General Motors Corporation will offer buyouts to all of its hourly employees as the troubled automaker looks to cut more costs. The buyouts are focused on GM’s 22,000 retirement-eligible hourly employees, though any union employee can take the offer. GM is offering $20,000 in cash and a $25,000 car voucher for workers that retire early and those who simply leave the company. Further details will be released to employees on Friday. Employees will have until March 24th to decide whether to accept this latest and most generous buyout offer and those who do accept will leave the company by April first. The announcement of the buyout offer is the latest round of cost-cutting measures by GM, which is in overdrive to produce a plan for viability by mid-February. GM shares fell 15 cents, or 5.2 percent to $2.74 in morning trading. In other automaker news, Ford Motor Corporation reports that its US sales fell 40 percent in January, beginning the year with a sales tumble that was greater than expected and could turn out to be the worst month for the US auto industry in over 25 years. And Chrysler LLC sales chief Steven Landry said Tuesday that he expects industry-wide sales to drop as much as 35 percent from a year ago. In retail news, department store chain, Macy's announced Monday it will cut its dividend by more than half and reduce its work force by cutting 7,000 jobs. Macy's shares closed at $8.49 yesterday, hit with a 4 percent loss, whereas the stock was valued at more than $28, just a year ago. 4 percent of its employee base will be eliminated as part of its plan to cut 2009 costs by $250 million and $400 million annually starting in 2010. The Macy's board of directors also approved a 62 percent reduction in its quarterly dividend, down 5 cents a share from the current payout of $13.25. The Treasury Department has released 1.15 billion dollars to 42 banks in 25 states in new payments from the government's 700 billion dollar financial rescue fund. The latest distributions were made Friday and are the second round of payment released since the inauguration of President Obama, just two weeks ago. The latest payments raise the total number of financial institutions to receive assistance to 359 in 45 states and Puerto Rico, having received over 195 billion dollars in support thus far. The government also plans to devote 250 billion dollars of the bailout programs first 350 billion to making direct purchases of bank stock. Republican Senator Judd Gregg drew President Obama's nomination for Commerce secretary Tuesday in a bipartisan gesture from the President. Gregg praised Obama's 800 billion dollar proposal to stabilize the economic slide and pull the country out of the recession as an "extraordinarily bold, aggressive, effective and comprehensive plan." If confirmed by the Senate, Gregg would take over a sprawling Commerce Department which is heads several tasks, including the most daunting: job creation.
General Motors Corporation will offer buyouts to all of its hourly employees as the troubled automak...
