GM CEO Ric Wagoner is set to announce more details on the company's second phase of its on-going restructuring plan. The plan basically inolves cost-cutting measures in an attempt to bring back minvestors' confidence due to lackluster sales.
'Cost-cutting' measures include the ever-so-familiar job-cuts that have become increasingly popular these days thanks to the dramatic oil price hikes. Because the developments of the company's next-generation full sized SUVs and pickup trucks have been frozen, white collar workers as well as the engineers specifically assigned for these projects are said to be the ones going to be affected the most.
It is the company's goal to adjust its product lineup to be more competitive when it comes to fuel efficiency: a trademark for a lot of the Asian car manufacturers.
In addition, the company is also said to specify its cash conservation strategy that will likely include te elimination of dividend payments. According to analysts, the GM is preparing to raise its capital to carry it over until 2010 when the company is going to benefit from huge savings due to the contract it signed with UAW last year: one of the few bright spots in an otherwise trying moment in the automotive industry.
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