GM mulling thousands of job cuts, sale of brands: report

[neshapop]

(Reuters) - General Motors Corp (GM.N) is planning to cut thousands of white-collar jobs and is considering whether it should sell or stop production of more of its brands, The Wall Street Journal said, citing people familiar with the matter.

Both moves are part of a broader re-evaluation of the company's strategy and of its ability to meet an internal projection of returning to profitability in 2010, the people told the paper.

The job cuts are likely to be approved when GM's board of directors meets in early August, the people said. The reductions would be in addition to earlier announced cuts.

Management may also present the board with options for raising additional cash, they told the paper.

The board may also hear management's latest thoughts on whether GM should trim the number of brands it offers in the United States, the people told the paper.

All but the Cadillac and Chevrolet brands, which GM considers core to its business, are undergoing close scrutiny, some other people told the paper.

In the past few years, as GM has run up massive losses, some board members and some executives have on occasion raised questions about its plethora of brands, only to be rebuffed by Chief Executive Rick Wagoner, the paper said, citing people familiar with the matter.

GM has put its Hummer brand up for sale to prospective buyers thought to include Mahindra & Mahindra (MAHM.BO), but the SUV brand is expected to fetch far less than $1 billion in any sale.

The company, hit by rising oil and raw material prices, the credit crunch and the housing downturn, will need to raise as much as $15 billion in cash to shore up liquidity and bankruptcy is "not impossible" if the U.S. auto market continues to slump, Merrill Lynch had said last week.

U.S. auto sales plunged in June to a 15-year low.

Although GM clung on to its top spot in the American market, some analysts have raised concerns over the financial state of the firm, whose shares fell to a 54-year low earlier this month.

GM could not be immediately reached for comment.

(Reporting by Pratish Narayanan in Bangalore; Editing by Kim Coghill)

http://news.yahoo.com/s/nm/20080707/bs_nm/gm_jobs_dc

My comment: I am glad to see that media jobs have been outsourced to India as well. However quality and accuracy will not suffer.

[PAULSTS1]

There's very little fresh comment here, GMI members have been speculating for months that these alternatives would be on the table. However the news that CEO Rick Wagoner has only been rebuffing the ideas, shows he's either non-responsive or swimming in a pond much too big for him. Mr Wagoner, should step down, immediately!

[johnstarnes]

Originally Posted by PAULSTS1

There's very little fresh comment here, GMI members have been speculating for months that these alternatives would be on the table. However the new that CEO Rick Wagoner has only been rebuffing the ideas, show he's either non-responsive or swiming in a pond much to big for him. Mr Wagoner, should step down, immediately!

I agree...then he and Nardelli can sit on a Mexican beach at a glamorous 5 star hotel, drink Coronas served them by bikini-clad synchophants, count their hundreds of millions and show each other how big their Golden Parachutes are.

[CamaroCrazy]

Here we go again, let's debate what brands should be sold/closed. Ugh. Dark times, these are.

[dindak]

I think GMC is done and Hummer will be sold if they can get a decent price for it.

Other brands might shrink a bit (Pontiac should have lost a few models years ago), but no others should be killed. Over reaction is not what is needed here.

[drew770]

According to the article, it seems that Saab's & Saturn's days are numbered. I expect one of the GPB members to see the casket also.

I am more excited then ever about GM's future because if they can get the CTS under money problems and 8 brands starving for resources, I would love to see what they can do being a slimmer more focused company.

[windvale]

Originally Posted by drew770

I am more excited then ever about GM's future because if they can get the CTS under money problems and 8 brands starving for resources, I would love to see what they can do being a slimmer more focused company.

Agree 100% !

Can you imagine if GM just had to design and market Chevy and Cadillac ? I really believe there would be a chance for Chevy to have a market leader in each category.

[guitarlix]

If Wagoner rebuffed board suggestions to trim brands, he's absolutely the wrong person to head this company. GM's umpteen brands is one of its BIGGEST problems and if Richard hasn't been able to notice that, he should never have been CEO in the first place.

Management destroying America's fine automobile companies 3 decades in a row...

[CamaroCrazy]

I had hopes for Saturn........I really wanted them to be an outlet for Opel in America. I like their current product range more than ever (albeit not perfect) but I think its true, the market just hasn't taken to them. Give them more time?

[greenrail]

Duplicate vehicles sold under several brands, just doesn't make sense in today's market.

Likewise, a reliance on heavy gas guzzling SUV's and trucks is something that was a long time coming as far as a shake out.

Time to focus on quality fuel efficient fleet averages. Build vehicles that the public wants. Make them desirable.

The American Public, has no one to blame but themselves. No one held a gun to their heads and forced them to buy what they did.

[1487]

Originally Posted by windvale

Agree 100% !

Can you imagine if GM just had to design and market Chevy and Cadillac ? I really believe there would be a chance for Chevy to have a market leader in each category.

yes and GM's share could be about 70% of what it is today and they can spend billions paying off dealers and settling suits. Cutting brands will be so easy and will guarantee profitability. It worked wonders the last time they cut a brand. Look at all that GM black ink that resulted from the Olds situation.

[Ambalanche]

The bad thing here is that I just saw a short snipit about this on Headline news. They only report the worst, so people that see it will automatically think GM is going under so they might not buy that new CTS or Malibu they've been eyeing.

[Buickman]

it's not the number of brands, employees, or dealers. it's the lack of competent management. when will people wake up and realize that Red Ink Rick has been a complete failure and has done nothing to provide the leadership necessary to grow our business. cutting more divisions, selling more assets and borrowing more money is NOT the answer to what ails GM. Red Ink Rick must go!

[nikivee]

GM should get rid of Saturn, Hummer and Saab.

[Hotspur]

Postponing decisions until mid-August... Even as Rome burns GM management sits.