More cuts at GM are not going to help

General Motors (NYSE: GM) may be faced with cutting thousand of white-collar jobs and selling or closing some of its brands. According to The Wall Street Journal, "Management may also present the board with options for raising additional cash to help GM make it through the downturn."

All of these plans, except raising money, may be a little late for shareholders. GM's stock has dropped over 75% from its 52-week high and now trades just above $10. Changing over from a product mix that is heavy in trucks to one that emphasizes light sedans with good gas mileage could take the better part of a couple of years. While GM may make money outside the U.S., that does not offset huge losses in its home market.

GM was caught flat-footed when oil prices spiked up. That might be forgiven, if competitors like Honda (NYSE: HMC) had not made certain that they had large numbers of fuel-efficient vehicles in their product mix. GM must now attack a market that is already occupied by successful competition.

With a $6 billion market cap, if GM has to raise $10 billion, the stock price is going way, way down.

Douglas A. McIntyre is an editor at 247wallst.com.

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