GM employees... Keep your heads down. Wagoner Speaks 20% gone

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080715/AUTO01/807150401

well, there is a surprise.

conference going on now.. we'll find out more soon.

But looks pretty grim. Development and Engineering budgets slashed.. How they going to build small cars now? bring over euro ones?

Been there, done that. And have one more cut coming in a couple of weeks.

They'll survive.

ignorant wrote: conference going on now.. we'll find out more soon. But looks pretty grim. Development and Engineering budgets slashed.. How they going to build small cars now? bring over euro ones?

EXPENSIVE Euro ones

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqlTJ7mMYM1I&refer=home

If GM thinks importing Euro cars into the US is a good idea it just proves that the Chief Officers of the company make too much money and are disassociated with reality.

Yes they need to do this.. but....

Geez.. what a bag of carp. Poor management and forecasting lead to this. 20% on the street. That's going to be a huge num to drive the economy deeper into a hole.

I think Wagoner has got a pretty comprehensive plan here that doesn't just involve laying off 20,000 workers. I think he'll turn the brand around.

I wonder what the executives over at Ford are doing right now . . . they never seem to have such comprehensive plans. Usually, it's just, "We are losing too much money with Jaguar. We're going to sell the brand. Now we'll only lose $1.2 billion a year. We're happy with that."

ahh it's been updated.. When I first read the article it said.. 20% white collar jobs GONE! Now it says 20% white collar expenses...

I still wouldn't be so sure about how they go about getting those expenses down.. Voluntary separations.. HA.. like jumping off a sinking ship?

who would have thought that the rank and file members wouldn't be the ones cut?

Things are looking pretty grim for the auto industry in general right now.

Hope we're headed for an up swing soon.

mad_machine wrote: who would have thought that the rank and file members wouldn't be the ones cut?

Depends on how you determine "rank and file"

How long now has this huge increase in fuel prices been predicted? I know at least several years, probably longer within the industry. It seems funny to me that GM was caught off guard, as one guy said a couple of days ago in an interview. Personally I don't believe it, they simply tried riding the truck-SUV wave too long and are now paying the price.

GM certianly has the talent and resources to pull through this, lets hope they take the proper paths. Some of their cars are huge improvements, the C6 is awesome, and the Colbalt is not that bad either.

Of course its not just GM, most companies that have relied on trucks are feeling the pinch to a much greater degree than the others. Our local Toyota dealer has lines and lines of Tundras and Sequoias they can't move, even at hugely discounted prices. Meanwhile over at Honda, there's not a Fit to be seen, and not many Civics. They're selling them as fast as they can get them on the lot.

Just like the early '70's, I think we're seeing a big change in the way Americans buy cars, and I think it will last a while. The big question now becomes, which companies will adjust the fastest and return to profitability the fastest.

I'm getting long here, but the one benefit of bringing a Euro car over here is the reduced lag time for production. They'd certainly be a interim car, but it would give them something to sell much faster.

GM is selling Cobalts as quickly as they can build them, as well as Malibu's. And with little or no incentive. These cars will soon become profitable, and truck production will dwindle. Hopefully GM can lower truck production without spending all of their cash.

racerdave600 wrote: The big question now becomes, which companies will adjust the fastest and return to profitability the fastest.

Honda.

Maybe some of those laid-off workers can get a job in the ~New VW Plant~ in Tennessee

No pay raises for salaried workers through the end of 2009. This blows. The little guy gets the short end.

• No discretionary bonuses for executives. I really feel for these guys. How can they keep up their country club memberships?

aeronca65t wrote: Maybe some of those laid-off workers can get a job in the New VW Plant in Tennessee

We were hoping that was coming to Alabama.

pete240z wrote: No pay raises for salaried workers through the end of 2009. This blows. The little guy gets the short end. • No discretionary bonuses for executives. I really feel for these guys. How can they keep up their country club memberships?

Whoever was in charge of the new Malibu, and Saturn's new offerings needs a bonus!

Can't speak for the Saturn but I did drive a new Malibu rental car the other day. It felt surprisingly well bolted together and well laid out (although not completely up to Honda standards). Long term it may show some flaws but the initial impression I got was good.

jwdmotorsports wrote:

racerdave600 wrote: The big question now becomes, which companies will adjust the fastest and return to profitability the fastest.

Honda.

Honda is excluded in this, as they can sell anything at anytime. They're not going to have to return to profitability, as they're probably already there! Although I think the Fit's fuel mileage is a little low considering the size of car it is, they did bring out the right car at the right time.

Osterkraut wrote:

pete240z wrote: No pay raises for salaried workers through the end of 2009. This blows. The little guy gets the short end. • No discretionary bonuses for executives. I really feel for these guys. How can they keep up their country club memberships?

Whoever was in charge of the new Malibu, and Saturn's new offerings needs a bonus!

You can thank Opel 10 years ago...

racerdave600 wrote: Honda is excluded in this, as they can sell anything at anytime. They're not going to have to return to profitability, as they're probably already there! Although I think the Fit's fuel mileage is a little low considering the size of car it is, they did bring out the right car at the right time.

I disagree with the first line: Honda hasn't shown much of an ability to sell Ridgelines, at least not where I live. But they have been doing pretty well at selling their small cars. Their current lineup seems to be just about perfect for conditions these days.

http://blog.cardomain.com/blog/2008/07/gm-restructurin.html

skruffy wrote:

Osterkraut wrote:

pete240z wrote: No pay raises for salaried workers through the end of 2009. This blows. The little guy gets the short end. • No discretionary bonuses for executives. I really feel for these guys. How can they keep up their country club memberships?

Whoever was in charge of the new Malibu, and Saturn's new offerings needs a bonus!

You can thank Opel 10 years ago...

Yeah, but bringing them over was a "no duh" moment that somebody probably had to fight for.

MadScientistMatt wrote:

racerdave600 wrote: Honda is excluded in this, as they can sell anything at anytime. They're not going to have to return to profitability, as they're probably already there! Although I think the Fit's fuel mileage is a little low considering the size of car it is, they did bring out the right car at the right time.

I disagree with the first line: Honda hasn't shown much of an ability to sell Ridgelines, at least not where I live. But they have been doing pretty well at selling their small cars. Their current lineup seems to be just about perfect for conditions these days.

I just started seing the "Honda year-end clearance sale" commericals last night. Kinda strange...they mention all kinds of things about the great gas mileage their cars get & how now is a "great time to buy a Honda", but no where do they actually mention lower prices! lol.