Reality Check: State of Gm, Ford, and Chrysler Poses Serious Issues for Detroit As We Know It
Michigan Chronicle › August 27, 2009
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Summary
GM's plan calls for a series of aggressive cost-cutting measures, including slashing salaried worker costs by 20 percent by cutting jobs and retiree health care benefits to save or raise about $15 billion. GM also says it will cut marketing and advertising budgets and capital expenditures. In addition, the automaker will sell more assets. GM is already exploring the sale of Hummer, and some other brands owned by the automaker are being considered for potential sale.
Some analysts have said the automaker will even need to reevaluate spending on events like Detroit's GM River Days, GM Style held in the city in conjunction with the North American International Auto Show, and other endeavors. Thought being, lavish parties and major celebrity events are hard to justify when people are losing their jobs if they don't help to sell a lot of cars.It is now crystal clear that the days of Detroit being "the" automotive capital of the world are behind us. The car market is much more competitive, we're living in a more global economy, and the idea of "buying American" no longer holds the weight that it once did among consumers, hi fact, in most other major U.S. cities, you tend to see more foreign vehicles than American.[...] on a local and regional level, what would be the fallout for Detroit and Michigan? GM's plan calls for a series of aggressive cost-cutting measures, including slashing salaried worker costs by 20 percent by cutting jobs and retiree health care benefits to save or raise about $15 billion. Some analysts have said the automaker will even need to reevaluate spending on events like Detroit's GM River Days, GM Style held in the city in conjunction with the North American International Auto Show, and other endeavors.See the full content of this document
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Reality Check: State of Gm, Ford, and Chrysler Poses Serious Issues for Detroit As We Know It
Most already knew that when General Motors Chairman and CEO Rick Wagoner took the podium last week at the Renaissance Center, it wasn't going to be good news.
No glitzy car or gassaving crossover that GM could have rolled out during the press conference could downplay that reality.Specu...See the full content of this document
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