General Motors reported a loss of $722 million for Q4, which works out to $1.28 per share. In the fourth quarter of 2006, the company reported a profit of $950 million, or $1.68 a share. The company blamed the big swing on losses at GMAC, the finance arm of GM, and a general slowdown in vehicle sales.
Be careful of reading too much into this loss. Excluding one-time items, GM reported a profit of $46 million, or 8 cents per share, on revenue of $47.1 billion. Revenue for auto sales was $46.7 billion, which is $3 billion more than Q4 last year.
GM also announced that it will offer a buyout of all U.S. UAW members. The buyout offer goes as high as $140,000 for those with the most experience and highest salaries, but comes with the high price tag of having to give up future health care and other retirement benefits. GMs goals it to get more highly paid workers to leave so that they can hire replacements who will make approximately half as much due to the new collective bargaining agreement allowing a two-tier wage system.
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