GM to cut 47000 more jobs

[The Monty]

http://www.news.com.au/couriermail/s...003402,00.html

More jobs going at GM. 26 000 of these outside the US. What does this mean for Holden?

[prydey]

http://www.news.com.au/business/stor...62-462,00.html

this is the same story but i put it up as well mainly because of the 2nd comment at the bottom of the page, by a prius owner no less.

good to see an article reporting on the woes of holden without Ford being mentioned.

not good news though. the end of holden will almost certainly have a major impact on parts suppliers and ford.

we all rubbish them but australia needs them to keep an automotive industry.

[barbarian]

good news..

the more GM is buried under rubles of huge debts, the better it is

good riddance :

[CADSKY]

yeah as much as i HATE holden. i would also HATE to see them gone. ford would follow very quickly if it happened

[SB076]

hmm not good those 47,000 jobs lost wont help stimulate the economy, will reduce spending and will result in more job losses

[BadMac]

Holden will remain viable, says GM
4:31PM Wednesday Feb 18, 2009

Holden may not be spared from the 26,000 jobs cuts GM plans outside the US.
ADELAIDE - Local car maker Holden will remain viable and make a positive contribution to the global recovery of auto giant General Motors, a plan put to the US government says.

But Holden may not be saved from job cuts as local executives look at all aspects of the business and make some "tough decisions" as part of the global restructuring efforts.

The GM plan put to the US treasury department said the company might need up to US$30 billion in government loans as it implemented a survival strategy that included cutting 47,000 jobs, including 26,000 from outside the US.

GM would try to borrow up to US$16.6 billion more from the government, on top of the US$13.4 billion it had already received.

The company also planned to close 14 factories, five more than originally planned, sell off or phase out the Saturn brand and consider doing the same with Hummer.

It would also consider its options for its Pontiac brand. Holden currently produces the G8 sedan for Pontiac.

Holden was mentioned just briefly in the GM plan, which made references to the program to build a new small car in Australia from 2010.

It said Holden and the federal government had developed a plan to bring the more fuel-efficient model to market, with funding provided by the government in the form of permanent grants.

"With this support, Holden is projected to be a viable operation, making a positive contribution," the GM plan said.

Holden media relations national manager Scott Whiffin said GM's global restructuring plan highlighted the need for every part of the corporation to contribute.

"Holden is actively working on a series of initiatives that will see us contribute meaningfully to GMs global viability," he said.

"We have already announced plans to build a second car line in Adelaide - the reality of that is that we are a company that is innovating to make sure we are responding to a rapidly changing market."

Mr Whiffin said Holden also had other initiatives on the table that were still to be finalised.

"We are actively looking at all aspects of the business and will be making some decisions - some of them tough decisions - in the coming weeks in terms of our structure and operations," he said.

"All of this contributes to a viable, sustainable local operation."

Mr Whiffin said Holden's outlook remained challenging with shrinking local and export markets affecting sales volumes and manufacturing schedules.

In 2008, Holden's total vehicle sales in Australia fell by 11 per cent while in January sales were down by 14.5 per cent compared to the same month last year.

[XplosiveR6]

Wow I can’t believe the ignorance posted by those two comments on the bottom of the page.
The first poster owns a little prius that actually is much more harmful to the environment then and falcon or commodore could ever be
Then the second poster thinks Holden could ‘break away’ from GM, then how could they power their cars without an engine? Or how would they possibly be able to afford the $1billion it costs to create new platforms all for a tiny market.
Globalisation is implemented for a reason.

[csv8]

FORD seem to be immune from the american car maker finanace problems. at the moment.
FORD haven't asked for a loan from the US government. So, hopefully they are doing ok.

[prydey]

Originally Posted by XplosiveR6

Wow I can’t believe the ignorance posted by those two comments on the bottom of the page.
The first poster owns a little prius that actually is much more harmful to the environment then and falcon or commodore could ever be
Then the second poster thinks Holden could ‘break away’ from GM, then how could they power their cars without an engine? Or how would they possibly be able to afford the $1billion it costs to create new platforms all for a tiny market.
Globalisation is implemented for a reason.

yeah, that prius owner has copped it from every comment since, myself included.

