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General Motors Posts Record Losses

The U.S. automotive company General Motors is reporting its largest annual loss.

GM Tuesday announced a deficit of $38.7 billion in 2007. It posted a fourth-quarter loss of $722 million.

In a restructuring effort, the company said it will offer buyouts to 74,000 hourly workers in the United States.

General Motors is the world's largest automaker. It says its North American division is struggling.

But overall, GM reported earlier this month that it sold more than two percent more cars this January than it had one year ago.

That increase followed sales declines reported by other major car companies.

White House spokeswoman Dana Perino today said GM's loss is "significant." But she cited the company's restructuring efforts and expressed optimism that the automaker would remain competitive.

Some information for this report was provided by AP, AFP and Reuters.