GM says it can save $1 billion annually in labor costs

Posted: Apr 01, 2009
Filed under: GM, Industry News

General Motors said that new agreements with the United Auto Workers will save the company at least $1 billion annually. The savings were outlined in a 17-page report submitted to the U.S. Treasury Department yesterday.

GM said that last year’s hourly costs fell to $7.6 billion and that it is projecting a further drop to $6.5 billion this year. The Detroit automaker said that it expects cost to drop to $4.8 billion by 2012.

GM said that it also sought $10.2 billion in Energy Department loans from the $25 billion low-cost loan retooling program. However, it is unlikely that the Energy Department can legally give GM any loans since Obama’s auto task force decided that the company isn’t viable in its current form.

- By: Omar Rana

Source: Detroit News

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  • Ivan Gutierrez
    Does anyone know how much Nissan, Honda, or Toyota spend as far as Labor Costs? I'm sure it's a lot less than $6.5 Billion.
  • jvc
    They are fooling themselves if they think they will improve by simply accepting a reduction in wages from the UAW. What will remain is the inefficiency, mafia politics of the UAW, and exorbitant and unearned benefits.

    I had little hope of ever buying GM but now I will never support a company that has no clue how to run day to day operations, rewards ineptitude (management) and laziness (union workers), much less produce a product that would ever be remotely attractive for anyone to buy.
  • GMfan87
    I'm sorry financial decisions of the company is what you base your purchasing of a car on. GM has proven they can build quality cars...their executives may be $h!t but the designers, engineers, and production workers (not all of which are greedy and "lazy") are who really make the car And they are doing a damn fine job. If you would like proof of their ability to make an "attractive" car that "anyone would buy" just ask Car and Driver, Motortrend, J.D. Power and Associates, Consumer Guide, and any current owner of a GM car, myself included.
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