As if things couldn't get worse for the struggling car maker, General Motors has announced more layoffs at parts-stamping, engine and transmission plants in North America.
General Motors announced a layoff of 1,900 employees for the first quarter of 2009. This is in addition to the 3,600 layoffs that GM announced on November 7,2008. GM is in a serious crunch! Although the company is still hoping with struggling Chrysler, neither party can find a financier to back the deal. Wall Street just announced that GM stocks hit a new 65 year low, and that's not counting the number of white collar jobs that will be lost as a result of GMAC's announcement that it lost $2.52 billion dollars in the third quarter.
Although GM and members of the Congressional wing have petitioned the Bush Administration and President Elect Obama to include the struggling automobile industry in the $700 billion dollar bailout, the result is that it might be too late for GM. Let's say that GM receives $25 billion tomorrow. Granted the company will stay afloat, but what happens if car consumers do not turn out to purchase GM's products? Then it becomes likely that the company will burn through the cash and again turn to the government to bail it out.
It is not unheard of for companies as established as GM to file for Chapter 11 protection. There is nothing wrong with it. In fact, if the company filed for Chapter 11 then it would give the automaker some leverage as it pertains to dealing with the UAW. I have one thought that keeps coming to me as I grapple with the issues that are dragging down the automobile industry, which I still believe is the back bone of this great country. Innovation is the only thing that will save General Motors, Chrysler, Ford, Toyota, Honda and any other auto maker worth their weight.
It's time for the automotive industry to come up with something fresh and new for their customers. Whether it's new product design (remember what the Chrysler 300 series did for their bottom line), or advances in new forms of cheaper fuel, the auto industry needs to provide a new mechanism to grab the country's attention.
GM, Chrysler, Ford...if you build it WE will come.
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And every thing they want to tell anonymously.And www.layoffgossip.com is providing you that platform.
Posted by: Chetan | January 16, 2009 at 01:26 AM