[XR6_190]

This is not good, the ONLY positive I can see to come out of this for Ford, is it might just get the media off Ford's back for a while. Honestly apart form that, this is more likely to be only the tip of the iceberg, and unfortunately there will probably be more to come. Also have Chrysler announced anything along these lines?

Originally Posted by prydey

yeah, that prius owner has copped it from every comment since, myself included.

Well that's what you get for buying a Prius. My vision for the future is that when the real eco-saver cars come out (Hydrogen fuel cell vehicles) the Greenies will attack the Prius owners, in the same vein as people wearing fur. Unfortunately this isn't likely

[RSgerry]

Originally Posted by barbarian

good news..

the more GM is buried under rubles of huge debts, the better it is

good riddance :

another insightful post highlighting your deep knowledge of economccs, and more specifically, the free market. you never said whether you would be prepared to do your happy dance in front of those workers who lost their jobs or not. i am sure they will really appreciate your joy when they cannot make the mortgage repayments, pay the electricity bill or put food on the table. i am sure you would cheer them up no end.

there is something wrong with you. :

[madmelon]

Originally Posted by BadMac

Holden will remain viable, says GM
4:31PM Wednesday Feb 18, 2009

...

"With this support, Holden is projected to be a viable operation, making a positive contribution," the GM plan said.

...

...which would indicate that as it stands, HOLDEN IS NOT A VIABLE OPERATION.

[Sprint XR8]

Holden workers face job cuts as GM cries for help
http://money.ninemsn.com.au/article.aspx?id=753708
By Emma Thelwell, ninemsn Money, with AFP
The fate of Holden's 6,500 Australian workers hangs in the balance today after parent company General Motors announced plans to axe jobs and begged the US government for a huge cash injection.

GM unveiled a massive restructuring plan that includes 47,000 worldwide job cuts and said it could need a further US$22.6 billion (A$35.4 billion) in government loans to keep it afloat.

The largest automaker in the US, GM plans to close plants, wipe out several brands, slash production and revamp its offerings in a bid to return to "sustainable profitability in 24 months".

"These are the kind of actions we need to take to survive the current industry crisis, and position GM for sustainability and success," GM chairman and chief executive Rick Wagoner said.

More than half of its planned job cuts - some 26,000 - will come from outside the United States.

GM said it will speed up the restructuring of its Asia-Pacific arm, after admitting that some of the projects in the region are "no longer financially feasible", fuelling fears that the axe may fall at its Holden base in Australia.

Holden has already cancelled the launch of the Cadillac in Australia.

Last month, managing director and chairman Mark Reuss said the roll out of the Cadillac would be delayed "indefinitely" due to the downturn of the Australian car industry and the broader global financial meltdown.

GM said some projects at its Asia-Pacific arm "will not proceed without financial support from either the respective governments or from other partners. GM is holding discussions with its stakeholders to address the required support."

Holden Australia could not be reached today for further comment on the possible job losses.

However, GM said that Holden's local production had become "more challenging", hinging heavily on grants from the Australian government and the success of plans for a new, fuel-efficient vehicle. The current support should ensure that Holden remains a "viable operation", GM said.

The motoring giant announced that it could need up to another US$16.6 billion in loans from the US government by 2011 beyond the US$13.4 billion bailout package approved in December, should economic conditions deteriorate further.

Even more help might be needed if GM has to make contributions to its US pension funds in 2013 and 2014.

The automaker said it is also asking for funding support from the governments of Canada, Germany, the United Kingdom, Sweden, and Thailand and has "included an estimate of six billion dollars in funding support by 2010 to provide liquidity specifically for GM's operations in these countries."

GM said plans to close 14 US plants by 2012, five more than were included in a December plan submitted to Congress.

