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Astonisheds? - USA - What GM cuts will mean for you
Detroit,MI,USA -The Detroit News, by Scott Burgess -Nov 22, 2005: -- GM's announcement is part of the company's effort to jump-start its faltering U.S. auto operations and lagging sales... Some key questions and answers:
Q: What will be the impact of GM's announcement?
A: Eventually, GM will close 12 facilities and cut 30,000 positions in North America -- about 5,000 more job cuts than the 25,000 the automaker originally predicted. That represents about 9 percent of the company's global work force. Most of the cuts will come through normal attrition and early retirement offers. Right now, GM has more workers and factories than it needs, which is a losing financial position. So far this year, GM has lost $4.8 billion in North America.
Q: How does this plan help GM's financial position?
A: GM said the plant closings are part of a plan to shave $7 billion off its $42 billion annual bill for operations by the end of next year. That includes a $3 billion cut in health care costs, $1.5 billion in manufacturing cuts and $1 billion in savings on materials.
Q: Does this mean GM will not need to cut further jobs or close more factories?
A: Probably not. Auto companies are always trying to become more productive, and Wagoner said there were no guarantees that more cutbacks would not be necessary...
posted by Unknown @ 12:03 PM
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