April 27, 2009

Will GM Really Be GM?

GM has come out with some of it's restructuring plans and what's left after the cuts might not be recognizable as GM.

General Motors Corp. announced plans to phase out its Pontiac brand and cut 21,000 U.S. factory jobs by next year -- as part of a major restructuring effort needed to get billions more in government aid.

In total, GM is cutting more than 7,000 additional jobs than what it announced on Feb. 17 and 500 additional dealers, plus closing another plant -- or 16 of its 47 U.S. manufacturing plants by 2012 -- and 13 of those plants by the end of the next year; GM hasn't named any of those plants yet.

GM said it plans to sell or close Hummer, Saab and Saturn brands by the end of this year -- faster than an earlier schedule.

GM said it would cut its hourly employment by 21,000 to 40,000 in 2010 -- a 34 percent reduction, and level off at about 38,000 starting in 2011. GM plans a further decline in salaried and executive employment -- for 7,000 to 8,000 additional job cuts than what was announced in GM's Feb. 17 viability plan

GM also plans to speed up and increase the number of dealers it sheds. GM said it plans to shrink U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010, a reduction of 42 percent -- 500 more than announced on Feb. 17

So there you have it, GM ends up becoming gm.

Posted by Quality Weenie at April 27, 2009 08:48 AM | TrackBack
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