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