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GM and UAW have been locked in contract negotiations for several months now. When UAW took a strike vote earlier this month the results were 96% in favor of a strike. The current contract expires at midnight tonight and the UAW members will be shutting down assembly lines and picking up pickets.

Before anyone chimes in one way or the other, GM North America had a net profit of $35 Billion in 2018. GM worldwide is doing even better. This is all while shuttering almost all North American sedan factories, effectively abandoning 20% of the automotive market.
 

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Strike also includes the parts warehouse and distribution centers.
 

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I've read that the Teamsters are also refusing to cross lines to transport product from affected plants.
 

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GM and UAW have been locked in contract negotiations for several months now. When UAW took a strike vote earlier this month the results were 96% in favor of a strike. The current contract expires at midnight tonight and the UAW members will be shutting down assembly lines and picking up pickets.

Before anyone chimes in one way or the other, GM North America had a net profit of $35 Billion in 2018. GM worldwide is doing even better. This is all while shuttering almost all North American sedan factories, effectively abandoning 20% of the automotive market.
I heard on the news that it was $35B over the last 3 years, but I'm looking at the GM financials now, and they made $8.0B in net income last year; ($3.9B) in 2017, but they had a very high tax bill, maybe paying down US taxes for foreign income?, dunno; and $9.4B in 2016. Even if you normalize the 2017 number by taking out whatever extraordinary charge, it doesn't come out to $35B in net income. However, if you add the Operating Income from the last 4 fiscal years, you get $35.8B. Figures, the amount reported don't match up with the financials.

If GM had made $35B in any single year, that would put them up with Apple and Exxon and Aramco for most profitable companies in the World. I think we'd have heard more about that, if that was the case.
 

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I'm interested to see which side of this Trump takes. Republicans are totally anti Union. Yet many of their base are Union workers


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I'm interested to see which side of this Trump takes. Republicans are totally anti Union. Yet many of their base are Union workers


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Big irony of folks voting against their economic interest.


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Discussion Starter #7
I heard on the news that it was $35B over the last 3 years, but I'm looking at the GM financials now, and they made $8.0B in net income last year; ($3.9B) in 2017, but they had a very high tax bill, maybe paying down US taxes for foreign income?, dunno; and $9.4B in 2016. Even if you normalize the 2017 number by taking out whatever extraordinary charge, it doesn't come out to $35B in net income. However, if you add the Operating Income from the last 4 fiscal years, you get $35.8B. Figures, the amount reported don't match up with the financials.

If GM had made $35B in any single year, that would put them up with Apple and Exxon and Aramco for most profitable companies in the World. I think we'd have heard more about that, if that was the case.
Ken - thanks for the update. The first report I read listed it as one year but later reports are showing it to be over 3 to 6 years.
 

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... but they had a very high tax bill, maybe paying down US taxes for foreign income?, dunno; and $9.4B in 2016....
Using their losses where they claimed bankruptcy and stuck it to many.

General Motors has earned tens of billions of dollars in profit over the past decade. But the automaker has paid essentially no federal income tax to Washington since it came out of bankruptcy.

And GM probably won't have to pay much in federal taxes for at least the next five years.

GM isn't evading Uncle Sam. Federal law allows companies to use past losses to shield future profits from taxes. The tax break, known by the wonky name "net operating loss carryforward," is one the most common tax breaks in corporate America. Most businesses lose money at some point. The tax break is designed to help struggling companies get back on their feet.


GM is an extreme example. It suffered huge losses leading up to its 2009 bankruptcy. By 2010, it was again profitable, and it has essentially been very profitable ever since.

The company's finances have been in the news again over the last week after it announced plans to close plants and cut thousands of jobs. President Donald Trump immediately attacked GM, arguing it should keep the plants open because of the taxpayer help it's gotten in the past. He vowed to cut off any subsidies it is still receiving.
But for GM, its ability to effectively bank past losses to reduce present and future tax bills is more valuable than any of those government programs, including the net cost of the 2009 auto bailout and a federal tax credit for people who buy plug-in cars.
According to corporate filings, GM paid $18 million in federal taxes last year, its largest tax bill since the bankruptcy. Despite the federal tax break, the company paid millions in other kinds of taxes: $83 million in state and local, and $552 million in foreign, taxes last year, for example.

GM paid federal income tax in just three other years since 2010, totaling another $18 million. In most years it posted even larger credits, not an expense, for federal income taxes.
 

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This wasn't always the case...
That’s for sure. I grew up in New York in the 70s and even then there were a lot of pro labor pro union Republicans. Who the unions actually went out and worked to get elected. No longer the case unfortunately.


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