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Old 18th February 2009, 10:54   #1
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Default complete restructuring plan of General Motors presented to US congress

link to download the 117 page report:
http://preprodha.ecomm.gm.com:8221/u.../docs/plan.pdf
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Old 18th February 2009, 11:23   #2
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GM is eliminating 47000 jobs and chrysler 3000 jobs !
Saturn brand will be eliminated and Pontiac might go ultimately too.
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Old 18th February 2009, 12:17   #3
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their plan is just about cost cutting. Nothing concrete. I was wishing for something more logical and viable in the long run.
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Old 18th February 2009, 17:57   #4
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Had a brief look at this article, nothing major. Still they are claiming that a healthier GM = good US economy. Moreover, its just fine language and nothing so groundbreaking plan available. When the CEO were shown the door because they came in jets, the next time from GM the visit was to be done in Chevy Volt all electric car. Was nothing more than a stunt. GM off late has good tech and good products, but they are 10 years late to the market for all this.

Also they have mentioned that repayment will start in 2012 and they need more funding as the economy is not expected to improve. Very very bad status. Saab will now be going along with how many I dont know.
Looks like they was fewer brands and the four to remain will be Chevrolet, Cadillac, GM and Buick. I wonder what will happen to others ( I am not exactly sure which is going to remain and which is going ).
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Old 18th February 2009, 19:07   #5
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@Mods : If this post is found inappropriate for this thread, please move it to the appropriate thread.

This news gets one more support.

Source : GM seeks $30 billion in total aid, plans to cut 47,000 jobs this year - worldcarfans

Article :
Quote:


General Motors announced yesterday they need $2 billion in immediate funding, and up to $30 billion in the long run, in order to fend off bankruptcy and possibly become profitable within two years.. The statement was released as GM submitted their 100-page viability plan to the U.S. Treasury.

In addition, GM expects to cut out 47,000 jobs this year from all of their global operations, and 20,000 U.S. jobs over the next three years. They would also shutter 14 U.S. plants over that time period. GM's plan is contingent on concessions from unionized labor, retirees, bondholders, and other stakeholders, many of which have not been agreed upon.

The General's viability plan was a requirement of loan conditions set out when the company took a U.S.-backed bailout loan at the end of 2008.

To date, GM has received $13.4 billion in loan money. This figure is included in the $30 billion total. Executives say they need $2 billion by March, $2.6 billion in April, up to $7.5 billion more if the market stays in a slump, and an additional line of credit.

GMs plan is comprehensive, responsive and achievable. It is based on conservative assumptions and is flexible enough to adapt to changing circumstances such as those weve seen since Dec. 2. We have a lot of work in front of us but were confident that our plan will result in a sustainable and profitable General Motors, said General Motors CEO Rick Wagoner.

Chrysler was also required to submit their own plan to the Treasury. Their plan calls for another $5 billion in government-backed loans, in addition to the $4 billion already received. Chrysler says that if it is forced into bankrupcy, the overall cost could reach $25 billion, including 300,000 jobs lost, and the collapse of their 3,000+ dealers.

The doomsday scenario for GM is also bankruptcy, which could be triggered by the U.S. government immediately calling in the loans that GM has already received. Wagoner says it could cost $100 billion to shore up the company's bottom line and get it out of a court mandated restructuring.

However, that scenario might be keeping Wagoner's view of what it would take to keep GM the conglomerate that it is.

Buyers have already stepped forward to express interest in purchasing Hummer and Saab, while Saturn is believed to be on the auction block as well. Other GM labels, like Opel, and possibly Cadillac, could likely be sold off to add an influx of cash to the company. Ford used this reasoning when they sold off Jaguar, Land Rover, and Aston Martin over the last two years. Ford has not taken a bailout loan from the U.S. government.

If granted the additional funding, GM says they could return to profitability in two years.

Unfortunately for GM, their is also a substantial political risk involved. The administration of new U.S. President Barack Obama has the final say on granting GM their influx of cash. For Obama, this could prove lethal to his popularity, as Americans grow more and more weary of seeing their money given out in huge lump sums. If Obama gives out the money, GM could return to profitability around the time when campaigning begins for the 2012 elections.

On the other hand, GM could go bankrupt during the campaigns, which would make many Americans question Obama's leadership on the issue. The government has said they will make a decision after having the opportunity to read through the filings.


More about Chrysler.

Source : Chrysler Seeks $5 Bllion More in Fed Loans - worldcarfans

Article :
Quote:
In concert with its cross-town rival and fellow bailout recipient GM, Chrysler is also asking the US government for more money to keep it in business.

Chrysler has asked for an additional 5 billion US dollars in loans, on top of the 4 billion it has already received. Chrysler claims that without the loans, its operating cash will dip below the dangerous level of 2.5 billion and force it to declare bankruptcy. The same situation it was in last December when it petitioned the government for the initial bailout payment.

"Bankruptcy would cost a lot more money and cause tension and concern for dealers and customers, and it's not necessary," says Robert Nardelli, Chrysler CEO.

Chrysler claims its surest path to viability is in its recently founded alliance with Fiat, in which the Italian automakers will receive up to 35 percent of Chrysler equity in exchange for investments in technology and production.

The Detroit automaker has also promised to cut costs by 700 million US dollars per year by eliminating 3,000 jobs and cutting a shift at an undisclosed production plant.

Chrysler will also be eliminating the Chrysler Aspen and PT Cruiser and the Dodge Durango after having already discontinued the Chrysler Crossfire and Pacifica and the Dodge Magnum.

