Explain Gm's restructuring plan

Can someone who knows more than me explain a few details of GM's restructuring plan in layman's terms?

I see that they are going to close Saturn, Hummer, and Saab. I also see that they intend to cut 47,000 jobs.

How does this work in the real world?

I'm assuming that those job cuts are related to plant closings, dealership closings, and re-sizing existing lines. And some are overseas.

But I'm also assuming that they will have assets to sell, like unused manufacturing facilities.

So, someone's gonna buy those plants, use them for something, and need employees to run the joint.

So, will those jobs actually go away, or will they just be off GM's books, and someone else will hire a few of them?

I realize the correct answer is a blend, but I'm wondering what the real impact will be to the US economy from this change. I don't hear anyone crying yet about the loss of 47,000 jobs.

Personally I think it's going to be a horrendous blow to the economy.

Where these jobs will end up being lost is in the few areas that can not support the losses and once those communities go under there will be a tidal effect eroding the states and eventually the government.

Close them down the country crashes, keep them open the country crashes... it is going to get VERY ugly really soon.

I was listening to NPR the other morning and the quote I remember was... "What is the government going to do with a transmission plant in Livonia" That was in response to a question about the government buying those plants.

We're losing >500,000 jobs a month. 47,000 jobs phased out in a slow releases are just a minor incremental change...

ignorant wrote: I was listening to NPR the other morning and the quote I remember was... "What is the government going to do with a transmission plant in Livonia" That was in response to a question about the government buying those plants.

Perhaps the could continue to build transmissions, a variety of 5 and 6 speeds and issue transmission stamps so that those of us who can't afford to by our own in these uncertain times will still get the gearboxs we deserve.

SVreX wrote: So, someone's gonna buy those plants, use them for something, and need employees to run the joint.

I wouldn't count on that.

There are lots of textile plants sitting empty here in the southeast. I also drive by the empty Ford plant near Atlanta every now and then.

ignorant wrote: We're losing >500,000 jobs a month. 47,000 jobs phased out in a slow releases are just a minor incremental change...

Sad we've all become so jaded to the losses, but you are right... the 47,000 over that timeframe is NOTHING compared to the general US and Global economic collapse as a whole. Besides which I think that number includes (at least some) cuts already made.

Sure doesn't feel like nothing to those 47,000 families, I know

Gearhead_42 wrote:

ignorant wrote: We're losing >500,000 jobs a month. 47,000 jobs phased out in a slow releases are just a minor incremental change...

Sad we've all become so jaded to the losses, but you are right... the 47,000 over that timeframe is NOTHING compared to the general US and Global economic collapse as a whole. Besides which I think that number includes (at least some) cuts already made. Sure doesn't feel like nothing to those 47,000 families, I know

It is sad when a laid off guy like myself says something like that.. huh?

jwdmotorsports wrote:

SVreX wrote: So, someone's gonna buy those plants, use them for something, and need employees to run the joint.

I wouldn't count on that. There are lots of textile plants sitting empty here in the southeast. I also drive by the empty Ford plant near Atlanta every now and then.

Yeah, there are already former GM (and probably others) plants that have been virtually empty or at least underutilized in Michigan for a decade or more.

Hey svrex...

read this maybe it will help

http://jalopnik.com/tag/gm-bankruptcy/?id=5155616

I read a mojority of the Jalopnik article including the rebuttal from GM as to why Bankrupcy is a bad idea, but couldnt bring myself to read the rest. Its completely obvious that GMs insistance that a gov't "loan" (which we all know will NEVER be paid back in full)is better than Chapter 11 is simply the heads at GM floundering to try and keep their jobs. If the company goes into chapter 11 and a majority owner of GMs debt (GM stock/bonds held outside the current ownership) emerges as the new ownership of the company, its is almost definite that the current top MGT will be fired. I am not sure how uncle sam, in all of his infinite wisdom and foresight, can allow a company who has publicly squandered its assets to tell us how they will allow the gov't to help them back to health. It seems to me that we should be the ones telling them exactly how this whole thing will go down, and they can either take it or leave it. Im not so sure I want them to have any say.

-end rant