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GM chairman Ed Whitcare says it is hard to attract talent with pay restrictions, reports CNBC's Phil Lebeau.
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Current DateTime: 10:44:56 12 Nov 2009
LinksList Documentid: 30830730
Expiration DateTime: 11/12/2009 10:45:30 AM
    • GM Chairman Urges Easing of Pay Caps  11 Nov 2009

        GM chairman Ed Whitcare says it is hard to attract talent with pay restrictions, reports CNBC's Phil Lebeau.

    • GM's Road Ahead  11 Nov 2009

        General Motors Chairman Ed Whitacre is calling on the Obama administration to loosen pay caps. CNBC's Phil LeBeau has more on this and GM's road ahead.

    • Car Imports Widen UK Trade Gap  10 Nov 2009

        The UK's trade deficit widened to an eight-month high in September as the number of imported cars rose sharply. Neil MacKinnon from VTB Capital spoke to CNBC about the outlook for the UK and sterling.

    • The Nikkei Business Report  09 Nov 2009

        The Nikkei 225 finished up 0.2% at 9,808 Monday, but volume was down at a 6-week low. Fast Retailing, Suzuki Motor, and Kubota were top gainers, but major power companies were among the hardest hit. Makiko Utsuda from The Nikkei has more.

    • Fiat's 5-Year Road Plan for Chrysler  05 Nov 2009

        Fiat said its 5-year road plan to turn around Chrysler will result in the doubling of revenue. "There is no alternative but for Chrysler to be ambitious at this point," Stefano Aversa, co-president of restructuring specialists Alix Partners, said Thursday. "They have plenty of cash."

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Current DateTime: 10:44:57 12 Nov 2009
LinksList Documentid: 30830722
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Behind The Wheel

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Jun.19
9:08 AM ET
Thursday, 19 Jun 2008
GM Facing What Could Be Biggest Challenge Ever

2008 Chevy Malibu
Source: chevorlet.com
2008 Chevy Malibu

What was shaping up to be a tough summer for GM has rapidly worsened and become a major gut-check for GM, its investors, and fans of the American automaker.

Which brings up the most frequently asked question I get from readers and viewers: can GM successfully shift gears from trucks to cars?

The good news: GM's [GM  Loading...      ()   ] designers, engineers, and execs have the will and ability to roll out winning cars. Look at the new Chevy Malibu, Cadillac CTS, Saturn Aura, or recent Pontiac offerings. They are every bit as good as the competition. On top of that, the cars in GM's pipeline including the Chevy Camaro should do well.

In addition, the rapid loss of market share has rattled the tree at GM. The leaders know there's no time to waste. The good news is GM is a much more nimble company and, when pressed, can move quickly to meet a challenge. This is not the mid 70's when GM was caught flat footed by the oil crisis and couldn't quickly adapt.

The bad news: shifting GM's production from trucks to cars will take time and be costly. Ask almost anyone in the auto industry and they'll tell you the domestic automakers simply do not have enough flexibility in their plants. In other words, GM can't just flip a switch and crank out fewer trucks in exchange for more cars. It will take many months to re-tool plants.

It will also be costly. The UAW will work with GM, but the union will also fight to keep jobs and get buyouts for those GM wants to release. Now, GM has plenty of liquidity at the moment, but there is a limit. GM has already sold and borrowed against many of it's major assets and the credit markets stink right now, meaning the company will find it more expensive if it needs to borrow more in the future to fund this restructuring.

My outlook: GM can get through this crisis, but it won't be pretty. Its market share could fall much further, running the risk of dropping behind Toyota [TM  Loading...      ()   ]to become #2 in the U.S.

That is what will make this summer so challenging for the company and its fans. GM is ending its first 100 years with a test that few could have imagined when the company was dominating the U.S. 40 or 50 years ago.

Questions?  Comments? 

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