General Motors posts record loss for 2007

The loss resulted largely from a third-quarter accounting charge for
unused tax credits. It topped the previous record loss for a U.S.
automaker, set by GM in 1992, when the company lost $23.4 billion.
For the fourth quarter, GM posted a loss of $722 million after a
year-earlier profit, as rising costs in North America and a loss at its
partially owned GMAC finance unit hit results.

GM's chief executive, Rick Wagoner, expects the automaker's comeback
in the first half of this year to be impeded by a slowing U.S. auto
market. Wagoner is trying to offset declining North American sales with
growth in Asia, Russia and Latin America.
GM said it would give workers several choices. Retirement-eligible
workers will get between $45,000 and $62,500 as an incentive to retire,
depending on their skill level. Younger workers can get up to $140,000
if they leave and cut all ties with the company.
GM said it expects the majority of workers to leave by July 1. Ford Motor and Chrysler already have announced similar buyout programs. GM had been offering buyouts to about 5,200 UAW workers at service and parts operations and some closed plants since December, but those workers now are eligible for the new, sweetened offer, which raises the incentive payments for retirement-eligible workers by $10,000 for production workers and $27,500 for skilled workers. GM is giving less than Ford and Chrysler, which are offering up to $70,000 in lump-sum payments, but GM said its offer is comparable
because workers who roll the money into a retirement account won't have to pay as much in taxes.

The Associated Press Tuesday, February 12, 2008