It also plans to cut its US vehicle offerings by 25 percent and slash its US brands in half by selling or phasing out Swedish mark Saab, the hulking Hummer brand and its Saturn operations. Pontiac will become a "niche" brand sold alongside Buick and GMC.

GM said it has reached a tentative agreement to further reduce its US labour costs and plans to slash its total US workforce to 72,000 by 2012 - from 92,000 in 2008.

GM's statement came as it and Chrysler presented their restructuring plans to the US Treasury to convince government overseers of their long-term viability, one of the conditions of a US$17.4 billion government bailout.

White House spokesman Robert Gibbs said after receiving the reports that "going forward, more will be required from everyone involved - creditors, suppliers, dealers, labor and auto executives themselves - to ensure the viability of these companies going forward."

[MYVYSS]

Originally Posted by barbarian

good news..

the more GM is buried under rubles of huge debts, the better it is

good riddance :

I seriously think your shoe size has a number greater than your IQ...with Holden gone, how long do you honestly think Ford Australia would last....Good luck driving your FWD taurus imports from the USA, or only the little 4cyc and diesel cars out of Europe...bye bye Falcon and all RWD V8's in Australia....

The reason ford never asked for a handout, is they cannot meet the criteria and restructure in the time frame...unless something is done very very quickly...all three US manufacturers are GONE...as we know them today...which would be tragic....

[jphanna]

Out of the Big 3, the only company that for probabaly a few decades was on shaky ground was Chrysler. Both in USA and Australia they were on the fringe of the success/failure cycle.

never in my life was GM and Ford ever in that category, although holden did have a hiccup in the early 80's, the might of GM USA was always there to bail em out.

this is a sad day indead, and you have to wonder how long out traditional rear drive aussie designed and built cars will be around for.

[SB076]

Originally Posted by MYVYSS

I seriously think your shoe size has a number greater than your IQ...with Holden gone, how long do you honestly think Ford Australia would last....Good luck driving your FWD taurus imports from the USA, or only the little 4cyc and diesel cars out of Europe...bye bye Falcon and all RWD V8's in Australia....

The reason ford never asked for a handout, is they cannot meet the criteria and restructure in the time frame...unless something is done very very quickly...all three US manufacturers are GONE...as we know them today...which would be tragic....

I think Ford have more cash available to them (moreso than GM and Chrysler) Ford went to the neg. table with GM and Chrysler but my understanding is they didnt like the conditions that were imposed by the government (in regards to the handout so they have left the door open, but at this stage they are not submitting a restructing plan as GM and Chrysler are) From my understanding even if the bailout goes ahead it will be a very different GM and Chrysler (due to the conditions they need to meet etc)

[BENT_8]

Holdens wont go all together, they'll just downsize as they did in the eighties.
I was told 4 months ago that by the end of March they'll be only running 1 shift at Elizabeth.
I'd say they'll drop 1000 workers.

Not good considering Nylex and another parts supplier in the area have gone belly up too.

[TZENU]

Proves to show that the US economy is going to continue sliding... But i wonder where rock bottom is???? Any one of those big three go down and it would spell absolute disaster for the US...

[Lukeyson]

ouch !!!!! i dont really care about the company so much, its 47000 families who have to worry about finding another job and how they will pay the mortgage/rent and feed their family.

But i wouldn't like it if Holden left or GM for that fact, it will just make everyone elses cars get dearer.

[TS50]

Originally Posted by TZENU

Proves to show that the US economy is going to continue sliding... But i wonder where rock bottom is???? Any one of those big three go down and it would spell absolute disaster for the US...

So So right
if GM goes belly up
they will be for the whole world economy a real big problem
I hope they can get some sort of rescue going for them

Also isnt the old saying, you are only as good as your opposition?
So Ford need GM, to show what a superior product they make

[BadMac]

Why is Ford not being caught up in this to the same extent that GM are?
Have a read, it was written in December but still applies today.

