Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[More cuts across the board: General Motors to slash dealers, plants and employees]]>http://www.autoblog.com/2009/04/27/more-cuts-across-the-board-general-motors-to-slashing-dealers/http://www.autoblog.com/2009/04/27/more-cuts-across-the-board-general-motors-to-slashing-dealers/http://www.autoblog.com/2009/04/27/more-cuts-across-the-board-general-motors-to-slashing-dealers/#commentsFiled under: , , , ,



General Motors' spate of announcements this morning was bad news for enthusiasts (e.g. the shuttering of Pontiac) and even worse for GM's debt-for-equity swap (without a 90% take-rate the automaker is bound for CH 11). But for dealerships and workers, GM's re-revised restructuring plan is going to hurt... hard.

In addition to focusing on GM's core brands - Chevrolet, Cadillac, Buick and GMC - and thus jettisoning Saab, Saturn and Hummer by the end of 2009, GM announced plans to cut its dealerships by 42% by the end of 2010. By the end of next year, GM's dealer base will be reduced from 6,246 (in 2008) to 3,605, 500 more than originally proposed in the automaker's February 17 plan. According to GM's release, "The goal is to accomplish this reduction in an orderly, cost-effective, and customer-focused way. This reduction in U.S. dealers will allow for a more competitive dealer network and higher sales effectiveness in all markets." However, with the Oldsmobile debacle still fresh in many minds, it's going to be a long and expensive row to hoe for the General.

On the manufacturing front, GM plans to reduce the number of assembly, powertrain and stamping plants in the U.S. by 28% by the end of 2010 and to 31% by 2012, cutting production centers from 47 to 34 by the end of next year, and finally to 31 two years later. Once complete, hourly workers in the U.S. will be reduced from 61,000 to 40,000 in 2010 (34%) and then cut by an additional 2,000 by 2011. GM also plans to cut both salaried employees and executive employment as it moves forward, but hasn't disclosed the amount of reductions yet.

While all these cuts are necessary (and have been for almost three years), there's an overarching sense that GM is flailing in the lead-up to its June 1 government-imposed deadline. We expect even more details to follow in the coming month, but in the meantime, make the jump for the General's full carnage-laden press release.

[Image: Bill Pugliano/Getty]

Continue reading More cuts across the board: General Motors to slash dealers, plants and employees

More cuts across the board: General Motors to slash dealers, plants and employees originally appeared on Autoblog on Mon, 27 Apr 2009 13:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>cutsdealersgeneral motorsGeneralMotorsgmmanufacturingplantsreductionworkersMon, 27 Apr 2009 13:33:00 EST<![CDATA[GM/UAW concession talks commence]]>http://www.autoblog.com/2009/01/06/gm-uaw-concession-talks-commence/http://www.autoblog.com/2009/01/06/gm-uaw-concession-talks-commence/http://www.autoblog.com/2009/01/06/gm-uaw-concession-talks-commence/#commentsFiled under: , , , ,

To ensure long-term viability, General Motors has pledged an arm and a leg (and maybe an eye) to satisfy conditions imposed by the federal government after the automaker received billions in taxpayer-funded loans. In addition to reducing debt and condensing the number and type of vehicles it produces, GM has promised to revamp labor contracts -- not an easy task. With that in mind, GM is entering historic talks and negotiations this week with the United Auto Workers, bondholders, dealers and others to help transform the automaker into a lean and profitable company.

It's a monumental task, but GM needs to undertake serious financial concessions to implement their restructuring plans. These include eliminating up to 31,000 jobs, closing down nine assembly plants, shutting 1,750 dealerships, and possibly eliminating the Saturn brand. Of course, they also have to renegotiate the 2007 UAW labor contract with GM. The UAW has resisted wage and benefit cuts, but without union compromise GM could be forced to file bankruptcy... something none of the players wants to see happen.

[Source: Detroit News]

GM/UAW concession talks commence originally appeared on Autoblog on Tue, 06 Jan 2009 16:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ConcessionscontractcutsGeneral MotorsGeneralMotorsGMlayoffnegotiationssaturntalksUALUAWTue, 06 Jan 2009 16:33:00 EST<![CDATA[As sales slump, Toyota cuts bonuses and vehicle production]]>http://www.autoblog.com/2008/12/02/as-sales-slump-toyota-cuts-bonuses-and-vehicle-production/http://www.autoblog.com/2008/12/02/as-sales-slump-toyota-cuts-bonuses-and-vehicle-production/http://www.autoblog.com/2008/12/02/as-sales-slump-toyota-cuts-bonuses-and-vehicle-production/#commentsFiled under: , , ,

