Reply #32: GM to set tougher targets for revamp

[Demeter]

http://www.ft.com/cms/s/0/f8d69d10-fc51-11dd-aed8-000077b07658.html



General Motors will on Tuesday unveil aggressive restructuring targets as it seeks to convince US politicians and taxpayers it can survive the global car industry’s deepening downturn.

In revamped viability plans taking into account tougher business conditions than expected, GM and its smaller rival Chrysler will make clear they need more government support than the $17.4bn approved in December. The government was set to release $4bn of that money on Tuesday.

GM will say that over the next 18 months it plans to speed up plant closures, close dealerships and sell or restructure some of its eight brands, notably Hummer, Saab and Saturn.

Chrysler’s latest strategy will outline $3.8bn in cuts to fixed costs, higher than December’s estimate of $3.1bn. It now estimates that it will cut annual production capacity by 1.3m vehicles, up from the 1.2m outlined.

The targets are in part a result of the deterioration in global car markets in the two months since the troubled carmakers secured the loans. GM’s US sales were down 49 per cent year-on-year in January, and Chrysler’s fell 55 per cent.

Both companies were in talks on Monday with the United Auto Workers’ union on securing cuts in labour costs. Talks stalled last week over the two carmakers’ contributions to employee-managed healthcare funds for retirees. GM’s bondholders are resisting its push to cut its unsecured debt by two-thirds, a condition of the bail-out. GM, Chrysler and the UAW declined to comment on the talks....


SOMEBODY PLEASE EXPLAIN TO ME WHY THE AUTO MANUFACTURERS ARE WATERBOARDED, WHILE THE BANKERS DINE AT THE RITZ? PLEASE?

WHERE ARE THE STRICT GUIDELINES FOR RESTRUCTURING BANKING OPERATIONS, INCLUDING PROHIBITING CDOS AND SIVS AND ALL THAT ALPHABET CRAP?

WHERE ARE THE MOVES ON EMPLOYEES, SQUEEZING CONCESSIONS OUT OF THE CEOS AND THEIR IMMEDIATE STAFF? TAKING BACK BENEFITS, ETC, ETC?

ARE GM AND CHRYSLER ORPHANED STEP-CHILDREN?