GM's plan

Detroit Free Press artcle: GM: Shrink brands, pay, jobs, dealers

PDF of GM Plan: Restructuring Plan for Long-Term Viability (37 pages)

Excerpts:

Hummer has recently been put under strategic review, which includes the possible sale of the brand. GM will also immediately undertake and expedite a strategic review of the Saab brand globally. Finally, Saturn, which has performed below expectations, has a unique franchise agreement and operating structure. As part of the Plan, the company will accelerate discussions with Saturn retailers and explore alternatives for the Saturn brand.

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GM will launch the ground-breaking Chevrolet Volt in 2010. As indicated in Table 8, GM is investing over $750 million in the Volt and its propulsion system, prototypes of which are currently on test at GM‘s Milford Proving Grounds. An extended-range electric vehicle, the Volt will deliver up to 40 miles on a single electric charge, well within the daily commute of approximately 80% of Americans. Volt represents a fundamental reinvention of the American automobile industry, creating new growth and environmentally-friendly/sustainable industries, and represents a giant step toward energy independence. No other car company has made such a commitment to the American people. It involves the development of advanced batteries, power electronics, systems integration and manufacturing methods. The company‘s product plan includes additional vehicles utilizing Volt‘s extended-range electric vehicle system and potentially, the assembly of battery packs in the United States.

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As indicated, the number of GM retailers is expected to decline to 4,700 by 2012. This will occur primarily in metropolitan and suburban areas where GM has too many dealers to serve the market. In the Plan, it is projected these dealers will be reduced by 35%, increasing annual throughput for the remaining outlets to a more competitive level with other high-volume manufacturers. GM‘s distribution strength in rural areas, which is a significant competitive advantage, will be largely preserved.

Comment: I understand they are in danger of running out of cash this month! Without aid, it could run out of cash this month: "General Motors Corp. said Tuesday it could run short of the cash it needs to operate by the end of this month if Congress doesn't approve $4 billion in emergency federal loans ... 'The first $4 billion is crucial,' GM President and Chief Operating Officer Fritz Henderson said. 'Absent support, we can't continue to operate.'"