GM Death Watch
GM announced a plan to cut costs by $10 billion, suspend its common stock dividend and sell up to $4 billion in assets.
This is the second restructuring in just six weeks for the beleaguered auto maker.
The plan, intended to raise $15 billion in liquidity through 2009, addressed the most urgent Wall Street concerns
about pressure on GM's $24 billion in remaining cash. (Which will be burned through in short order.)
GM's major union UAW will be effectively loaning $1.7 billion at 9% interest until the deferred payments to the health care account are made.
GM is cutting health care for U.S. salaried employees older than 65 as of Jan. 1, 2009
GM stock is down 60% this year and is the worst performing of the Dow 30.
Since CEO Rick Wagoner took over in 2000, the shares have fallen 87% and are at a 54 year low; GM has cut its U.S. salaried workforce to 32,000 from 44,000.
GM has not posted a profit in the last 3 years while losing $51 billion;market share is at a low not seen since 1925; GM has not suspended a divident since 1922.
Hattip to Bloomberg.
The Nattering One muses... we have gone on record re: GM's demise here
http://naybob.blogspot.com/2006/04/tick-tock-more-on-gm-timebomb.html
and Wagoners handywork and his $14 million salary here.
CEO Rick Wagoner: "We do have the ability to take actions to generate cash." and announced that cash bonuses for executives will be eliminated.
Isn't that special? Perhaps the executives should be eliminated?
It is my firm belief that almost anyone from the rank & file could do a better job than these three clowns have.
2007 Compensation: COO Henderson $7.5 million; VC Lutz $6.8 million; CEO Wagoner $14.4 million.
Thats a quick $29 million saved, and I'll do all three of their jobs, better than they can, GRATIS with limited stock options.
This is the second restructuring in just six weeks for the beleaguered auto maker.
The plan, intended to raise $15 billion in liquidity through 2009, addressed the most urgent Wall Street concerns
about pressure on GM's $24 billion in remaining cash. (Which will be burned through in short order.)
GM's major union UAW will be effectively loaning $1.7 billion at 9% interest until the deferred payments to the health care account are made.
GM is cutting health care for U.S. salaried employees older than 65 as of Jan. 1, 2009
GM stock is down 60% this year and is the worst performing of the Dow 30.
Since CEO Rick Wagoner took over in 2000, the shares have fallen 87% and are at a 54 year low; GM has cut its U.S. salaried workforce to 32,000 from 44,000.
GM has not posted a profit in the last 3 years while losing $51 billion;market share is at a low not seen since 1925; GM has not suspended a divident since 1922.
Hattip to Bloomberg.
The Nattering One muses... we have gone on record re: GM's demise here
http://naybob.blogspot.com/2006/04/tick-tock-more-on-gm-timebomb.html
and Wagoners handywork and his $14 million salary here.
CEO Rick Wagoner: "We do have the ability to take actions to generate cash." and announced that cash bonuses for executives will be eliminated.
Isn't that special? Perhaps the executives should be eliminated?
It is my firm belief that almost anyone from the rank & file could do a better job than these three clowns have.
2007 Compensation: COO Henderson $7.5 million; VC Lutz $6.8 million; CEO Wagoner $14.4 million.
Thats a quick $29 million saved, and I'll do all three of their jobs, better than they can, GRATIS with limited stock options.
Comments