America’s UAW union says its members “deserve every penny” of the US$12,000 maximum bonus to be paid by General Motors as its staff share in record 2016 revenue of US$166bn unveiled this week.
Although net income was slightly down at US9.4bn, very strong performance in North America drove profits close to home, but GM is still still facing challenges in Europe and South America.
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“[The] Performance bonus announcement of a maximum of US$12,000 each rewards our members’ dedication and commitment to building some of the most popular and high-quality vehicles in the world,” said UAW vice president, Cindy Estrada.
“They deserve every penny of that collectively bargained bonus cheque.”
In the North America region, GM posted calendar year records for EBIT-adj. of US$12bn and revenue of US$119bn. The company achieved 10.1% EBIT-adj. margin for the year – the second consecutive year this margin has been 10% or greater.
GM said it reduced losses in Europe in 2016 by $0.6bn during the year – but that still left a $0.3bn EBIT-adj loss. Without the negative US$0.3bn impact of Brexit, GM would have achieved its objective of break-even for the year.
GM said it reduced losses in Europe in 2016 by $0.6bn during the year – but that still left a $0.3bn EBIT-adj loss.
The manufacturer raised its cost efficiency target for 2015-2018 to US$6.5bn, an increase of US$1bn.
