General Motors Corporation (NYSE: GM) just keeps on announcing one run of layoffs after another. The U.S. automaker said this morning that it would give pink slips to another 5,000 employees in addition to ceasing contributions to some retirement plans for certain employees (which employees was not clear). The 5,000 layoffs would be for salaried positions only, similar to Chrysler's announcement.With rumors swirling that GM will actually buy Chrysler's auto operations, both automakers were completely unprepared for a steep drop-off in profit-heavy vehicles like SUVs and trucks as well as a large wave of consumer spending cutbacks that are affecting all industries as the U.S. charges through a recession.
GM will ultimately save a large wad of cash by slicing through its salaried worker ranks and by cutting retirement plan contributions, but it won't be enough to help it bury its huge liquidity problem. GM must be having cartloads of Tums and Alka-Seltzer trucked in in lieu of it examining every possible way to save a single penny from any corner it can. GM CEO Rick Wagoner told Bloomberg that "The global economic outlook remains very concerning... as a result, actions are being taken throughout GM's global operations to address our increasing need to conserve cash.'' Perhaps there's a $20 billion dollar bill under GM's mattress? It could use it.











Reader Comments (Page 1 of 1)
10-24-2008 @ 5:48PM
Jim Stengel said...
Is it any wonder that an industry which paid it's hourly employees 95% of their pay if they were laid off, and unrealistic, featherbedding work rules is finally going under. Of course, the first to suffer are the salary workers who had to translate management demands to a spoiled workforce. If you look at the former and current upper management, their pay packages and golden parachutes are still in tact--- gosh-- what a surprise!
10-25-2008 @ 1:06AM
Michael A. Grand said...
The World needs a new industry. The North American Automobile Industry (NAO: GM, Ford, Chrysler) is capable of pulling the USA out of this recession / depression. They will join together and retool for the next New World Industry of building Homes. A new Eco-technical design housing industry will evolve from the current economic world crisis.
10-24-2008 @ 8:45PM
alef said...
beleive me folks, GM.& CHRYSLER, ARE GETTING RID OF PEOPLE, TO SATISFY, CEREUBUS CAPITAL, A PRIVATE EQUITY FIRM THAT OWNS CHRYSLER.A bunch of rich snakes want to get richer, at the expense of thousands of employees at both companies. The same cereubus capital, that owns a stake in delta airlines, an northwest airlines, who is pushing for delta to buy out northwest airlines, at the expense of many many employees from both airlines to be laid off, the world should be aware of these deadly low life snakes at '''CEREBUS CAPITAL, they are slowly an carefully, getting rid of thousands of employees, to inrich, themselves, an there greedy executives, who else do they own, an does anyone know about them, other than myself.
10-24-2008 @ 9:25PM
Mike Sanders said...
I agree with Michael A. Grand, "The World needs a new industry. The North American Automobile Industry (NAO: GM, Ford, Chrysler) is capable of pulling the USA out of this recession / depression."
I would add that, the catalsyt might be to add Tesla to that list. Tesla has a great idea with their electric cars, but they simply do not have the experience, plant floor space and workforce to bring their idea to the common man. Six-figure cars are NOT going to be a hit, in a "recession." GM has a plant, right here in Missouri, the GM Wentzville Assembly Plant, that is capable of being reconfigured to produce millions of these electric cars, at a price which people all over the world can afford. That's right, all over the world! An American company with American workers, producing a world-class electric vehicle. The time is ripe, but the UAW and GM will need to remove their collective heads from their greedy butts. Sorry, but I am passionate about this. We can do something here, which no one else in the world can do and that's to mass-produce an electric car at a decent price and sell them here and abroad.
Michael Ray Sanders (former EDS'er on the GM Account)
10-26-2008 @ 2:44PM
Russell said...
The Complete auto industry needs to come back, to include all the parts that make them. When it does, the problems will fix themselfs. Just keep buying hondas etc.... Hey I have an idea, why don't we use our own people to create jobs. Bringing pensions back and health care.? but I guess no one will ever think about why we are here in the first place. Our goverment does not have the guts to make this happen. And to limit the living hell out of imports. Why because the big companies just do not care at all for the USA! And who ever gets in the way would be shot on site. Again no one has the guts to do the right thing!
10-27-2008 @ 9:55AM
bernie said...
Unions eventually destroy the company they work for. High wage demands have taught the asians how to build and out produce the USA.
10-27-2008 @ 6:16PM
Mike Sanders said...
Remember John Delorean... He designed the Camero and the Firebird and was GM's best designer, when it comes to body style. He would not attend cocktail parties, nor would he brown-nose the corporate-elite, at GM. He left GM and went to England to design a stainless-steel sports car, the Delorean. He needed money and lots of it to start his plant. So, along comes a person (?) who enticed (entrapped) John, by asking him to invest in a lucrative cocaine deal, as a silent-partner. John had no interest in drugs, but he did need money, in a big way. I can only wonder who might have wanted him hurt, really badly. This wasn't merely a "setup," it was one of the few cases of entrapment. Many cry "entrapment," but they were involved in the drug trade, prior to their getting arrested. John was not.