GM will close four factories for either one or two weeks in January

[GM2004]

http://money.cnn.com/news/newsfeeds/...7_FORTUNE5.htm

GM Cuts Production Deeper, Says Weak Sales Continue In Nov.

November 18, 2008: 01:39 PM EST


DETROIT -(Dow Jones)- General Motors Corp. (GM), faced with a sales slide that shows no signs of easing, will further cut production heading into 2009 by scheduling downtime at several plants and canceling planned overtime shifts.

In a letter send Tuesday to parts suppliers, GM purchasing Chief Bo Andersson said November sales are proving as weak as in October, when the auto maker posted a 45% sales decline.

"With the dramatic drop in sales in October combined with the continuing trend in November due to the tight credit market creating the inability for customers to secure financing to purchase or lease a new vehicle, GM leadership has decided to cancel some of the overtime planned for the balance of the 2008 calendar year and into early 2009," Andersson wrote in the letter.

In addition to canceling overtime at seven factories, GM will close four factories for either one or two weeks in January. The factories are in Shreveport, La., Wilmington, Del., Spring Hill, Tenn., and a joint venture in Ingeroll, Ont. Some plants produce slow sellers including the Hummer H3 sport- utility vehicle and the Pontiac Solstice roadster. The Spring Hill factory, however, builds the just-launched Chevrolet Traverse crossover.

The moves are the latest in a string of deep production cuts announced or carried out by GM in the last year. GM, which burned through $6.9 billion in the third quarter, is taking dramatic steps to maintain liquidity as it waits for word on whether the federal government will extend aid to troubled U.S. auto makers. The auto maker said it could run out of cash by the end of the year without government intervention.

Lawmakers are meeting Tuesday to discuss a bailout of the domestic auto industry. A plan GM rolled out in July to raise $15 billion, mostly through cost cuts, isn't sufficient, given rapidly deteriorating market conditions in the U.S. and around the globe. The company has also been stung by the freezing-up of credit markets, which has hampered plans to sell assets and raise money in capital markets.

GM had said earlier this month it will try to raise an addition $5 billion through cost cuts that include scaling back production starting early next year.

GM shares, which have hit six-decade lows in recent weeks, were down 10% to $ 2.86 in afternoon trading Tuesday on the New York Stock Exchange.

(John Stoll contributed to this article)

- By Sharon Terlep; Dow Jones Newswires; 248-204-5532; sharon.terlep@ dowjones.com

- By Jeff McCracken; The Wall Street Journal; 212-416-4968

[lam]

Originally Posted by GM2004

http://money.cnn.com/news/newsfeeds/...7_FORTUNE5.htm

GM Cuts Production Deeper, Says Weak Sales Continue In Nov.

November 18, 2008: 01:39 PM EST


DETROIT -(Dow Jones)- General Motors Corp. (GM), faced with a sales slide that shows no signs of easing, will further cut production heading into 2009 by scheduling downtime at several plants and canceling planned overtime shifts.

In a letter send Tuesday to parts suppliers, GM purchasing Chief Bo Andersson said November sales are proving as weak as in October, when the auto maker posted a 45% sales decline.

"With the dramatic drop in sales in October combined with the continuing trend in November due to the tight credit market creating the inability for customers to secure financing to purchase or lease a new vehicle, GM leadership has decided to cancel some of the overtime planned for the balance of the 2008 calendar year and into early 2009," Andersson wrote in the letter.

In addition to canceling overtime at seven factories, GM will close four factories for either one or two weeks in January. The factories are in Shreveport, La., Wilmington, Del., Spring Hill, Tenn., and a joint venture in Ingeroll, Ont. Some plants produce slow sellers including the Hummer H3 sport- utility vehicle and the Pontiac Solstice roadster. The Spring Hill factory, however, builds the just-launched Chevrolet Traverse crossover.

The moves are the latest in a string of deep production cuts announced or carried out by GM in the last year. GM, which burned through $6.9 billion in the third quarter, is taking dramatic steps to maintain liquidity as it waits for word on whether the federal government will extend aid to troubled U.S. auto makers. The auto maker said it could run out of cash by the end of the year without government intervention.

Lawmakers are meeting Tuesday to discuss a bailout of the domestic auto industry. A plan GM rolled out in July to raise $15 billion, mostly through cost cuts, isn't sufficient, given rapidly deteriorating market conditions in the U.S. and around the globe. The company has also been stung by the freezing-up of credit markets, which has hampered plans to sell assets and raise money in capital markets.

