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Employee discounts and now this...yeesh.. GM is having some fun. <_<
http://www.msnbc.msn.com/id/8129876/ WILMINGTON, Del. - General Motors Corp. plans to eliminate 25,000 manufacturing jobs in the United States by 2008 and close plants as part of a strategy to revive North American business at the world’s largest automaker, its chairman said on Tuesday. Speaking to shareholders at GM’s 97th annual shareholder meeting in Delaware, Chairman and Chief Executive Rick Wagoner said the capacity and job cuts should generate annual savings of roughly $2.5 billion. GM now employs 110,000 hourly workers in the United States. Wagoner revealed the cutbacks as he laid out a four-step strategy to invigorate GM’s North American operations, its biggest and most troubling part. Already this year, GM’s U.S. market share has fallen from 27 percent a year ago to 25.4 percent, much of the loss at the expense of Asian automakers such as Toyota Motor Corp. and Nissan Motor Co. Wagoner focused on four priorities: increasing spending on new cars and trucks; clarifying the role of each of GM’s eight brands; intensifying efforts to reduce costs and improve quality; and continuing to search for ways to reduce skyrocketing health care expenses. He noted that health-care expenses add $1,500 to the cost of each GM vehicle. This puts GM at a “significant disadvantage versus foreign-based competitors,” Wagoner said. GM’s shares have tumbled to their lowest price in more than a decade, and Fitch Ratings and Standard and Poor’s Ratings Services both reduced the company’s bond rating to “junk” status last month. Billionaire investor Kirk Kerkorian’s offer to purchase 28 million GM shares at $31 apiece, boosting his stake to about 9 percent from 4 percent, expires later today. Wagoner said it was vital for the company to cut costs by improving efficiency at its manufacturing plants. He said plant closings and idlings in recent months will reduce assembly capacity in North America from 6 million in 2002 to 5 million by the end of this year. GM spokesman Edd Snyder said the company wouldn’t release further details Tuesday about which plants might be closed. “What was contained in the speech is what we have right now,” Snyder said. Messages were left Tuesday morning with the United Auto Workers. GM already has closed or discontinued production at several facilities this year. The company shut a factory in Linden, N.J., in April and a factory in Baltimore in May, affecting around 2,000 employees. The company also closed two plants in Lansing, Mich., last month, although those 3,500 employees are expected to find work at other GM facilities in the city. “Let me say up front that our absolute top priority is to get our largest business unit back to profitability as soon as possible,” Wagoner said. Part of that bid involves negotiating with the UAW and other unions, discussions that are ongoing. Wagoner said the talks, which he described as intense, have focused on a cooperative approach to significantly reduce GM’s health care costs. GM’s health care tab for its 1.1 million current and former workers and their families is more than $5 billion a year and rising. “We have not reached an agreement at this time, and to be honest, I’m not 100 percent that we will,” Wagoner said of the ongoing talks with its unions. “But all parties are working hard on it, in the spirit of addressing a huge risk to our collective futures while providing greater security and good benefits for our employees.” To date, the UAW has indicated it won’t reopen its contract, which expires in 2007, and agree to pick up a larger share of soaring health care costs. What happens if GM can’t reach an agreement with the UAW promptly? “I don’t believe it serves a useful purpose to speculate on that,” said Wagoner, the CEO since 2000 and chairman since 2003. “Let me just emphasize our very strongly preferred approach is to do this in cooperation with the UAW because we’re convinced that’s the best way for our employees, stockholders and all our constituents,” he said. Aside from growing health care and pension costs, GM has had lackluster sales lately of its highly profitable trucks and sport utility vehicles, which have been hurt by high fuel prices. GM’s sales were down 5 percent in the first five months of the year, and the automaker reported a $1.1 billion loss in the first quarter. |
This and their stocks still went up yesterday. :dunno:
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how much is their employee discount worth anyway?
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Originally posted by freebass55@June 7, 2005, 11:33 AM This and their stocks still went up yesterday. :dunno: |
That would make sense, but I see that as a desperation move not a long term help. I dunno, that's why I just have money in stocks and pay someone else to manage them.
