No. 1 US automaker General Motors is planning to cut thousands of white-collar jobs and is considering whether it should sell or stop production of more of its brands.
Board may approve measures in August
LONDON: No. 1 US automaker General Motors is planning to cut thousands of white-collar jobs and is considering whether it should sell or stop production of more of its brands, The Wall Street Journal said, citing people familiar with the matter.
Both moves are part of a broader re-evaluation of the company’s strategy and of its ability to meet an internal projection of returning to profitability in 2010, the people told the paper.
The job cuts are likely to be approved when GM’s board of directors meets in early August, the people said.
The reductions would be in addition to earlier announced cuts.
Management may also present the board with options for raising additional cash, they told the paper.
The board may also hear management’s latest thoughts on whether GM should trim the number of brands it offers in the United States, the people told the paper. All but the Cadillac and Chevrolet brands, which GM considers core to its business, are undergoing close scrutiny, the paper said.
GM spokesman Tony Cervone wouldn’t comment on possible job cuts and said no brands are under “strategic review” beyond Hummer. Detroit-based GM said June 3 it’s studying all options for the Hummer sport-utility line, including a sale.
“Their ship is sinking and they have to shed ballast left, right and center to stay afloat,” said Peter Schmidt, managing director of Automotive Industry Data, a consultant in Warwick, England.
“It does make sense to sell some brands.”
The brands which may be dropped include Buick, Saturn and Saab. Saab, the European upmarket brand, may be an early candidate for a sale, though a buyer is far from assured, Schmidt said.
“Saab has been a holy cow in past years and is losing money consistently,” the analyst said. “Credit to GM for holding on to it,” he said. Many truck engineers may lose their jobs, following GM’s announcement last month that it will postpone designing its next generation of trucks and sport-utility vehicles, the Journal said.
GM had $24 billion in cash and marketable securities and access to about $7 billion in undrawn US loans on March 31.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}