GM had said earlier this month it will try to raise an addition $5 billion through cost cuts that include scaling back production starting early next year.

GM shares, which have hit six-decade lows in recent weeks, were down 10% to $ 2.86 in afternoon trading Tuesday on the New York Stock Exchange.

(John Stoll contributed to this article)

- By Sharon Terlep; Dow Jones Newswires; 248-204-5532; sharon.terlep@ dowjones.com

- By Jeff McCracken; The Wall Street Journal; 212-416-4968

These are production cuts.

[Buickman]

for so long the warning was there

now in times of despair

if you care

you'll help remove the Chair.

[BigThreeForever]

Originally Posted by Buickman

for so long the warning was there

now in times of despair

if you care

you'll help remove the Chair.

Is that the Chair[man], or the Chair upon which he is standing (with a rope around his neck?)

[rozz]

Originally Posted by Buickman

for so long the warning was there

now in times of despair

if you care

you'll help remove the Chair.

Good poem.

[mike's 01ws6]

They just added the first two weeks of December to the already scheduled first week of January at the Plant in Wentzville, Mo. that makes the full sized vans.

[JeffInDFW]

GM shares, which have hit six-decade lows in recent weeks, were down 10% to $ 2.86 in afternoon trading Tuesday on the New York Stock Exchange.

Holy Cow. I keep waiting to wake up from the nightmare. I honestly can't believe what is unfolding.....

[96_impala_ss]

Be thankful GM doesnt have Fords stock price of $1.68

and we thought Ford was the better off car company...

[johnnyl321]

I'm still confused as to why stocks such as google trades for almost $300 a share and automakers so low. Automakers actually produce a tangible product, Google produces online advertising space basically.
Can someone educate me?

[PhishPhood]

Originally Posted by johnnyl321

I'm still confused as to why stocks such as google trades for almost $300 a share and automakers so low. Automakers actually produce a tangible product, Google produces online advertising space basically.
Can someone educate me?

LIke everything else in sales the price is related to one thing alone...what someone ( the buyer ) is willing to pay for it.

Your house is only 'worth' what the buyer will pay for it.
Your car is only 'worthwhile' to you when you saw the value of giving up your money for it.
Google's stock is 'worth' what the last buyer wanted to pay for it.
Gm's stock is 'worth' what the last buyer wanted to pay for it.
Bread at $22 / loaf is not 'worth' it....unless you're starving and you've got a pocketful of $20 bills.

That is not the actual value of GM, it's assets less liabilities plus goodwill. Actually GM could have a positive value or if it's bills and liabilities are greater than it's assets and goodwill then the actual value might be negative. That's an entirely different discussion though.

[4runner]

Originally Posted by 96_impala_ss

Be thankful GM doesnt have Fords stock price of $1.68

and we thought Ford was the better off car company...

By God, our nation's school's are clearly failing and need a bailout as well.

Here's a quick lesson for ya - a company's market capitalization is determined by multiplying the number of outsanding shares by the share price. It is not simply the share price.

And if you're wondering, as of today, GM's market cap is $1.89 billion. Ford's is $4.01 billion.

[383_torque]

I'm still confused as to why stocks such as google trades for almost $300 a share and automakers so low. Automakers actually produce a tangible product, Google produces online advertising space basically.
Can someone educate me?

Google is a service with tons of advertising revenue. I used to own their stock. Look at these incredible numbers...

20 Billion in revenue (Trailing 12 months)
31% Quarterly revenue growth
9.94 Billion in GROSS profit
20% Quarterly earnings growth
Price/Earnings ration of 17.

[96_impala_ss]

Originally Posted by 4runner

By God, our nation's school's are clearly failing and need a bailout as well.

Here's a quick lesson for ya - a company's market capitalization is determined by multiplying the number of outsanding shares by the share price. It is not simply the share price.

And if you're wondering, as of today, GM's market cap is $1.89 billion. Ford's is $4.01 billion.

No, I understand that Ford is actually the better off company of the big 3, im saying everyone says Ford stock is worth more.

[69CamaroSS396]

Rick Wagoner hasn't received any salary for 2 years now, correct?

Ford has also pulled all available credit earlier in the year and thus has more cash on hand so to speak.

Just my 2¢.

[mike's 01ws6]

Originally Posted by 69CamaroSS396

Rick Wagoner hasn't received any salary for 2 years now, correct?

Ford has also pulled all available credit earlier in the year and thus has more cash on hand so to speak.

Just my 2¢.

I guess with the credit problems right now and the auto market tanking that Ford had very good timing doing this when they did and will save a little money on interest.