GM Posts $3.9 Billion Loss For 2017, UAW Employees Still Get $12K Profit-Sharing Checks

General Motors has released its 2017 financial report which revealed the automaker had an adjusted EBIT (earnings before interest and taxes) of $12.8 billion.

GM says the results were driven by a “strong performance in North America,” sustained growth at GM Financial, cost cutting moves, and a return to profitability in South America.

The picture isn’t completely rosy as the company revealed “on a consolidated basis (including discontinued operations), GM reported a 2017 net loss of $3.9 billion, driven primarily by charges totaling $13.5 billion.” This was largely due to tax reform in the United States and a $6.2 billion non-cash charge from the sale of Opel and Vauxhall to Groupe PSA. The automaker also left several markets including India and South Africa.

While 2017 wasn’t perfect, the company has high hopes for the future as the 2019 Chevrolet Silverado and GMC Sierra will be launched later this year. GM expects they will build on the success of recent entries such as the Buick Enclave, Chevrolet Traverse, and GMC Terrain.

While these reports typically provide a glimpse into the future, this release wasn’t too revealing as it confirmed the company expects to deploy autonomous vehicles in a “ride sharing environment” in 2019. GM also revealed plans to launch 15 models in China this year under the Buick, Cadillac, Chevrolet, Baojun and Wuling brands.

One of the biggest winners in today’s announcement was factory workers as The Detroit Free Press reports UAW-represented employees will receive profit-sharing checks of $11,750.

  • Six_Tymes

    This is a real shame to see this, they are making much better cars than in years past, I didn’t expect losses, again. Hello Mr Trump, just print more money to “save GM” like Obama did, then pass the problems onto the next president, like Obama did. “Kick the can down the road”… again.

    • Six Thousand Times

      The GM bailout was crafted by the Bush administration with the consent and cooperation of both the Obama and McCain campaigns. The Canadian government was also involved. If, however, you’d prefer to just attribute the whole thing to President Obama, don’t let me slow your roll.

      Also, printing money falls under the auspices of the Federal Reserve then chaired by Alan Greenspan – not an Obama appointee. Again, though, don’t mind me…

      • Moveon Libtards

        You McStain, Hitlery lover and traitor extradonaire? Campaigns? McStain never became President and thankfully he didnt.

        At least President Trump was against the bailout and was against the Iraq war that Hitlery voted for!

      • Gary

        Nice education for the uninformed. Thanks for the fact check.

        • donald seymour

          @@Mister5000:disqus Likewise, I didn’t even know that. But cool.

    • Moveon Libtards

      Thank God that disgrace we had in office is gone…and soon in prison or more.

      This is typical union “sharing in the company’s fortunes.” Ever notice they only “share” or demand to share when it is good for them, but never take responsibility or pay cuts when the company is losing money? How convenient.

    • Obama is the Reason, Always

      It’s always Obama’s fault, isn’t it? I blame Obama that you are even on this forum. Moron.

  • I’m very surprised…

    • donald seymour

      You and me both buddy, you and me both.

  • LWOAP

    I have no idea why the UAW was mentioned but whatever. I’m pretty sure someone is going to bash them later. Anyway, given the other factors that came into play, it’s probably safe to say GM posting a $3.9 billion dollar loss shouldn’t be a surprise……well, a big one anyway.

    • Six Thousand Times

      Their PSP may have been negotiated without an eye toward foreign gains or losses…

  • Andrewthecarguy

    Not an accurate picture.
    So if they did not sell Opel et al at a loss, there would be a profit of $3.4b.
    If they reduced the profit sharing checks by half, it would absorb some of the loss…UAW should absorb loss as well as it partakes in gain.

    Either way, GM is in the right direction style and tech wise, though I am not sure what is going on with Cadillac and Buick.

    • Bo Hanan

      Caddy’s cars speak for themselves. Buick is doing well in China and that is where there focus is.

    • Gary

      If GM management chooses to sell a unit at a loss, UAW should not be affected by such decision. To segment out their contribution to the business ops is the smart and just thing to do. Oh, so since management made a sale at a loss, they should suffer too!!?? NOT!!!

  • Moveon Libtards

    So where is all that “it is because of super woman CEO Mary Barra and her genius ways” today? Isnt it because she is a super WOMAN?

    Mary is not doing so well these days runjing a big company.

  • BlackPegasus

    If the thought of a little blue collar union worker getting a $11K profit sharing check bothers you, just compare it to the multimillion dollar bonuses those fat cats on Wall Street get every year. Middleclass families deserve a slice of the pie.

    • SteersUright

      Could not agree more. In fact, if the middle class salaries kept up with economic growth over the last 30 years (rather than nearly all of the wealth ending up in the pockets of the 1%) America would easily be the greatest nation in the world. When the middle class is empowered and well off (not the useless, invents-nothing-ever-1%) is when you see the most innovation in everything from tech and gadgets to space, medicine and more.

  • Mark S

    The losses had nothing to do with Tax Reform as the report was for FY17, tax reform does not take effect until 2018. Really guys.

  • eye.surgeon

    It’s going to be interesting watching the UAW kill GM twice. It was sweet union deals that did them in the first time and I see they’ve wasted no time getting back to it.

  • Folks, this is an accounting related “paper” loss and not a real loss. It has to do with valuations of discontinued operations and goodwill for which accounting charges have to be made, per U.S. accounting requirements.

  • SteersUright

    In the grand American tradition of late, I think all the executives should give themselves massive bonuses especially as the coffers seem to be running dry soon. Sarcasm aside, why the heck isnt the board firing every single exec at GM? From Cadillac to Chevy, they make somewhat decent, if not second rate cars only sold based on the size of the discount attached to each vehicle. GM is a major employer in the USA, we NEED them to make the world’s BEST and most compelling cars while the Europeans scramble to figure out why their so good, not the other way around. And, we have more than enough incredible young talent in this country. Fire the greedy, old school grey-hairs and revamp that company already.

    • Kyle Newberry

      Cadillac did that already lol. I’m not even a Cadi fan, but they are making performance cars on par with BMW. Merc, Jag, and the like.

      Chevy needs to do something fun in the subcompact. I love the look of the sonic, but why not a hot hatch? The cruze is that, only good for cruising. (Not to mention they have the blandest styling on anything that’s not a vette or camaro)

      GM should just not make trucks. Why make the same truck/SUV for two different auto makers that are the same company?

  • Kyle Newberry

    Yay Unions….

    There’s a difference between making a decent living wage and getting too much money for a job.

    • Six Thousand Times

      They negotiated that with management. Not sure what your problem is. Maybe just lack of understanding. Didn’t see you say anything about C-level compensation. Odd, that one.

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