Third largest quarterly loss in company's history
Aug 01, 2008 - 08:58 AM
OSHAWA -- Reduced truck capacity is among the factors blamed as General Motors reported a whopping $15.5 billion loss for its second quarter of 2008.
The loss announced Friday morning in a news release out of Detroit is the third largest in the company's 100-year history and more than twice that of rival Ford.
Costs associated with the American Axle strike that temporarily shut down both truck and car manufacturing in Oshawa earlier this year -- as well as the costs associated with reducing truck capacity -- are also blamed. GM announced June 3 that the Oshawa truck plant is among four that will be shut down due to slumping truck sales.
"The company has outlined a strong cadence of product, powertrain, capacity and liquidity actions over the past 60 days, to realign the business with current U.S. economic and auto market conditions, and position the company for profitable global growth," the company said in a news release.
About 2,600 jobs will be eliminated in Oshawa as a result of the decision to close the truck plant in the second half of 2009.
The Canadian Auto Workers Union Monday outlined details of the company's buyout offers aimed at cushioning the impact of the shutdown.
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