GM is cutting 25,000 jobs...
#1
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GM Plans to Cut 25,000 U.S. Jobs by 2008
GM Plans to Cut 25,000 U.S. Jobs by 2008 - - By John Porretto, AP Auto Writer - - Source: biz.yahoo.com
WILMINGTON, Del. (AP) -- General Motors Corp. plans to eliminate 25,000 jobs in the United States by 2008 by closing additional assembly and components plants, part of a plan to revive its struggling North American operations.
Speaking to shareholders at GM's 96th annual shareholder meeting in Delaware Tuesday morning, Chairman and Chief Executive Rick Wagoner said the capacity and employment reductions will generate annual savings of roughly $2.5 billion.
Wagoner revealed the cutbacks as he laid out a four-step strategy to revive GM's North American business, the biggest and most troubling part of the world's largest automaker.
Wagoner focused on priorities for clarifying the role of each of GM's eight brands, intensifying efforts to reduce cost and improve quality and continuing to search for ways to reduce skyrocketing health care costs.
He noted that the company's current $1,500 per unit health-care expense puts GM at a "significant disadvantage versus foreign-based competitors," and said GM has conducted "intense discussions" with the unions about how to reduce health-care costs.
General Motors shares rose 52 cents, or 1.7 percent, to $30.94 in early trading on the New York Stock Exchange.
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.
Speaking to shareholders at GM's 96th annual shareholder meeting in Delaware Tuesday morning, Chairman and Chief Executive Rick Wagoner said the capacity and employment reductions will generate annual savings of roughly $2.5 billion.
Wagoner revealed the cutbacks as he laid out a four-step strategy to revive GM's North American business, the biggest and most troubling part of the world's largest automaker.
Wagoner focused on priorities for clarifying the role of each of GM's eight brands, intensifying efforts to reduce cost and improve quality and continuing to search for ways to reduce skyrocketing health care costs.
He noted that the company's current $1,500 per unit health-care expense puts GM at a "significant disadvantage versus foreign-based competitors," and said GM has conducted "intense discussions" with the unions about how to reduce health-care costs.
General Motors shares rose 52 cents, or 1.7 percent, to $30.94 in early trading on the New York Stock Exchange.
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.
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GM may be able to handle much of the reduction by offering early retirement incentives, said David Cole, chairman of the Center for Automotive Research, an independent research group, estimating that more than 25,000 of the company's U.S. workers are near retirement age.
They’ve got to come down hard on the Unions to take concessions and get those health care costs under control by passing some of the cost to employee's.
I don’t think sending more people to early retirement in 2-years will do it.
A badly bleeding company offering “incentives” to people isn’t going to help the bottom line.
#4
The sizzle in the Steak
The Union will find out the hard way that when it comes to a decision between saving the company or giving into the Union demands that will ultimately sink the company, GM will choose to save itself.
GM, say hello to the China labor market.
GM, say hello to the China labor market.
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GM's UAW contract essentially forces it to pay union employees during the life of the contract even if hourly workers are laid off and their plants are closed.
I wish I got full pay and benefits if I got laid off.
"As things currently stand, GM has too many brands, workers, managers, capacity, and bureaucracy," said Peter Morici, a business professor at the University of Maryland and a critic of GM's management who says the cuts announced Tuesday were too little and too late.
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#8
6G TLX-S
Originally Posted by phipark
If the UAW had the same healthcare costs/benefits as the other non-UAW employees, GMNA would be fine.
#9
Not Asian
Originally Posted by Edward'TLS
Then what's the point of having UAW. The main goal of UAW is to fight for out-of-the -world benefit packages from the earthly employers.
#10
Suzuka Master
GM is cutting 25,000 jobs...
Sad but I guess the one thing they need to realise is that they need to build as good as the Imports and be as competitive. I had 2 Accords and the Acura and they were assembled in the U.S. so they were not bad cars to buys (as far as buying American). When I test drove my Camry, I looked the vin # and it indicated it was assembled in the U.S. When I did get my car, since it had Nav, it came from Japan. If I am not mistaken, if the vin starts with 1 & 4 (US), 2 (Canada) and 3 (Mexico). J (Japan).
I remember 4 years ago, I test drove a Ford Contour as they were getting such raves. Within 1 minute, I could tell it was no where close to my Accord.
Just ranting. I just hope they can turn things around as we certainly cannot afford to lose more market shares in autos as well as lose more jobs.
I remember 4 years ago, I test drove a Ford Contour as they were getting such raves. Within 1 minute, I could tell it was no where close to my Accord.
Just ranting. I just hope they can turn things around as we certainly cannot afford to lose more market shares in autos as well as lose more jobs.
#11
GEEZER
Don't feel sorry for GM..I feel sorry for the employees.
#14
Team Owner
iTrader: (1)
Originally Posted by biker
Doh, very simple math - you sell fewer cars -> you need fewer people to make them.
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