General Motors Loss
(Richard J. Newman)
Declining in sales, General Motors has experienced a significant financial loss. During the last year, they have lost around $10.8 billion. They are offering buyouts to current workers, in order to cut back their investments. The company intends to pay the workers hefty sum, ranging from $35,000 to $140,000.
GM motors have been making vehicles at a larger rate than they can sell them. They have had to cut GM workers of some of their benefits. This is how they will be able to buyout their workers. Rick Wagoner is accepted as the ?financial whiz?, who will pull GM out of the financial struggles.
This closely relates to the topic of aggregate demand. General Motors have produced a quantity of cars, over what they are able to sell. In order to resolve the issue, General Motors will have to cut down production, which would bring the supply and demand curves inward.
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