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stocks are held for an average of 2 years, most stockholders only think in the short term (myself included, I deal my own). that's why it is a form of gambling...
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This way all the people who still get their pink slips will still be able to get the discount.
In all seroiusness this is a sad day for the American auto industry. GM used to be the largest employer in the united states. At least the imports are building plants in the US to create some jobs. |
While the 25,000 employee cutback got all the news, I also read where, while no there are no plans to eliminate another brand line (ie Oldsmobile), they plan to offer more limited models in some of their lines. I read this to mean more employee cuts are coming and more specialized models for maybe like Pontiac, Buick, etc
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Originally posted by jgsmuzzy@June 7, 2005, 7:46 PM stocks are held for an average of 2 years, most stockholders only think in the short term (myself included, I deal my own). that's why it is a form of gambling... |
Originally posted by Ranger@June 9, 2005, 9:55 AM While the 25,000 employee cutback got all the news, I also read where, while no there are no plans to eliminate another brand line (ie Oldsmobile), they plan to offer more limited models in some of their lines. I read this to mean more employee cuts are coming and more specialized models for maybe like Pontiac, Buick, etc |
Originally posted by TomServo92@June 9, 2005, 9:53 AM What I read is that they plan to combine Pontiac, Buick, and GMC into a single brand. There won't be anymore standalone dealerships for those brands. Dealerships will have carry all three or none at all. It also means that some models (i.e. Pontiac and Buick minivans and SUVS) will be dropped since GMC will have them. Pontiac will be the sporty line for the brand with Buick being the more upscale models. Of course, GMC will be the truck/SUV line. |
Originally posted by holderca1@June 9, 2005, 12:03 PM No more Pontiac SUVs? What is the world coming to? :jester: Isn't Pontiac the only one of the three to have a minivan? I didn't think the other two had one. |
Originally posted by 1999 Black 35th GT@June 9, 2005, 1:23 PM I think you're right. The Buick Rendevous is a crossover and the GMC Safari is a full sized van. The Montana is the only GM minivan I know of. :dunno: Here's a quote from the article: In the past, GM gave brands their own versions of the same vehicle -- creating an overlapping product lineup and confusion in the marketplace. For instance, Buick offers the Terraza minivan, and Pontiac sells the Montana SV6 minivan. Meanwhile, Chevrolet markets the Uplander minivan, and Saturn sells the Relay. Those minivans are built on the same underpinnings. In the future, LaNeve said, GM might not have minivans for Pontiac and Buick. http://www.autoweek.com/news.cms?newsId=102430 |
Originally posted by holderca1@June 9, 2005, 11:03 AM No more Pontiac SUVs? What is the world coming to? :jester: Isn't Pontiac the only one of the three to have a minivan? I didn't think the other two had one. BTW, I was referring to Buick SUVs, not Pontiac....smart-hiney!!! :D EDIT: Pontiac still makes the Aztec which is sort of an SUV...I think.... :scratch: |
A family member that works for Delphi says in response to the GM lay offs, Delphi will cut about 8000 employees
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Originally posted by TomServo92@June 9, 2005, 12:36 PM Buick has a minivan. BTW, I was referring to Buick SUVs, not Pontiac....smart-hiney!!! :D EDIT: Pontiac still makes the Aztec which is sort of an SUV...I think.... :scratch: I meant that no one would miss the Aztec if it were gone. |
Originally posted by holderca1@June 10, 2005, 3:44 PM Hmm, my reply got deleted for some reason. I meant that no one would miss the Aztec if it were gone. Those things were a bomb :rolleyes: The only decent looking one I saw was a black one. It was .... meh <_< |
Sometimes you don't know how much you miss something until its gone. Aztec unique look will be missed.
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Originally posted by Red Star@June 10, 2005, 4:17 PM Sometimes you don't know how much you miss something until its gone. Aztec unique look will be missed. |
Originally posted by Red Star@June 10, 2005, 2:17 PM Sometimes you don't know how much you miss something until its gone. Aztec unique look will be missed. |
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