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.
In an area in Detroit now known as the "New Center", technology companies and innovative business incubators have been making their presence known. The New Center, previously known as "New Amsterdam", is located in the center of Detroit near Woodward, Grand Boulevard (East and West), Warren Avenue, and the I-94 Freeway. Most importantly, TechTown is in the area of the former General Motors Headquarters and many of the offices of TechTown are located in historic buildings designed by the late world-renowned architect Albert Kahn.