Richard Tafoya
Nov 30th, 2008, 10:23 PM
NY Times:
http://www.nytimes.com/2008/12/01/business/economy/01auto.html?_r=1&hp
General Motors, the biggest of the troubled car companies, is expected to propose a significant shrinking of its North American operations, including shutting more factories and streamlining its sprawling brand lineup, according to people with knowledge of G.M.’s deliberations.
One move under discussion, for example, would have G.M. buy out dealers that exclusively sell Saturns and market the cars through its Buick-Pontiac-GMC dealers instead, according to these people.
G.M. is also likely to propose moves that would require cooperation from the United Automobile Workers union, including delaying the company’s $7 billion payment to the union’s retiree health care fund.
The Ford Motor Company, however, is not likely to propose more cuts, as it is further along than Chrysler and G.M. in shifting to a more fuel-efficient lineup of vehicles. It also has more cash to weather the downturn. Instead, people with knowledge of Ford’s strategy say the automaker is considering more symbolic moves, including reducing the pay of its chief executive, Alan R. Mulally, who earned more than $21 million last year.
The third automaker, Chrysler, which is privately owned, has acknowledged it is running out of cash and may tell Congress that it needs a merger or alliance with another company to survive long term.
The U.A.W., whose members build cars for all three companies, is not involved in developing any of the plans, even though its political influence is a crucial factor in whether a bailout gets approved.
On Tuesday, G.M., Ford and Chrysler are scheduled to deliver separate aid requests to lawmakers, who will hold hearings on the plans later in the week.
http://www.nytimes.com/2008/12/01/business/economy/01auto.html?_r=1&hp
General Motors, the biggest of the troubled car companies, is expected to propose a significant shrinking of its North American operations, including shutting more factories and streamlining its sprawling brand lineup, according to people with knowledge of G.M.’s deliberations.
One move under discussion, for example, would have G.M. buy out dealers that exclusively sell Saturns and market the cars through its Buick-Pontiac-GMC dealers instead, according to these people.
G.M. is also likely to propose moves that would require cooperation from the United Automobile Workers union, including delaying the company’s $7 billion payment to the union’s retiree health care fund.
The Ford Motor Company, however, is not likely to propose more cuts, as it is further along than Chrysler and G.M. in shifting to a more fuel-efficient lineup of vehicles. It also has more cash to weather the downturn. Instead, people with knowledge of Ford’s strategy say the automaker is considering more symbolic moves, including reducing the pay of its chief executive, Alan R. Mulally, who earned more than $21 million last year.
The third automaker, Chrysler, which is privately owned, has acknowledged it is running out of cash and may tell Congress that it needs a merger or alliance with another company to survive long term.
The U.A.W., whose members build cars for all three companies, is not involved in developing any of the plans, even though its political influence is a crucial factor in whether a bailout gets approved.
On Tuesday, G.M., Ford and Chrysler are scheduled to deliver separate aid requests to lawmakers, who will hold hearings on the plans later in the week.