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You probably heard the rumors over the weekend that GM would be eliminating the Pontiac brand. This morning GM held a news conference announcing this major change along with additional moves to ensure the company is profitable again in 2010.
Significant changes include:
- A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand.
- A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service.
- Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.
- Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.
Below is a link to a blog post by President and CEO Fritz Henderson that outlines GM's new restructuring plan and links to two news releases (one on the viability restructuring and another on the bondholder offer). It also has a replay of the news conference if that's of interest to you. I attached a text version of this too.
GM FastLane
<<GM FastLane Blog by CEO Fritz Henderson on New Restructuring Plan.4.27.09.doc>>
Significant changes include:
- A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand.
- A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service.
- Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.
- Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.
Below is a link to a blog post by President and CEO Fritz Henderson that outlines GM's new restructuring plan and links to two news releases (one on the viability restructuring and another on the bondholder offer). It also has a replay of the news conference if that's of interest to you. I attached a text version of this too.
GM FastLane
<<GM FastLane Blog by CEO Fritz Henderson on New Restructuring Plan.4.27.09.doc>>