GM Posts $15.5 Billion Loss; More Job Cuts Possible General Motors Corp. on Friday reported a $15.5 billion loss for the second quarter of 2008, due in part to a labor strike at one of its suppliers and plummeting sales of trucks and SUVs. The report came as a GM official said the auto giant might offer another round of buyouts and early retirement to its U.S. hourly workers.
NPR logo GM Posts $15.5 Billion Loss; More Job Cuts Possible

GM Posts $15.5 Billion Loss; More Job Cuts Possible

General Motors Corp. on Friday reported a $15.5 billion loss for the second quarter of 2008, due in part to a labor strike at one of its suppliers and plummeting sales of trucks and SUVs.

The report came as GM Chief Financial Officer Ray Young said the auto giant might offer another round of buyouts and early retirement to its U.S. hourly workers because of production cuts.

Company officials said the gaping loss for April through June includes more than $9 billion in one-time charges, including $3.3 billion to pay for a recent round of buyouts for hourly workers that ended July 1 and $1.3 billion worth of write-offs because of a decline in the value of GMAC Financial Services, which offers auto financing and home mortgages.

Revenue for the April-June period was $38.2 billion, down $8.5 billion from a year earlier. GM made a profit of $891 million in the same period last year.

A strike at parts supplier American Axle shut down dozens of vehicle assembly plants for weeks, officials said. High gas prices also hurt sales of the company's sport utility vehicles. The change in consumer demand has pushed GM to shift production at some plants to more fuel-efficient cars.

Nearly 19,000 manufacturing workers — or about 25 percent of GM's U.S. hourly work force — signed up for the latest round of buyout offers, which ended July 1. Young said 90 percent of those workers have left the company.

Young said more buyouts could be coming as steep declines in demand for trucks and SUVs continue.

From wire reports.