Rick Wagoner, the CEO of GM set out a broad plan yesterday at the GM annual meeting that consisted of cutting 25,000 jobs, adding a billion to capital expenditures to retool product and a bargaining strategy to address the huge health care component expense per car that GM faces. (www.autoindustry.co.uk/news/industry)
Rock county families are abuzz this morning talking about what this means for them. Are the changes at GM in Janesville going to be enough? What are the prospects for the more efficient trucks in the product mix for Janesville? Is the culture of GM able to move fast enough?
What do you think? The comment line is open.
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It could be anyones guess how this could play out.
ReplyDeleteSince GM was reduced to junk bond status they have had a battle on thier hands. They last good program they came out with was right after 9/11 0% interest and a couple of others. They could not make product fast enough.
Then the foreign car makers started putting plants in the U.S. the GM American Made novelty started to wear off. Coupled with the ever increasing gas prices which left them basically crippled with there huge line of gas guzzlers. These two items seem to have doomed them.
Now that is the unfrosted side of it.
This is the frosted side. If GM has a chance it would be that for a congomlurate they move pretty fast. They have the ability to cut through the BS and get a program moving. If they retool (which they are expert at)then I think GM will file chapter 11 to keep the hounds at bay while the lines are rebuilt. GM will come out smelling like a rose or an S10.