|
GM unveils plans to axe plants, jobs, dealerships
(China Daily)
Updated: 2009-04-28 08:19
General Motors Corp announced plans yesterday to slash plants, hourly workers and dealers and to eliminate its Pontiac brand in an effort to meet government demands for a quicker and deeper restructuring. The new viability plan was announced as GM filed plans for an exchange of $27.2 billion of bonds with the US Securities and Exchange Commission, warning that it would seek bankruptcy protection if the offer did not receive sufficient interest. GM said the new plan called for deep cuts by the end of 2010: reducing the number of US plants to 34 from 47, slashing the US hourly workforce by about 21,000 to 40,000 and cutting its dealer network to 3,605 from 6,246. GM, which last week took $2 billion of emergency US government loans to bring its total to $15.4 billion so far, was told by the Obama administration in late March it had to June 1 to dig deeper and move faster for continued support. The automaker plans to focus on four core brands in the United States - Chevrolet, Cadillac, Buick and GMC - and phase out the Pontiac brand by the end of next year. Chrysler progress US automaker Chrysler LLC showed signs of progress with its unionized workers in its battle to stay alive with just days left to complete deals to slash labor and debt costs or face bankruptcy. Chrysler - 80 percent controlled by private-equity firm Cerberus Capital Management LP - has been given until April 30 by the Obama administration to agree on cost-cutting deals with its creditors and the unions, plus cement an alliance with Italian automaker Fiat SpA. Failure to meet those goals could shut off access to US government aid for Chrysler, leaving it facing potential liquidation. In a first significant step toward meeting those goals, the Canadian Auto Workers union on Sunday ratified a new collective agreement with the automaker that will save Chrysler about C$240 million ($198 million) annually. The union said its members voted 87 percent in favor of the new agreement. Chrysler has 8,000 unionized workers in Canada. "Our members understand better than anyone the current turmoil of the domestic auto industry," said CAW President Ken Lewenza. "The high acceptance of this agreement is a recognition that although workers did not cause this crisis, we all have an interest in maintaining good jobs and ensuring the auto industry remains central to the overall Canadian economy." The United Auto Workers union announced later it had also reached a tentative agreement with Chrysler, Fiat and the US government on further concessions to a contract and a healthcare trust agreed with the automaker in 2007. The UAW said that deal must be ratified by tomorrow and meets conditions mandated by the US Treasury as part of an emergency loan program for Chrysler. "The patience, resolve and determination of UAW members in these difficult times is extraordinary, and has made it possible for us to reach the agreement we will present to our membership," UAW President Ron Gettelfinger said in a statement. The UAW represents about 26,800 Chrysler workers in the United States. Reuters
(China Daily 04/28/2009 page17) |
