Auto maker General Motors made a huge profit in 2011.
February 17, 2012- General Motors released its earnings report for 2011 and ended the year with a profit of $7.6 billion. After the annual report was released, GM’s stock closed at $27.17. That price is the highest close for the automaker’s stock since the beginning of August last year. Analysts were pleased by the profit from the company’s North America unit even though losses were announced in both South America and Europe.
Since the 1980s, General Motors has had profit sharing with is over 47,000 United Auto Workers. The recent profit will mean over $7,000 in profit sharing for that group making it the largest profit sharing payout the company has had since it was started nearly 30 years ago.
Besides the UAW workers, salaried employees will also be receiving a bonus but GM. did not disclose those figures. The region will be impacted economically because of the amount of bonuses, profit sharing and stock price increases. One portfolio manager said, “$20,000 can be generated from just a payout of $5,000 if spent in the local economy.”
The thought is some who receive the extra money will use it to reduce debt, pay taxes, add to savings or spend it outside the state of Michigan, therefore the amount generated in the economy from each check is between $10,000 and $20,000, said the manager.
