GM to close 9 plants says CEO.

[Dino Scuderia]

Sad but necessary to stay afloat.

GM to Cut 30,000 Jobs, Close 9 Plants

By DEE-ANN DURBIN

DETROIT - General Motors Corp. announced plans Monday to cut 30,000 manufacturing jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand.

Rick Wagoner, chairman and CEO of the world's largest automaker, announced the closures during a speech to employees from GM's Detroit headquarters before the financial markets opened.

A service of the Associated Press(AP)

[eltrono]

GM to Cut 30,000 Jobs
!!!!
thats crazyy that is a lot of people, i feel sorry for them
i just have a question how come did all the big companies of autos are coming in bad financial situation since a couple or years? they have had really bad years but why?

[Dino Scuderia]

GM to Cut 30,000 Jobs
!!!!
thats crazyy that is a lot of people, i feel sorry for them
i just have a question how come did all the big companies of autos are coming in bad financial situation since a couple or years? they have had really bad years but why?

It's been a long time coming, besides losing market share every year GM has too much retirement debt. Bending to the UAW all these years has in effect turned them into a giant healthcare company which costs them 6 billion dollars per year.

No amount of possible sales can dig them out of this hole.

[Matra et Alpine]

Producing good quality cars that match the market sold well and maximised profitability MIGHT have made a difference.

[Dino Scuderia]

Producing good quality cars that match the market sold well and maximised profitability MIGHT have made a difference.

Agreed. They resisted too long making the effort it takes to make a mundane sedan like the Accord and Camry with equal refinement and appeal. It's now too late to regain that lost market share.

[werty]

maybe they should stop making cars like the HHR and bring back the camaro

[Dino Scuderia]

maybe they should stop making cars like the HHR and bring back the camaro

The HHR(Hopelessly Homely Retro) is selling very well actually so it isn't the problem.

[Matra et Alpine]

The HHR(Hopelessly Homely Retro) is selling very well actually so it isn't the problem.

Selling well against which forecast ?

It was originally forecast to be 100K units a year, they dropped that to 60,000 in June !

So is selling well meaning the 60,000 forecast ? ( which is really abysmal against the oroginal plans, plans which will have determined the features and target price/profit )

[PerfAdv]

The people have voted with their dollars and GM has lost. Is Toyota now the biggest auto manufacturer?

[eltrono]

im guessing that the asians are rowing a lot economically, they ar exporting a lot of things so maybe an asian country could be the next empire like the us is right know wich it could not e omething good :s

[Dino Scuderia]

Selling well against which forecast ?

It was originally forecast to be 100K units a year, they dropped that to 60,000 in June !

So is selling well meaning the 60,000 forecast ? ( which is really abysmal against the oroginal plans, plans which will have determined the features and target price/profit )

They adjusted the to forecast a more 'modest' forecast which does'nt mean sales are bad or that it isn't a profit maker. I see a lot of them on the road in my travels.

[werty]

The HHR(Hopelessly Homely Retro) is selling very well actually so it isn't the problem.

thats is so odd, i dont see why anyone would buy it, its so lame! isnt the horsepower like 100 or so

[Matra et Alpine]

They adjusted the to forecast a more 'modest' forecast which does'nt mean sales are bad or that it isn't a profit maker. I see a lot of them on the road in my travels.

The change to a lower forecast was VERY late int eh development cycle.
So when they were designing this car, planning the production, setting the produciton up they had the higher figure forecast.
SO when you THEN make 40% LESS then you seriously hurt profit.
Of course by late adjustment of forecast you neatly avoid the market claiming poor sales as the marketing bods will say how close to forecast or even exceeding it !!
Trust me, I've designed and sold a few dogs in my time. It's the way bean-counters need you to engage "business-speak"

[Dino Scuderia]

The change to a lower forecast was VERY late int eh development cycle.
So when they were designing this car, planning the production, setting the produciton up they had the higher figure forecast.
SO when you THEN make 40% LESS then you seriously hurt profit.
Of course by late adjustment of forecast you neatly avoid the market claiming poor sales as the marketing bods will say how close to forecast or even exceeding it !!
Trust me, I've designed and sold a few dogs in my time. It's the way bean-counters need you to engage "business-speak"

I agree, it is 'business speak'. Let's find some actual sales figures and see where it stands.

[Prius]

I heard that GM's game plan it to fix up their SUV line and lay off work.




















great idea.