Quote:
In the past two years, about 33,600 U.S. factory workers departed Ford Motor Co. through buyouts. Last month, Dearborn, Michigan-based Ford said an additional 4,200 had accepted its latest offers...
...GM's U.S. truck sales fell 18 percent in the first four months of this year as buyers cope with record gasoline prices by seeking models that burn less fuel. GM's total sales fell 12 percent. The company has lost $54 billion since the end of 2004.
GM offered retirement and buyout incentives to all 74,000 of its UAW members in February. Assembly line workers with 30 or more years of service are eligible to receive payments of $45,000. Employees with a skilled-trade designation such as electricians will get $62,500. The new payouts exceed the $35,000 offered previously to retirement-eligible UAW members.
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Absolutely sobering numbers that will amount to nothing, as they did in the past, if GM's management doesn't juxtapose continued cuts beyond the marrow with a consistent, thoughtful product strategy that marries strong brand identity with strong product. Thus far, GM's record on the latter count isn't particularly inspiring. Anyone can cut staff and produce a profit for the next quarter-of course, GM cannot even manage that low-bar feat. But the true test of management is if it can earn its extremely high compensation and once again get GM to gain traction in NA.
I'm not so sure the current team possesses the talent.