As required by congress as a condition of GM's financial bailout, the automaker today unveiled its restructuring and viability plan in the midst of a worsening economic downturn that's left the world's automakers reeling.
In a report to the US Department of Treasury late yesterday, General Motors outlined a plan to accelerate cost reductions, produce fewer and better products and brands, and to continue commitment to fuel economy leadership.
Other critical elements to the GM turnaround plan include labor costs, unsecured debt and a timeline for repayment of the Government loan-- which will now need to be some $4.5 billion more than originally requested.
The automaker is presently evaluating options for selling their Hummer, Saab and Saturn brands, though the latter may be spun-off or phased out at the end of the current product life cycle. A reduction in model nameplates is in the works, as is consolidation of the GM dealer network.
Specifically in Canada, discussions are advancing with the Federal and Ontario governments as well as with the Canadian Auto Workers (CAW) union on achieving competitive labor costs. The CAW has committed to achieving an hourly cost structure that is consistent with what is ultimately negotiated with the UAW.
"The U.S. and global auto industries are facing times of unprecedented challenge," said GM Chairman and CEO Rick Wagoner. "These conditions dictate that we must take very tough actions to accelerate GM's restructuring efforts. We've made a lot of progress since the plan we submitted on December 2, 2008, and we have more to do before March 31. The plan we delivered today to the U.S. Treasury is aggressive but achievable. It provides a clear pathway for GM that continues to support American manufacturing and technology innovation, which are vital to the future of our nation's economy."
In a report to the US Department of Treasury late yesterday, General Motors outlined a plan to accelerate cost reductions, produce fewer and better products and brands, and to continue commitment to fuel economy leadership.
Other critical elements to the GM turnaround plan include labor costs, unsecured debt and a timeline for repayment of the Government loan-- which will now need to be some $4.5 billion more than originally requested.
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| GM Chairman and CEO Rick Wagoner |
The automaker is presently evaluating options for selling their Hummer, Saab and Saturn brands, though the latter may be spun-off or phased out at the end of the current product life cycle. A reduction in model nameplates is in the works, as is consolidation of the GM dealer network.
Specifically in Canada, discussions are advancing with the Federal and Ontario governments as well as with the Canadian Auto Workers (CAW) union on achieving competitive labor costs. The CAW has committed to achieving an hourly cost structure that is consistent with what is ultimately negotiated with the UAW.
"The U.S. and global auto industries are facing times of unprecedented challenge," said GM Chairman and CEO Rick Wagoner. "These conditions dictate that we must take very tough actions to accelerate GM's restructuring efforts. We've made a lot of progress since the plan we submitted on December 2, 2008, and we have more to do before March 31. The plan we delivered today to the U.S. Treasury is aggressive but achievable. It provides a clear pathway for GM that continues to support American manufacturing and technology innovation, which are vital to the future of our nation's economy."