Ford's debt gamble pays off
12:23PM Thursday Dec 11, 2008

Alan Mulally's decision to leverage assets for debt has paid off for Ford, he says.

DEARBORN - A decision Ford CEO Alan Mulally made during his first months on the job may turn out to be the automaker's saving grace.

In 2006, the chief executive fresh from Boeing wanted to concentrate on making smaller, more fuel efficient cars, matching production with consumer demand, and focusing on the Ford, Lincoln and Mercury brands.

The company has announced the closure of 17 factories and eliminated 50,000 jobs since its latest restructuring started in 2005, many through buyout and early retirement offers. It sold non-Ford brands Jaguar, Land Rover and Aston Martin and is studying the sale of Sweden's Volvo. Smaller cars produced by its European unit are coming to the US starting in 2010.

But to fulfil that vision for the company, Mulally needed at least $17 ($32) billion. He took his plan - one very similar to the one Ford submitted to Congress last week - to 40 banks at a time when credit flowed freely, and he ended up raising $23.5 billion. He bet all of Ford's buildings, stock, intellectual property, stakes in foreign automakers, and even its trademark blue logo as collateral.


"At the time people were wondering if we were being too aggressive to leverage assets," Mulally said in an interview. "I erred on the side of being conservative on financing."

The move to secure credit proved to be key to Ford's assertion that it doesn't need an emergency loan from Congress now like General Motors and Chrysler LLC do. While the company boasts how its fleet and future vehicles set it apart from its Detroit competitors, its ability to maintain operations through 2009 without government aid is a key differentiator.

The company had $18.9 billion in cash on hand on Sept. 30 and still had about $10.7 billion of its credit lines available.

Yet Ford could be standing on a melting iceberg. The company spent $7.7 billion more than it took in the third quarter as US auto sales fell, reaching an annualised sales rate of 10 million in November, the lowest level since October 1982.

Should industry wide US auto sales drop to new lows in 2009, Ford says it would need to come to the government for help. In the plan it submitted to Congress last week, it asked for access to a $9 billion line of credit just in case.

Ford's F-series pickup trucks are still the best-selling vehicles in the US But the company needed to slim down from its steady truck and SUV diet, as $4-a-gallon gas scared consumers away from the vehicles.

The company announced plans in July to transform three North American truck plants to make small, fuel-efficient cars that it already sells in Europe. A plant in Wayne, Michigan, that made Lincoln Navigator and Ford Expedition SUVs will start churning out Ford Focus compacts in 2010.

The company's goal is to take leadership in fuel economy with direct-injection turbocharged engines, new hybrid gas-electric powertrains and eventually electric vehicles. Competitors, including Chrysler, GM, Toyota and Honda, have or are working on similar technologies.

Besides upgrades of the conventional models, Ford rolled out new versions of its Fusion and Milan sedans, including hybrid models, at the Los Angeles Auto Show last month with fuel economy that beats current offerings from Toyota and Honda.

"Longer term, it looks as if these are the right moves for Ford," said Aaron Bragman, research analyst for automotive marketing for IHS Global Insight in Troy, Mich.

But in the short term, Ford needs US consumers to regain confidence in the economy and return to showrooms, said Bragman, who thinks even a minor dip below next year's expected sales level of 10.5 million to 11 million would force Ford to take government aid.

"It all depends on how spooked consumers are in 2009 to buy enough cars to keep them off the government dole," he said.

Ford never thought the credit it lined up would be needed to run basic operations, at least until car sales plummeted this year.

"None of us thought it would go as deep as it was going to go and we would have to use it all," Mulally said.

And if GM, Chrysler or both declare bankruptcy, it could drag down parts suppliers and force Ford into the same situation, Mulally said. Any long-term gains in market share would be overshadowed by short-term pain in a disrupted supply chain, and negative customer perception.

"I can't predict the future, and this thing might degrade further, even Ford with its dynamite plan might have to need a small bridge loan," Mulally said. "We don't need it now."

