Timeline: G.M. proposes to pare its American workforce to 38,000 union employees & 34 plants, compared with 395,000 & 150 plants at its peak in 1970.
From The New York Times:
G.M. said it would eliminate another 21,000 factory jobs, close 13 plants, cut its vast network of 6,500 dealers almost in half and shutter its Pontiac division.
By the time it is finished, G.M. expects to have only 38,000 union workers and 34 factories left in the United States, compared with 395,000 workers in more than 150 plants at its peak employment in 1970.
This plan is a far cry from G.M.’s strategy of just a year ago, when it was waging a spirited battle with Toyota for the title of world’s largest automaker.
Where once G.M. had a 50 percent share of the market for new vehicles in the United States, the company hopes to at least hang on to its current 18 percent share.
According to one opinion in The Wall Street Journal:
Pressing the accelerator and brake simultaneously creates a lot of noise while getting you precisely nowhere. General Motors' latest restructuring proposal could be described in the same way.
Bondholders would find themselves minority shareholders in a strange beast controlled by Washington and union members. With 90% bondholder approval needed for this new proposal, it looks like a nonstarter. Still, should it fail and GM enter Chapter 11, the government will at least be able to say it tried.
G.M. said it would eliminate another 21,000 factory jobs, close 13 plants, cut its vast network of 6,500 dealers almost in half and shutter its Pontiac division.
By the time it is finished, G.M. expects to have only 38,000 union workers and 34 factories left in the United States, compared with 395,000 workers in more than 150 plants at its peak employment in 1970.
This plan is a far cry from G.M.’s strategy of just a year ago, when it was waging a spirited battle with Toyota for the title of world’s largest automaker.
Where once G.M. had a 50 percent share of the market for new vehicles in the United States, the company hopes to at least hang on to its current 18 percent share.
According to one opinion in The Wall Street Journal:
Pressing the accelerator and brake simultaneously creates a lot of noise while getting you precisely nowhere. General Motors' latest restructuring proposal could be described in the same way.
Bondholders would find themselves minority shareholders in a strange beast controlled by Washington and union members. With 90% bondholder approval needed for this new proposal, it looks like a nonstarter. Still, should it fail and GM enter Chapter 11, the government will at least be able to say it tried.
posted by Sid Cottingham | 5:28 AM
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