Management bonuses will be slashed 10 percent at Toyota as a result of the global economic slowdown. About 5,000 managers will take cuts as the Japanese automaker reels from falling global sales that are hitting its local market hard. Toyota vehicle sales in Japan dropped 27 percent in November (excluding 660cc minivehicles) and Lexus sales dipped 24 percent -- mirroring the same sales issues that both brands are having in the United States. As a result, the Japanse Juggernaut will halt production for two days on one of the Tahara production lines manufacturing the Lexus LS, GS and IS models, which will prevent about 5,000 luxury cars from being built, and idle another factory in southern Japan for two days, as well. Toyota is also expected to announce lower sales and production estimates at its year-end press conference that happens at the end of this month. That news will follow the 1 trillion yen ($10.7 billion) yanked just last month from its annual operating profit forecast.

[Source: Automotive News, subs. req'd]

As sales slump, Toyota cuts bonuses and vehicle production originally appeared on Autoblog on Tue, 02 Dec 2008 19:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Annual operating profitAnnualOperatingProfitbonusescustscutsfactory closingFactoryClosingLexus salesLexusSalespaycutssalesslowdownToyotaTue, 02 Dec 2008 19:01:00 EST<![CDATA[GM to cut 20% in overall white collar costs, cut truck production by over 300k]]>http://www.autoblog.com/2008/07/15/gm-to-cut-20-in-overall-white-collar-costs-cut-truck-productio/http://www.autoblog.com/2008/07/15/gm-to-cut-20-in-overall-white-collar-costs-cut-truck-productio/http://www.autoblog.com/2008/07/15/gm-to-cut-20-in-overall-white-collar-costs-cut-truck-productio/#commentsFiled under: , , , ,

GM CEO Rick Wagoner announced sweeping organizational challenges designed to cut costs by $15 billion by the end of 2009. The Detroit automaker is looking reduce costs in an increasingly difficult market that could drop to 14 million units per year with fewer SUVs and trucks leaving dealer lots. Among the cost cutting measures, GM plans on reducing organizational costs by $10 billion, and another $5 billion by selling assets and working in the capital markets. Here are some of the highlights from the press conference:

  • Reduce salaried employee expenses by 20 percent through retirements, voluntary separations, buyouts, and other separation initiatives
  • Cut all salaried retiree health care after age 65, and use the over funded retirement fund to increase pension pay
  • No raises through 2009
  • Executive discretionary bonus elimination
  • Reduce sales and marketing expenses through reductions in events, motorsports, and ad spending
  • Cut truck production by 300k units by 2009
  • Reduce product development budget for 2009 to $7b by delaying launches of next generation trucks and SUVs and cutting V8 development
  • Increase spending on alternative powertrains
  • Push back blue collar retirement VEBA payment from 2008 to 2010, saving $1.7b
  • Eliminate stock dividend payouts effective immediately to save $800m
  • Raise $4 billion to $7 billion through asset sales and financing using some $20 billion in assets as collateral
  • Continue review of the Hummer brand

GM is under quite a bit of pressure right now, and with stocks sliding to $9.63 per share, the General didn't have the luxury of waiting until its August shareholder meeting to unveil its plans. Now it's up to Wall Street to determine whether $15b in savings is enough to turn things around.

UPDATE: Wagoner addressed GM employees and shed some light on what products are in the pipeline.

Continue reading GM to cut 20% in overall white collar costs, cut truck production by over 300k

GM to cut 20% in overall white collar costs, cut truck production by over 300k originally appeared on Autoblog on Tue, 15 Jul 2008 09:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>breakingcutsgmgm cutsGmCutsTue, 15 Jul 2008 09:25:00 EST<![CDATA[Chrysler to make cuts in fleet sales in '08]]>http://www.autoblog.com/2008/01/05/chrysler-to-make-cuts-in-fleet-sales-in-08/http://www.autoblog.com/2008/01/05/chrysler-to-make-cuts-in-fleet-sales-in-08/http://www.autoblog.com/2008/01/05/chrysler-to-make-cuts-in-fleet-sales-in-08/#commentsFiled under:

Chrysler has looked deep into it soul and decided to join the General and FoMoCo in an attempt to reduce its reliance on fleet sales. Chrysler's Vice Chairman, Jim Press (that still doesn't sound right), alluded to the reduction during a conference call regarding December sales figures and said, "you have to stay out of the 30-percent range and into the 20s." Where in "the 20s" was unspecified, but with vehicle sales expect to continue their decline this year, any reduction of income could hurt the automaker. However, Press went on to say that he expects a "very small increase" in retail sales during '08 and a plan is underway to increase the value-per-dollar quotient of Chrysler's brands by offering more features for less cash.

