Monday, May 18, 2009

GM - The Sahpe of Things to Come?

Latest new courtesy of The Indianapolis Business Journal - Hubler of Shelbyville on GM closure list:
"Hubler Chevrolet Center Inc. of Shelbyville and several other General Motors dealerships in Indiana are on the chopping block after receiving notice Friday that their dealership agreements would not be renewed when they expire late next year.

But most dealers are keeping quiet about the notifications as they hold out hope they can persuade GM that they deserve to stay open.

Nationally, about 1,100 GM dealers have received notice. But unlike Chrysler LLC, which released a list Thursday of almost 800 dealers it plans to terminate, GM is keeping its list secret.

Joe Munson, vice president of Hubler Chevrolet told The Shelbyville News that he was surprised to receive the closing letter, particularly because of the strong sales his dealership has logged since opening in Shelbyville in 1988."

GM's Downsizing Strategy Moving With Great Efficiency comes from
"Employing the efficiency of an automotive assembly line, General Motors has laid off close to 3,400 salaried workers in recent months, moving individual employees from their desks and out the door in a half-hour’s time.

The GM layoffs are part of a last-ditch effort to “right-size” its workforce in order to avoid the kind of bankruptcy filed by Chrysler on Thursday, April 30.

Yet it looks like the latest round of layoffs is just that—the latest round, giving employees who remain at GM little relief.

May 1 marked a soft deadline for accomplishing the first round of layoffs. It also marked the beginning of a pay cut—3 to 10 percent, depending on a person’s rank—for many of the remaining 26,250 salaried workers in the U.S.

Now the company is looking to its next major deadline of June 1, when, according to a regulatory filing last week, GM said it would run out of cash unless it receives more financing and debt relief. In the filing, GM said it expected additional manpower reductions among its salaried workforce. The company also said it would trim its hourly workforce by 7,000 more than it had outlined in its first restructuring plan submitted February 17.

Then there was Experts say GM bankruptcy almost inevitable from The Muncie Star Press
To remake itself outside of court, GM must persuade bondholders to swap $27 billion in debt for 10 percent of its risky stock. On top of that, the automaker must work out deals with its union, announce factory closures, cut or sell brands and force hundreds of dealers out of business -- all in three weeks.
"I just don't see how it's possible, given all of the pieces," said Stephen J. Lubben, a professor at Seton Hall University School of Law who specializes in bankruptcy.

Meanwhile. Anderson's GM retirees shiver but not with anticipation.

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