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Job and brand cuts from GM on the horizon

FOLLOW UP: Tony Cervone, a GM spokesperson, has told Bloomberg that HUMMER is the only brand the General is considering selling or closing.

The Wall Street Journal is reporting that General Motors is looking to cut thousands of white-collar jobs and sell, or stop production, of some if its brands. The General has supposedly set 2010 as a target for its return to profitability, but the automaker has never announced any details on how it plans to achieve that goal.

GM's management team will be meeting with the board early next month to discuss raising additional cash, and that could mean seriously pruning GM's bloated brand portfolio. HUMMER is supposedly already on the block, but Chevrolet and Cadillac – brands at the core of GM's business – are likely safe from the ax. However, Buick, Pontiac, Saab and Saturn, which haven't fared well during the biggest U.S. sales slump in 15 years, could possibly be sold or killed completely.

While it deserves note that all of this information comes from unnamed WSJ sources, GM's recent stock plunge and abysmal June sales numbers means something has to be done, and quick. If that entails cutting underperforming brands, so be it -- nostalgia be damned.

[Source: WSJ (Sub. Req.) via Reuters]

No camera phones allowed! GM plant electrician fired for Camaro pics


click above to view high-res gallery of the pics in question

Whenever you walk into an automaker's factory or engineering facility, there are signs prominently displayed letting everyone know that cameras and camera phones are prohibited. Unfortunately for an electrician at the General Motors Assembly plant in Oshawa, Ontario where the Camaro is due to begin production late this year he ignored the warning. Worse yet, he took some shots inside the body shop where pilot production units were making their way down the line and then showed them to his kids. The youngsters evidently extracted said photos and shared them with the world.

The electrician with 28 years of seniority has apparently now learned that those signs were not an empty threat. Even though there is nothing particularly secret about how car bodies are welded together or about how the new Camaro looks, GM and other manufacturers are serious about those policies. This employee who apparently just wanted show off a bit for his kids is now unemployed. Was it worth it? If you're going to whip out the camera phone, you might want to be a little more discreet about how you share the pics.

Gallery: 2010 Camaro in Production


[Source: LeftLane News]

Kia marketing execs leave company because of ... Millard Fillmore?



Next Monday is President's Day, and a lot of workers will get the day off. Some other employees, like former Kia execs Len Hunt, CEO of Kia Motors America, and Ian Beavis, VP of marketing, will have more than just the day off: they recently ended their employment with Kia over what's being portrayed as a case of humor that got lost in translation.

To promote its President's Day sale, the company ran an ad featuring "unheard of" President Millard Fillmore, "best remembered as the first president to have a running-water bathtub." Cue the segue into the "unheard of" deals that Kia dealers would be offering during the long weekend. And to commemorate the event and the president, Kia made soap-on-a-rope busts of Mr. Fillmore, some of which were handed out during a press event at the Chicago Auto Show. And, uh... yeah... that's it. Unheard-of president, unheard-of deals, and soap.

But Byung Mo Ahn, chairman and group CEO of Kia Motors America and Kia Motors Manufacturing Georgia -- and the man who hired and promoted Len Hunt -- apparently didn't find the soap-on-a-rope commercial that funny. Word is that Ahn wants more serious commercials focusing on Kia's quality. So even though Hunt and Beavis presided over a solid sales story and growing brand awareness, and Hunt was especially well-liked by dealers, the two men are now probably on their way to other automakers. And Kia commercials are about to get very boring. Our sympathies to Hunt and Beavis, yet if nothing else, at least now Millard Fillmore has another claim to fame. Thanks for the tip, Keith!

[Source: Ad Age]


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