General Motors: Plan Is to Win, Not Just Survive

BusinessGeneral Motors: Plan Is to Win, Not Just SurviveGeneral Motors: Plan Is to Win, Not Just SurviveThe Associated PressGeneral Motors, hit hard by the weakening U.S. economy outlined a series of steps Tuesday to help cover losses and turn around its North American operations. (July 15)General Motors, hit hard by the weakening U.S. economy outlined a series of steps Tuesday to help cover losses and turn around its North American operations. [Notes:SOT: Rick Wagoner, general Motors CEO]"IN SHORT, OUR PLAN IS NOT A PLAN TO SURVIVE. IT IS A PLAN TO WIN." The plan will involve a reduction in the number of salaried workers, slashing truck and SUV production by 300,000 units - double the previous estimate - and the elimination of health care benefits for salaried retirees.GM says it wants to reduce total salaried costs in the U.S. and Canada by more than 20 percent. [Notes:SOT: Efriam Levy Auto Industry Equities Analyst]XXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXGM says retirees would get a pension increase from the company's overfunded pension fund to help compensate for Medicare and supplemental insurance.[Notes:SOT: Brian Larkin. VP Local 594, Pontiac, Mich]XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXGM also plans to raise $2 billion to $4 billion through the sale of assets, including its Hummer brand. The company intends to borrow up to $3 billion by pledging assets including stocks as well as a stake in its finance and real estate arm.GM said the moves will raise $15 billion and help position it for future growth. ___ ___, The Associated Press.(****END****)

Category:

News & Politics

Tags:

• general
• motors
• motors:
• plan
• win
• survive