General Motors reports earnings of $4.7 billion in 2010
This massive $4.7 billion earning by General Motors is the result of their positive bankruptcy proceedings, the shedding of less-profitable brands, the rebound of the US auto industry and GM’s healthy growth in the booming Chinese market. The company earned that $4.7 billion with total revenue in the ballpark of $135.6 billion from around the world.
This marks the first time since 2004 that General Motors has shown a profit throughout the course of a fiscal year and $4.7 billion makes for the best year for the General since 1999. Also, 2010’s positive outcome marks the end of a 5-year slide by GM, in which they showed a combined loss of over $100 billion.
This comes as especially good news to the workers at GM, as the company is planning a profit sharing bonus to hourly workers expected to average between $4,000 and $4,500. General Motors hopes to use the strong 2010 year combined with the hefty profit sharing bonuses to help sway the auto workers union into agreeing to profit bonuses rather than annual “lockstep” raises that happen regardless of how good or bad a year the company has. However, with the company earning $4.6 billion, the UAW may be less likely to show any compassion for GMs desire to cut costs as they work through contract negotiations.
We should be learning in the next few days just how much the hourly workers at GM will be getting for their 2010 profit sharing bonuses and beyond that, we can expect to see the salaried workers receive bonuses in the area of $10,000 – another factor that could work against the automaker as they haggle with the USW over the new contract.
Other GM News:
GM, Chrysler won't be at the 2011 Tokyo Motor Show
GM wants Lutz back, Uncle Sam says no
General Motors to add new models in Chinese market
GM UAW hourly workers could see $4,000 in bonuses
Big 3 salaried workers to receive huge bonuses