The day after General Motors presented it restructuring plan, the American giant held an international press conference, broadcast over the Internet, to review the situation before the media's main financial analysts.
GM didn't reveal anything new, insisting instead on the necessity of making dramatic changes in light of the economic downturn. "The industry is declining and will continue to do so for several months. We have to make our decisions accordingly," explained Ray Young, chief financial officer of General Motors.
In concrete terms, the decisions have been announced, though the details remain to be outlined. GM will be closing a few assembly plants, cutting several hundred thousand jobs, closing a few hundred dealerships and dropping certain models.
However, the future of the manufacturer's other brands is still uncertain and, in some cases, under negotiation. This is Opel's case: its future clearly depends on a potential agreement between the German and European governments. "We know that we have to cut production costs and reduce production time, but if we aren't able to do so and don't receive any support, we'll have to consider drastic measures," said Young.
Hummer's case is a little different. The brand is for sale, and two buyers are reportedly interested. But nothing has been confirmed. As for GM's Canadian branch, it is still negotiating with the Canadian and Ontarian governments. "The Canadian Auto Workers union confirmed its desire to stick to the negotiations with its American counterpart. If all goes well, we hope to reach an agreement with all Canadian parties by the end of March."
"Our plan is feasible and will allow us to ensure our long-term viability. We are just a few agreements shy of accomplishing it," concluded the president of General Motors.
photo:General Motors
GM didn't reveal anything new, insisting instead on the necessity of making dramatic changes in light of the economic downturn. "The industry is declining and will continue to do so for several months. We have to make our decisions accordingly," explained Ray Young, chief financial officer of General Motors.
In concrete terms, the decisions have been announced, though the details remain to be outlined. GM will be closing a few assembly plants, cutting several hundred thousand jobs, closing a few hundred dealerships and dropping certain models.
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| Ray Young, chief financial officer of General Motors. |
However, the future of the manufacturer's other brands is still uncertain and, in some cases, under negotiation. This is Opel's case: its future clearly depends on a potential agreement between the German and European governments. "We know that we have to cut production costs and reduce production time, but if we aren't able to do so and don't receive any support, we'll have to consider drastic measures," said Young.
Hummer's case is a little different. The brand is for sale, and two buyers are reportedly interested. But nothing has been confirmed. As for GM's Canadian branch, it is still negotiating with the Canadian and Ontarian governments. "The Canadian Auto Workers union confirmed its desire to stick to the negotiations with its American counterpart. If all goes well, we hope to reach an agreement with all Canadian parties by the end of March."
"Our plan is feasible and will allow us to ensure our long-term viability. We are just a few agreements shy of accomplishing it," concluded the president of General Motors.
photo:General Motors