Bleeding Badly

General Motors Corp. warned of more cutbacks after a disastrous 2005 by reporting an $8.6-billion loss for the year. Larger than anticipated, the loss raised more concerns within employee ranks about the automaker's shaky future. Putting this amount in perspective: it equals $23,561,644 a day or is nearly equal to the $8.9 billion in profit made by GM the previous four years.

GM's bad news is the second in a week for Detroit. Ford Motor Co. on Monday said it would stop production within the next six years at 14 North American facilities, and cut 25,000 to 30,000 hourly jobs to stem its losses of $1.6 billion in 2005.

Obviously, losses like this cannot be sustained and GM is again stating that it will need more than health care concessions and again reiterated how it carries a "huge legacy cost disadvantage burden," that pays health care and pension benefits to more than 1 million retirees. This is a burden not being borne by it's foreign competition.

If the Bushies really want to protect America and keep it strong, they can start in Detroit with real national health care.
Posted on The Human Stain