Chrysler is experiencing a severe collapse in sales. Unit sales were down 30 percent for 2008. January sales for this year were down 55 percent compared to January 2008.
This was the shocking news to me. Dodge Durango being discontinued ? Once upon a time IIRC, it was head to head with Ford Explorer and Ford Explorer was at that time the best selling SUV.
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Old 18th February 2009, 22:59   #6
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47K jobs to be cut! Holy molly!!!
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Old 19th February 2009, 14:28   #7
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GM's gonna need a lot more to get back to profitability and self-sustainability. Their focus for the next 36 months ought to be:

1. Better cars! The most basic requirement of any car manufacturer is to sell cars that customers really want.

2. Effective management : They need to revamp their entire corporate culture. A herculean task by any standard. Get quick on its feet. A sharp administrator on the lines of Carlos Ghosn at the top. Tough decisions need to be taken. The "please everyone" attitude won't work anymore.

3. R&D, R&D and more R&D : Competitive Small / medium size cars. State of the art tech.

4. Quality : Now a given with the Japanese & the Korean. Still can't take GM for granted on this crucial factor, especially once the cars cross 50,000 miles / 80,000 kms. Plus, many of their cars are found lacking in feel / finesse as compared to other manufacturers.

Resurrecting GM is an uphill task, no doubt. I don't think the current management has it in them.
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Old 19th February 2009, 16:00   #8
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The GM management is inept at best. They have been cost cutting and reducing headcount for quite some time now, but they seem to show no strategy to put exciting products in the market place. What's the point in only cutting costs and not selling anything?

It's time Rick Wagoner is booted out.

It's also time that GM put into production and sell to the general public all the great hybrid technology they "claim "to have been researching and prototyping.

My guess is that this is just another 30 bil down the drain if approved
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Old 20th February 2009, 11:10   #9
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Quote:
Originally Posted by sanjayatarizona View Post
They have been cost cutting............

.......What's the point in only cutting costs and not selling anything?
The problem is, only area where they really cut costs is on R&D, product quality and supplier billing. All of which result in a truly cost-cut car!

Quote:
My guess is that this is just another 30 bil down the drain if approved
Totally agreed. Unless GM has a revolutionary plan (read : doing most things differently than they have), it is 30 B down the tubes. The way I see this situation, it is only delaying the inevitable. What was that saying? Throwing good money after bad?
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Old 20th February 2009, 11:25   #10
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Cost cutting will not yield immediate results. I think they have been scaring everyone about going bust and are trying to get help. They even think that by 2012 they will have good cash balance.
The problem with these guys is that they dont have a car that can compete with the Japanese in these times. They should have covered that end before going to compete in Hybrids, electrics etc., which are costly and cant be moved during these times.
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Old 6th March 2009, 12:08   #11
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BBC NEWS | Business | EU calls for crisis talks over GM

The European Commission has called for a crisis meeting among EU states hosting General Motors (GM) plants.
EU Industry Commissioner Guenter Verheugen said that the way GM was "dealing with the issue of Europe is not acceptable".
Earlier, the troubled carmaker's auditors said there was "substantial doubt" about the ability of General Motors to stay afloat.
Last week GM posted a $30.9bn (21.9bn) loss for 2008.
It also warned that 2009 was set to be "challenging".
Shares in General Motors fell more than 15% in New York trading.
European worries

"We expect GM to disclose everything"
Guenter Verheugen, EU Industry Commissioner


Earlier this week, GM's top executive warned the European divisions of General Motors (GM) could collapse within weeks without European governments' help - costing up to 300,000 jobs.
Chief operating officer Fritz Henderson also said governments should step in immediately to ensure GM Europe did not run out of money by April or May.
Mr Verheugen said: "We expect GM to disclose everything,
"What are their plans with their European daughter companies and locations? What are they doing with property rights, and especially is GM prepared to maintain responsibility for the European companies or not?"
He said that at the emergency meeting he wanted to find out "what the different member states that have GM sites are considering to do".
EU countries that have GM-related production plants include Britain, Belgium, Poland, Germany, Spain and Sweden. Some other EU states host suppliers.
Liquidation fear
Ongoing losses and the struggle to generate cash flow meant the firm's ability to continue as a going concern should be questioned, said the auditors.
The firm, which plans to cut 47,000 jobs, has said it might need another $22.6bn in government loans to survive.
It had already received $13.4bn in federal loans as it struggles in what analysts say is the worst vehicle sales market in 27 years.
GM said that its creditors had decided not to force the company to repay more than $6bn in loans following the auditor's warning, in order to let GM press the case for more government financial aid.
"The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern," auditors for Deloitte & Touche wrote in the annual report.
GM reiterated on Thursday that a bankruptcy filing could lead to liquidation, as the company would not have enough funds to finance its reorganisation.
Besides, consumers could be reluctant to buy bankrupt carmakers' vehicles, GM said.
According to GM, its February sales plummeted 53% from a year earlier, while its rival Ford posted a 48% drop.
The auditors' remarks reflect comments already made by the firm about its difficulties.
GM said in its annual report: "Our future is dependent on our ability to execute our viability plan.
"If we fail to do so for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the US bankruptcy code."

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Old 20th December 2012, 07:43   #12
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Default Re: complete restructuring plan of General Motors presented to US congress

GM, U.S. government to part ways!

The U.S. Treasury said on Wednesday it will sell 200 million shares in General Motors and divest the rest of its holdings over the next 12 to 15 months, ending public ownership of the company rescued by taxpayers in 2009. GM's $50 billion bailout comprised of nearly $7 billion in direct loans and $43 billion in bailout cash and bankruptcy aid.

Treasury announces its planned exit from GM, selling 200 million shares to the company at $27.50 per share, for about $5.5 billion, and undertaking to sell the remaining 300 million shares over the next 12-15 months, starting January.

http://www.autonews.com/article/2012...#ixzz2FYQN3rnE
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