Quote:
Originally Posted by doh
* Planning assumptions: GM estimates industrywide U.S. auto
sales of 14 million in both 2008 and 2009, GM U.S. auto market
share of 21 percent, and average oil price of $130 to $150 per
barrel by 2009.
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The price of oil is optimistic. 21% market share is also optimistic.
Quote:
Originally Posted by doh
* Internal operating changes and other actions expected to
generate $10 billion cash improvement by the end of 2009.
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Like what?
Quote:
Originally Posted by doh
* White-collar job cuts in United States and Canada in 2008
through buyouts, early retirement offers and attrition.
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OK. How about a hiring freeze and consolidation of processes. Make people wear different hats. Get more work out of the white collars.
Quote:
Originally Posted by doh
* Suspends dividends on common stock, effective
immediately, which is expected to improve liquidity by $800
million through 2009.
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Took them long enough.
Quote:
Originally Posted by doh
* Expects to raise $4 billion to $7 billion through asset
sales and financing activities; initially targeting at least $2
billion to $3 billion of financing.
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Yeah... shouldn't have bought the RenCenter now, huh!!!???
Quote:
Originally Posted by doh
* Says has gross unencumbered assets of over $20 billion,
which could support a significant secured debt offering, or
multiple offerings. Assets include foreign subsidiaries,
brands, stake in lender GMAC.
* Reviewing global assets for possible sale or
monetization, expected to generate $2 billion to $4 billion.
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Interesting. Sale of Saab? Holden?
Quote:
Originally Posted by doh
* Health care coverage for U.S. white-collar retirees over
65 to be eliminated, effective Jan. 1, 2009. Affected retirees
and surviving spouses to receive a pension increase to help
offset health care costs.
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Interesting.
Quote:
Originally Posted by doh
* To defer $1.7 billion of payments scheduled to be made
over 2008 and 2009 for the establishment of a new United Auto
Workers union health care expenses trust.
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I saw that one coming.
Quote:
Originally Posted by doh
* No new salary increases for U.S. and Canadian
white-collar employees for the rest of 2008 and 2009.
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I saw that one coming too.
Quote:
Originally Posted by doh
* No annual discretionary cash bonuses for the company's
executive group in 2008.
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Should have included 2009 too.
Quote:
Originally Posted by doh
* Benefit changes, white-collar job cuts and other related
savings to result in an estimated reduction in cash costs of
more than 20 percent, or $1.5 billion, in 2009.
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That's a given.
Quote:
Originally Posted by doh
* Structural cost saving of $2.5 billion expected in North
America through cuts in truck capacity and related component,
stamping and powertrain capacity in response to lower U.S.
industry volume.
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Yeah... but you still ahve to pay the union for not doing anything.
Quote:
Originally Posted by doh
* Truck capacity expected to be reduced by 300,000 vehicles
by the end of 2009.
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Not enough reduction.
Quote:
Originally Posted by doh
* To reduce and consolidate sales and marketing budgets,
but will protect new products and brand advertising.
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Yeah... we'll see about that...
Quote:
Originally Posted by doh
* Engineering spending in 2008 and 2009 will be held at
2006-2007 levels.
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An unfortunate necesity.
Quote:
Originally Posted by doh
* Capital expenditures now estimated to total $7 billion in
2009 versus prior plans for $8.5 billion.
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Need to lower that further. How about halting all business trips, instead rely on technology like Telepresence.
Quote:
Originally Posted by doh
* Annual capital expenditures expected to run at $7 billion
to $7.5 billion beyond 2009, excluding China.
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Interesting.
Quote:
Originally Posted by doh
* Delaying next-generation large pickup and SUV program, as
well as V-8 engine development.
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Should be delayed 1 full model cycle, with appropriate MCE's. V8 on the other hand can be purchased for Cadillac from a 3rd party.
Quote:
Originally Posted by doh
* Spending for non-product programs to be significantly
reduced; funding to be increased for development of alternative
propulsion and fuel economy technologies and small-displacement
engines.
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I'll believe it when I see it.
Quote:
Originally Posted by doh
* To improve working capital by $2 billion in North America
and Europe through reduction of raw material, work-in-progress
and finished goods inventory levels as well as lean inventory
practices at parts warehouses.
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If GM had put the lean inventory practices into place back when they launched Saturn -- AS THEY WERE SUPPOSED TO -- perhaps they'd have learned a thing or two by now.
It's unbelievable that this wasn't reduced to begin with!!?? Who runs GM's operations centers???? Dammit. This is a textbook business school application right here!!!
Quote:
Originally Posted by doh
* To report a significant 2008 second-quarter loss, hurt by
settlement with parts maker American Axle and local union
strikes in North America as well as continued weakness in the
U.S. auto market and consumer shift toward smaller cars.
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If union strikes cripple the industry and companies that have a greater net effect on the economy, the BREAK THE UNION.