Record PROFIT for GM in 2011

Detroit Headquarters of #1 General Motors Corporation

Thank you President Barack Obama and the Michigan Democratic Congressional Leaders! 

This story is courtesy of the Detroit Free Press Feb 16 2012

General Motors made a record $7.6 billion in 2011, driven by a $7.2 billion profit in North America that ensures its highest profit sharing payments of $7,000 each to its UAW workers. 

Overall, GM’s 2011 profit rose from last year’s $4.7 billion and broke the previous record annual profit of $6.7 billion in 1997. 

Revenue for the year increased 11% to $150.3 billion and earnings before interest and tax was $8.3 billion compared with $7 billion in 2010 

The full-year results were hampered by Opel, its European unit, which lost $700 million – a $1.3 billion improvement, but Opel's 12th straight annual loss in a market struggling with overcapacity. The loss raises more questions about the wisdom of reversing the decision to sell Opel in 2009.

“We grew share around the world,” Dan Ammann, GM’s chief financial officer, told reporters this morning.

“Clearly we have work to do in Europe and South America,” he said.

Fourth-quarter net income of $500 million was flat from a year ago, but the profit of 39 cents per share was below the 41-43-cent range analysts expected.

The strength of North American operations means GM’s profit sharing payment is the largest since 1983 when payments began.

The payout formula was changed to become simpler and more transparent as part of last fall’s contract negotiations with the UnitedAuto Workers union.

The typical Ford employee is eligible for $6,200 based on the $6.2 billion in operating profit in North America in 2011.

Chrysler workers are eligible for $1,500. The Auburn Hills automaker had an operating profit of $1.97 billion and about 85% was derived from North America. 

GM’s payment has only exceeded the amounts at both Ford and Chrysler twice since 1983. The previous record GM payout was last year’s average of more than $4,000 each but most years the amount was less than $1,000 and substantially below the other Detroit automakers.

UAW Meeting @ Cobo Center with Granholm

June 14, 2010---The United Auto Workers union opened its 35th Constitutional Convention at Detroit's Cobo Center today, where an estimated 1,200 delegates will elect a new president and other officers, and plot the union's future. The UAW represents workers in the auto industry as well as aircraft manufacture and other industries in the US. 

 David Guralnick / The Detroit News

The convention kicked off with about a dozen United Auto Workers protesting outside of the convention (Above). Al Benchich, a General Motors retiree and ex-president of Local 909 in Warren, attracts the attention of a Detroit Police officer after handing out flyers announcing a planned rally outside of Cobo Hall. (Below).                                                    

                                                                               David Guralnick / The Detroit News
Sources quote Governor Jennifer Granholm during the opening of the session, "If we had a hands-off policy, GM and Chrysler would have been gone," Granholm was referring to the government bailout of two of the Detroit Three automakers."Your jobs would have been gone. We would be a nation making nothing." 

Detroit News reports that Ford Motor Co. made $2 billion in the first three months this year, its fourth consecutive quarter in the black. General Motors Co. and Chrysler Group LLC, although still in debt to the federal government, are stronger financially after short bankruptcies last year. GM made $865 million in the first quarter; Chrysler reported an operating profit, which excludes interest and taxes, of $143 million.

The problem many UAW delegates are seeking solutions for is how to regain some pay and fringe benefits they have sacrificed to help Detroit automakers survive. UAW delegates aired beliefs that the country’s economic crisis has unfairly burdened working Michigan families and that the City of Detroit needs massive programs of public investment, more state and federal aid and labor reform that respects the right to organize and bargain collectively. Several resolutions have been passed since Day 1 of the convention on Sunday, June 13, 2010.

Urban Agenda – A resolution approved, on Tuesday, June 15, supporting the UAW’s commitment to strong and vital urban centers. The union’s vision includes a strong safety net, quality educational institutions and access to high-wage jobs to lift urban residents out of poverty. “This issue is near and dear to our hearts because one in four children lives in poverty. They are not around the corner from us, they are next door to us,” said delegate John Anthony (Left) of UAW Local 602.

 

Photo by Rebecca Cook (UAW.org).

 


Sources
1. The Detroit News: http://www.detnews.com/article/20100614/AUTO01/6140382/Granholm-defends-autos-bailout-at-Detroit-UAW-meeting#ixzz0r2FheLEL 
2. United Auto Workers: http://www.uaw.org/convention, http://www.uaw.org/convention/articles/economy-international-labor-solidarity-resolutions-pass

Things to Do Thursday: 4th Fridays at Campus Martius

4th Fridays by Ford returns this year to Campus Martius! 

This Friday, the theme is "Celebrating 50 Years of Motown"!

From the Campus Martius website:

6:00PM, features live music variety, drink specials and opportunities for networking in the beautifully landscaped Park.

From 6:00-7:30PM, the best of Detroit’s music and entertainment will be featured at the Park.

The Ford Half-Time Show, 7:30-8:00PM, will include give-aways and raffle prizes from 4th Fridays sponsor Ford Motor Company.

The 4th Fridays with Ford monthly headliners will take the stage at 8:00PM and perform until 9:30PM.

Contemporary film classics with musical themes, projected on the big screen in the Park, will close each month’s 4th Fridays with Ford celebration, beginning at 9:30PM. Bring your blanket or pull up a Park chair and enjoy the films.

Or, you might end the night of music on a free walking tour led by Inside Detroit. Each month will “spotlight” four restaurant or bar locations in a different downtown district, offering special 4th Fridays discounts. The tour will end at the official Inside Detroit After Party location with food and drink specials and insider fun.

Featured 4th Fridays with Ford events on June 26:

A sampling of entertainment during Lunchtime Arts, from 11:30AM- 1:30PM in the Park, will feature preview artists from Concert of Colors July event. 

A mix of music and dance is highlighted on the main stage, 6:00-7:30PM, including a Tribute to Motown’s 50th Anniversary featuring a powerhouse band led by Edward Gooch, road musician for The Miracles and The Four Tops, The Funk Brothers, musical director Robert Jones, and more performers to be announced.

From 7:30-8:00PM, a “Happy Anniversary Motown” cake-cutting will take place with the Motown Historical Museum, plus prizes for “Detroit Trivia” audience game players.

Making an appearance as the headliner is long-time Silver Bullet Band saxman Alto Reed, leading a band of Detroit Classic Rock all-stars including drummer Johnny “Bee” Badanjek and guitarist Jim McCarty, both formerly of Mitch Ryder & The Detroit Wheels. This special evening marks the launch of Alto’s new classic Detroit Rock album, “Tonight We Ride.” Alto Reed and the Detroit Classic Rock all-stars will perform from 8:00-9:30PM.

Continuing with the Motown theme, “Standing in the Shadows of Motown,” is the film classic that will be shown on the big screen at 9:30PM in the Park to culminate 4th Fridays with Ford. 

The featured downtown district and official after party location in June is Bookies Bar & Grille in North Downtown. The address is 2208 Cass Ave.

 

Find the complete poster here...