GM Lays Off 3,600 Amid Grim Outlook

[SwampFoxZ71]

Originally Posted by MadTruckMan

It seems pretty obvious to me. First, no more GMAC leases. And then GMAC basically stops loaning money for cars unless you walk into a dealership with a fist full of cash. And I would be willing to bet that rates with other banks probably isn't really competitive. This creates the lack of sales that you now see. 20% loss, 30% loss, could be attributed to economy in general, but 50%?? That is totally from the lack of credit from GMAC and other banks. If you take a look at Toyota, company without the legacy costs of a GM or Ford, they are still turning a respectable profit. Not as much as the market would like, but still turning a profit even in this bad market. If you get GM to 2010 when the VEBA kicks in and GM can shed the retiree costs, GM begins to really make some money then. I would venture to guess that 1billion a month in profits would not be out of the question. Yes, paying back the loans would hurt that some, but you would not kill an industry that has helped this country through some of its darkest hours. But here is the kicker: What if GM doesn't have the 35billion to to pay off the VEBA?? Ummmm....uh oh! I hope that this is being worked into GM's numbers as we are going forward. Maybe this is where the UAW needs to step up and do their part to make this all work out. I hope it does...my livelyhood depends on it!

I believe they've already set that aside and allocated it. It was one of the months, I thought, where the accounting on the books showed the 45Billion loss. That's why the 'loss' wasn't really a loss but one-time charge.

[tkrelston]

Originally Posted by steverino

Yes, and sadly those people are GM customers (assuming most employees purchase their company's products). It's like a vicious circle

Sadly, GMs own employees are less and less GM buyers. A drive past the Tech Center will clearly indicate that more and more are buying imports of the Audi and Prius kind. GM should take that sort of thing into consideration when doing layoffs and hiring; legal or not!

[vxl]

The only way out is for the government to finance GM in the short term but this has to be publicized and executed NOW. The longer these headlines appear in the media the faster GM's sales will decline.

Sell brands has been suggested - the only ones worth anything (an probably not a lot) are Chevrolet, Cadillac, Opel and Daewoo. But by cutting brands one also cuts revenue/cash flow - I thought that was one of the reasons Chrysler was so attractive ($11bn in cash + $80bn/year revenue)

[CheetahDC]

I thought the Cobalt/G5 was selling well? Does anyone have sales figures for that model over the past few months?

[vxl]

Everyone is stuggling. An interesting paragraph from Reuters

"Analysts said Toyota's policy of breakneck expansion has left it especially exposed to an industry crunch brought on by the global financial crisis "

[mgescuro]

That number is waaaaayyy too low.

[Bravada]

Originally Posted by tkrelston

Sadly, GMs own employees are less and less GM buyers. A drive past the Tech Center will clearly indicate that more and more are buying imports of the Audi and Prius kind. GM should take that sort of thing into consideration when doing layoffs and hiring; legal or not!

Even if those 3,600 were really GM customers, not all would buy new cars every month, and not all buy new cars at all - if they can afford new cars, I guess those are rather of the discounted Cobalt kind rather than the high-profit loaded Tahoes. So it isn't that much pain for GM, who needs to sell MILLIONS anyway.

[hunchman]

Originally Posted by nsap

This is possibly the worst aspect of this whole mess; people losing their jobs.

The solution was simple...........buy the cars and trucks your fellow countymen build. There was enough choice just too many excuses were made by people. Everyone is going to feel the effect now.

[mike's 01ws6]

Originally Posted by tkrelston

Sadly, GMs own employees are less and less GM buyers. A drive past the Tech Center will clearly indicate that more and more are buying imports of the Audi and Prius kind. GM should take that sort of thing into consideration when doing layoffs and hiring; legal or not!

Some of theses cars also belong to ouside contractors, vendors, etc. Do you think the people that are making $14 an hour are not going to drive whatever is cheapest?

[member12]

Originally Posted by Koasterking

Definitely not good. I hate to say it, but maybe GM should consider selling some of it's brands.

All of GM's brands are integrated within the company except for Saab.

No selling. GM needs to figure out how to earn money without selling off it's limbs.

[IROCNROL1]

Originally Posted by t-rex

For the love of all that is holy, people....

Please stop using loose in place of lose!

Sorry, it's a pet peeve of mine!

You need to loosen up a little before you loose it.

[johnnyl321]

as i continued to watch CNBC yesterday after the interviews with Mulally and Wagoner, they'd brought Jim Cramer on. You know him, the Mad Money guy. He said that if GM were to fail, it would bring about a type of depression never before seen.

[page2171]

Originally Posted by CheetahDC

I thought the Cobalt/G5 was selling well? Does anyone have sales figures for that model over the past few months?

2007
August 20,814
Septiember 19,794
October 16,505

2008
August 15,281
September 16,521
October 6,478

[cranksprocket]

General Motors is going to re-rate assembly operations at their Delta Township Plant in Lansing, Michigan. They're going to delay reopening the facility after the Christmas holiday shutdown for one week so they can re-rate the production line from two shifts at 44 vehicles per hour to two shifts at 35 vehicles per hour. This re-rate will allow GM to lay off approximately 300 hourly and salary personnel. The Lansing Delta Township Plant builds the Saturn Outlook, GMC Acadia and Buick Enclave crossover vehicles.

[rcworker]

Here's a shock, a (liberal) Toronto Star editorial comes out against government auto bailout. This is the link.

http://www.thestar.com/Business/article/533168

Sadly it really makes sense.