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GM to cut 25,000 jobs by '08
CEO says automaker plans unspecified number of plant closings.
June 7, 2005: 9:54 AM EDT
NEW YORK (CNN/Money) - Embattled automaker General Motors Corp. anticipates an unspecified number of plant closings in the next three and half years to cut U.S. employment by 25,000 workers, Chairman and CEO Rick Wagoner told shareholders Tuesday.
The head of the world's No. 1 automaker did not give any details other than to say GM needs to cut capacity by the end of 2008.
He said the company's goal is to trim U.S. capacity so that the company gets to 100 percent utilization or better.
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GM (up $0.58 to $31.00, Research) also announced plans to buy more components from suppliers outside the United States, and reported it couldn't yet be sure if it would win needed health care cost reductions from the United Auto Workers union.
A spokesman for the union wasn't immediately available for comment.
GM's UAW contract essentially forces it to pay employees during the life of the contract, even the hourly worker's plant is closed and he or she is laid off. But those protections only run through fall of 2007, when the current four-year pact with the union ends.
GM's Web site says it now has about 181,000 employed in North America, including plants in Canada and Mexico.
Wagoner said GM is committed to trying to win union approval for health care cost savings under the current labor agreement, but added that he couldn't promise shareholders he'd be successful.
"In recent weeks, we have been in intense discussions with the UAW and our other unions focused on a cooperative approach to significantly reduce our health care cost disadvantage," he said. "All parties are working hard on it, in the spirit of addressing a huge risk to our collective futures while providing greater security and good benefits for our employees."
Wagoner said that, for now, GM is committed to trying to trim health care costs in cooperation with the union. His prepared remarks did suggest that there are other options available to the company to save on health care if the union does not agree to changes, although he added, "I don't believe that it serves a useful purpose to speculate on that."
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Same ole stupid story. These CEO's don't get it. They build lame cars, cut out the classics and milk the current production for 3 years too long and have the balls to blame everything on health care. I'm not excited to buy a new 48k truck that's half made from red china. POOR LEADERSHIP!!!!!!!!!!!!!!!! FIRE THE CEO WITH NO BENIFITS OR SEVERANCE PACKAGE!!!!!!!!!!
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I have to agree.... If GM keeps it up, they will be passed by Toyota as #1 in sales. thats pathetic.
Toyota has been negotiating to open new production plants in the U.S. Hopefully those lay-offs from GM will find jobs at Toyota
GM needs to clean up their act. That goes for everyone, management and labor. Being uncompetitive is an institutional thing.
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I have to agree.... If GM keeps it up, they will be passed by Toyota as #1 in sales. thats pathetic.
Toyota has been negotiating to open new production plants in the U.S. Hopefully those lay-offs from GM will find jobs at Toyota
GM needs to clean up their act. That goes for everyone, management and labor. Being uncompetitive is an institutional thing.
To tell you the truth Toyota is a already in gear to pass them up in the near future. They have the Scion, and Lexus lines available. If they step up their trucks to compete with the F250's and GM's HD's I think there is no stoping them.
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To tell you the truth Toyota is a already in gear to pass them up in the near future. They have the Scion, and Lexus lines available. If they step up their trucks to compete with the F250's and GM's HD's I think there is no stoping them.
Jap trucks still can't compete. Their made out of recycled american cars. They fall apart when put to the test of what a real truck can do. They're perfect for a guy with a dirtbike or the trip to home depot for some plants but not much more than that.
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Fall apart? My last few Toyota trucks had well over 140K miles on them without any problems. Didn't even burn oil unlike the last chevy I had which burned oil since day one to the tune of 1 quart every 2K miles. I also tow a boat that's 6,000 pounds with a Tundra and it handles the load great.
Both Nissan and Toyota plan on introducing 3/4 ton diesel truck into the US market in the next year or two. After that the domestic's are in real trouble.....
Last I checked, the domestics don't even produce their own Diesels or heavy duty tranny's and most of the trucks are built in Canada and Mexico. Whatzzzsup with that?
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I hate to say it but my Toyota truck was built 100% better than my chevys and Fords. We ran it hard and it held up just fine. ;) Why are most hard-core rock crawling wheelers built are Toyotas? :notam:
If Toyota would actually make a full size truck that is actually "full size" they would make a killing.
I know all about Toyota sales. they are expected to overtake GM very soon as sales leader.
Its funny but the CEO of Toyota is afraid of a backlash once that happens, so Toyota is looking for joint-ventures where they invest within the U.S. borders such as opening manufacturing plants here (i.e. employing U.S. workers), etc.
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If Toyota would actually make a full size truck that is actually "full size" they would make a killing.
Have you seen the newer Toyota DoubleCab? I think if you saw one parked next to a competing Chevy, Dodge, or Ford, I think you'd be surprised. Full sized deep bed and impressive sized cabin. And they really know how to use technology in an engine to make strong reliable power. 282HP and 335 lb of torque (a just a little over 3K rpm) out of 4.7L is pretty darn respectable.
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not yet.. they were in serious need of "upsizing" for more than 10 years. If they finally did it, then its about time. :D
Nissan looks like they finally released a full size too but I haven't looked at that either.
Their full size trucks were always 2/3 the sized they need to be for the American market. Must have been those 2/3 sized short-ass japanese engineers. ;)
Have you seen the newer Toyota DoubleCab? I think if you saw one parked next to a competing Chevy, Dodge, or Ford, I think you'd be surprised. Full sized deep bed and impressive sized cabin. And they really know how to use technology in an engine to make strong reliable power. 282HP and 335 lb of torque (a just a little over 3K rpm) out of 4.7L is pretty darn respectable.
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LOL! They don't eat steak and potatoes like we do here!
Even the die hard Toyota Truck owners call them 7/8's full sized which is just about right. But with the new Doublecab - its changed. The back seat is huge and the bed is a little over 6' long and much deeper/wider.
I have one and its much harder to park than my former 7/8's scale Tundra.
I'm hearing pretty solid rumors that a 5.4L V8 and an available diesel will come up in 2007 in a 3/4 ton variant. I might be upgrading about then...
