GM’s Pre-Congress Hail Mary… Cuts & Hikes (GM)
General Motors Corp. (NYSE: GM) is doing almost whatever it can to get aggressive in cost cuts and streamlined operations ahead of its first post-bailout review next week. Some of the cuts were known, and some are much greater than…
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General Motors Corp. (NYSE: GM) is doing almost whatever it can to get aggressive in cost cuts and streamlined operations ahead of its first post-bailout review next week. Some of the cuts were known, and some are much greater than expected.
GM (GM) now says that it expects a rise in production in the second quarter from a lower target in Q1. This might catch many bears and doom and gloomers off guard, but the company said specifically that this is not a signal of demand recovering. This is more to an “inventory balancing.”
The company is also cutting its salaried positions by 10,000 down to a level of 63,000. Some of this was telegraphed in December and more recently, but that is more than 10% of the workforce and more than many would have guessed. It looks like 3,400 of those cuts are US-based cuts and most will be made by May 1.
There also appears to be some temporary pay cuts for a majority of salaried employees. That will take place from May 1 to Year-End.
This has shares up 2.5% at $2.90 in early trading.
Jon C. Ogg
February 10, 2009
Contact [email protected] for any questions or corrections.
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