GM to Bolster Liquidity by $15 Billion through 2009

[johnstarnes]

I'm still trying to figure out why and how Lutz and Wagoner got SUCH big raises this year. Back before I became self employed in 1984, getting a raise required either doing a great job, or, brown-nosing (or more) the boss. I wonder what forces are at play here?

[Gagarin]

Originally Posted by Ming

An MSNBC talking head just said the same thing about a half hour ago, and said it was "a fact".

Here's less of a GM PR article:




http://biz.yahoo.com/ap/080715/gm_re...ring.html?.v=5

I guess I was hoping for more of a "here's how we're going to reinvent GM" sort of radical plan. All things considered, this kind of ho-hum, cut-cut, borrow-borrow speech is not what I was expecting after the hype last night. I mean, I'm sure it's big to people working at GM, but for outsiders it seems like just another speech, another plan and perennial promises of a turnaround from Rick.

Stock isn't moving up or down (yet), so maybe I'm not the only one left scratching my head and walking away disappointed. (Though it's good to hear the Equinox will get a good 4-cyl. that it should've had from day 1.)

So what happened to that big story or developments from GMI about brand closings? *Yawn* You guys play a good game, too.

[stormwatcher]

Originally Posted by fp115

The additional 15b cost savings GM announced will allow GM to proceed beyond 2009 when all the cuts and savings they have been planning will take effect, totaled to about 15b a year.

Despite what GM said, I don't see anywhere near $15 billion in cost savings outlined. Does anyone else see it?

Originally Posted by fp115

GM has over 31b in cash and with an additional 15b which it has just raised through cuts. A grand total of over 45b.

GM hasn't raised $15 billion. And I see no way they can realize huge savings like that in such a short period of time.

I doubt GM can realize more then $6 to $7 billion in cost savings, and all these cost saving will be eaten up shuttering the 4 truck plants recently announced and early retiring all those workers at great cost. None of these billions of dollars in costs show up on GM's books yet.

[vam29]

IMHO by not eliminating a Brand(s) the dealer network will be reduced by as much as 50% over the next few years through attrition, including Chev dealers as they will be losing truck sales which are the main source of their revenue. This, on the surface, will save GM billions as many of these stores close on their own. However, this process, although preferable from a cost perspective, might take too long to help GM get back on track.