Intenti GM 2009

[simonepietro]

Operating Actions

-GM won’t increase R&D spending as planned. Instead, spending will remain at 2006/2007 levels.
-A major part of the reductions is related to the delay of the next generation large pickup and SUV program, as well as V8 engine development and associated capacity.
-Powertrain spending will be increased to support development of alternative propulsion, fuel economy technologies, and small displacement engines.
-Further plant closures and layoffs are possible. GM will be sitting down with plant leaders and unions -soon.
-GM will reduce salaried workers through normal attrition, early retirements, and mutual separation programs.
-There will be no new base compensation increases for salaried employees for the remainder of 2008 and 2009.
-There will be no cash bonuses for the company’s executive group in 2008. For top executives, this means a reduction of 75 to 84 percent in compensation.
-Health care coverage for U.S. salaried retirees over 65 will be eliminated, effective January 1st. Affected retirees and surviving spouses will receive a pension increase from GM’s over funded U.S. salaried plan.
-GM’s board decided to suspend future dividends on common stock, effective immediately.
-$2 billion savings related to reduction of raw material, work-in-progress and finished goods inventory levels as well as lean inventory practices at parts warehouses.
-GM will defer approximately $1.7 billion of payments that had been scheduled to be made to the UAW VEBA fund.

Asset Sales and Financing

-GM expects to raise $2 to $4 billion from asset sales. GM reiterated it is considering a sale of the Hummer brand and “continuing to focus on profit improvement initiatives across all remaining GM brands.”
-GM is targeting at least $2-3 billion of financing. The company says its $20 billion in assets would warrant even more financing, but sufficient liquidity can be achieved through those amounts.
“Our goal is to change the company for the long haul,” Wagoner said. The aim is “to set us up to be competitive for years to come,” he said.

“Our plan is not a plan to survive. It is a plan to win,” he concluded


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