[Source: CNN Money]

Chrysler to make cuts in fleet sales in '08 originally appeared on Autoblog on Sat, 05 Jan 2008 09:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler fleet salesChryslerFleetSalescutsfleet salesFleetSalesSat, 05 Jan 2008 09:02:00 EST<![CDATA[Ford might increase cuts in slow economy]]>http://www.autoblog.com/2007/09/18/ford-might-increase-cuts-in-slow-economy/http://www.autoblog.com/2007/09/18/ford-might-increase-cuts-in-slow-economy/http://www.autoblog.com/2007/09/18/ford-might-increase-cuts-in-slow-economy/#commentsFiled under: ,

Mark "the Mullet" Fields dropped some small ordinance during an interview with the Wall Street Journal today, saying that if the slow U.S. economy puts the automaker at risk of not meeting its financial goals for the next two years, it may increase the rate at which it will cut costs.

To quote Ford's executive veep of North and South American operations, "There's more risk than there is opportunity going forward." Fields maintains that the combination of the turmoil-ridden home mortgage market, weak job numbers and increased debt among U.S. borrowers might cause Ford to slow production down in the fourth quarter to avoid excess inventory, a problem that plagued Chrysler last year around this time.

The adjustments are a last resort, and according to Ford, it's currently on track to meet its goals as long as things stay stable. Nevertheless, you can bet Fields has his fingers crossed.

[Source: Wall Street Journal]

Ford might increase cuts in slow economy originally appeared on Autoblog on Tue, 18 Sep 2007 14:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cutsdebtfinancial goalsFinancialGoalsfordjobsmark fieldsMarkFieldsTue, 18 Sep 2007 14:33:00 EST<![CDATA[Whoa, Nellie: GM reigning in production at 3 SUV plants]]>http://www.autoblog.com/2006/12/07/whoa-nellie-gm-reigning-in-production-at-3-suv-plants/http://www.autoblog.com/2006/12/07/whoa-nellie-gm-reigning-in-production-at-3-suv-plants/http://www.autoblog.com/2006/12/07/whoa-nellie-gm-reigning-in-production-at-3-suv-plants/#commentsFiled under: , , , , , ,

With the sales of the new GMT900 platform SUV's still strong, GM is looking ahead to assure that future inventory doesn't overrun demand as it has in the recent past. The company announced today that it will be reducing production in three plants that produce the GMC Yukon, Cadillac Escalade, and Chevrolet Tahoe from 56.5 vehicles per hour to a nice even 50. The plants will remain closed for the first half of January, extending the normal 1-week holiday shutdown to three, and then resume production at the reduced rate.

GM expects some staffing adjustments to occur, but has not yet determined how the slow down will affect employees at each assembly plant, which are located in Janesville, WI, Arlington, TX, and Silao, Mexico.

[Source: Automotive News]

Whoa, Nellie: GM reigning in production at 3 SUV plants originally appeared on Autoblog on Thu, 07 Dec 2006 18:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Cadillac EscaladeCadillacEscaladeChevrolet TahoeChevroletTahoecutsGeneral MotorsGeneralMotorsGMGMC YukonGmcYukonGMT900productionSUVThu, 07 Dec 2006 18:31:00 EST<![CDATA[More workers going under the knife before benefits cut]]>http://www.autoblog.com/2006/04/19/gm-employees-rushing-to-get-operations-before-losing-health-bene/http://www.autoblog.com/2006/04/19/gm-employees-rushing-to-get-operations-before-losing-health-bene/http://www.autoblog.com/2006/04/19/gm-employees-rushing-to-get-operations-before-losing-health-bene/#commentsFiled under: , ,

According to the International Herald Tribune, Michigan physicians, hospitals and medical insurers have noted an increase in the number of elective surgery requests since last year. Replacements for knees, hips and shoulders were up by 20 percent at the Henry Ford Health System alone.

A little super sleuthing revealed that UAW workers and their families are rushing to have procedures performed before the possible cuts in their health care benefits take effect. A knee operation, for example, would cost $28,000 sans the insurance.

A spokesperson for GM stated the automaker has noticed no increase in elective procedures.

[Source: International Herald Tribune]

More workers going under the knife before benefits cut originally appeared on Autoblog on Wed, 19 Apr 2006 10:38:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>benefitscutselective surgeryElectiveSurgeryhealth careHealthCarehospitalsurgeryUAWunionWed, 19 Apr 2006 10:38:00 EST