Gov’t Motors Employes to Receive Bonuses up to $7,000

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Lmcat

Gov’t Motors Employes to Receive Bonuses up to $7,000 Each while Taxpayers lose $5BILLION!

Posted on December 22, 2012

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Profit-sharing bonuses for United Auto Workers’ members at Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) are expected to be at least as large as last year’s payout at General Motors and larger than the year-ago bonuses paid at Ford. Approximately 55,000 GM hourly workers and 40,000 Ford employees are in line for the payments.

GM workers can expect bonuses of between $5,500 and $7,000, and Ford’s employees could receive a payment of more than $8,000 each, according to a report in The Wall Street Journal. The payments are based on a formula that gives workers a $1 bonus for every $1 million in North American operating profit at the two companies.

U.S. auto sales are on track to top 14.5 million units in 2012, up 14% over last year’s sales total. In the first three quarters of the year, GM has posted operating profit of $5.55 billion and Ford’s profit totals nearly $6.5 billion. And the fourth quarter looks good too.

Treasury has finalized a plan to sell its remaining stake in the nation's biggest automaker over the next 15 months, beginning with GM buying back 200 million shares from the Treasury by the end of this year. That will leave the government holding about 19 percent of GM's shares, which it plans to sell throughout 2013 and perhaps into 2014. For taxpayers to get their money back, the government would have to sell at an average price of about $52. So by simple math, the total break-even price for those first 200 million shares would be about $10.4 billion. The $5.5 billion sale price amounts to roughly a $5 billion loss for taxpayers.

Read more:  http://conservativebyte.com/2012/12/govt-moto...z2FoztKxPq