General Motors (NYSE: GM) is finally taking a step in the obvious direction. The company is now apparently cutting about 250,000 units of production in the first quarter. This will be accomplished via temporary shut downs of its manufacturing and assembly plants for about 30% of the first quarter in 2009. Some of the cuts include numbers previously given, but some do not.
UPDATE TO STORY (12:31): The Detroit Free Press first broke this data and a press release has now confirmed the data.
This is a scenario where almost everyone is at fault. It is not just aunion problem, it is not just an economic problem, and it is not just amanagement problem.
We now believe Rick Wagoner’s chances of staying on as Chairman & CEO are growing more and more slim. We named him as a CEO TO GO FOR 2009 and the chances of his departure (willingly or forced) are rising each day.
Like it or not, major changes are coming to this U.S. automakingindustry. Management is going to be under a microscope. The UAW isgoing to have to accept that its ranks are going to earn less money.More dealerships are likely to shrink or go under. And these companiesare going to have to continue shrinking. The list goes on.
Jon C. Ogg
December 12, 2008