In that sense, Ford appeared to take a back seat at Congressional hearings in November, and it reiterated the changes it is already making when Mulally returned to Washington last week.

"When I heard Mulally's presentation, it sounded like an advertisement for Ford, rather than a plea for help," said Bruce Belzowski, associate director of the Automotive Analysis Division at the University of Michigan's Transportation Research Institute. "It's more a laid back strategy but a serious one. They're very supportive of getting government to help the companies."

Mulally said his pilgrimages to Congress had little to do with Ford's position, but more of a gesture to "stand tall" with the US auto industry.

"I have a plan, it's a solid plan. I have the money, but I'm there standing with the industry," he said. "My competitors said they're in dire financial straits. Having a bridge loan and keeping it going is right for the economy and right for the United States."

Among the requirements in the proposed bailout legislation is the appointment of a "car czar" to oversee GM and Chrysler with authority to yank the loans if the companies don't make substantial progress toward restructuring.

Mulally said Ford has completed much of the restructuring that Congress is demanding of the other two, and it anticipates no further cuts will be necessary as long as the US auto market doesn't worsen considerably.

"I think they're in the best position," said Brad Coulter, a turnaround consultant for O'Keefe and Associates in Oakfield, Michigan. "If Ford sees harsh medicine being doled out, and if they want to back off, they can."

- AP

[jphanna]

Lets hope it doesnt get much worse than the curent situation....but if it does you know what that may mean.

a cashed up Japanese company coming in for the kill...of either GM or Ford.

[EgoFG]

Originally Posted by BENT_8

Holdens wont go all together, they'll just downsize as they did in the eighties.

Or get sold to the highest bidder.

[aualright]

Originally Posted by jphanna

Lets hope it doesnt get much worse than the curent situation....but if it does you know what that may mean.

a cashed up Japanese company coming in for the kill...of either GM or Ford.

Or a Chinese company as they are doing with a couple of Mining companies. That is, shore up their positions in these industries at the bottom of the market.

****

[TS50]

Originally Posted by jphanna

Lets hope it doesnt get much worse than the curent situation....but if it does you know what that may mean.

a cashed up Japanese company coming in for the kill...of either GM or Ford.

I think all the Jappannesse companises are struggling too
Dont think many are cashed up

[BENT_8]

I'd have thought the Mitsubishi plant would have been a better option if an asian company were to consider manufacturing in SA.

I hate to imagine Elizabeth in 5yrs if the plant does close..3000 extra benefit recipients = ghetto!

[barbarian]

Good riddance to bad chit, may GM crash and burn like never before :

This is capitalism folks, the weak dies and is taken over by the stronger side.. get used to it

If GM is that incompetent to run a profitable business it just goes to show how useless they are

[pmpdau]

Buddy you're not getting the point.......Capitalism is a principle that requires two or more sides for it to be viable, having one "all powerful" company would just make their products shabby due to a lack of competition.

Not to mention the fact if you had done your research instead of making broad generalisations you would have figured out that GM is vital for Fords existence as they share a majority of parts manufacturers, no GM = broke parts companies which in turn = no parts for Ford.

And I hardly regard a global economic recession as incompentency on GM's part, I actually give them kudos for trying to keep themselves afloat and maintaining jobs even at the expense of their own company, a pity that so many people will lose their jobs to an unavoidable crisis....

:(

[barbarian]

Ford's biggest arch rival is Toyota, since Toyota has already become the no.1 auto gaint and has a larger market share

[RSgerry]

barbarian, you claim to be a motorsport enthusiast. have you been watcing to the various forms of motorsport as a result of the economic situation? what do you think would happen to the V8 series should GM decide that spending money in that area is a waste? or are you too dim to read?

seriously, i hope you get to experience job loss first hand. it is unpleasant, but for someone as thick as you, it would be a pleasure. should it happen, please post up that it happened and your address so we can come over and laugh at you in the same way that you think 47000 people losig their job is funny.

i have stepped on more intelligent things than you. fool.