More Videos
- Clint Eastwood ‘Surprised’ by Reaction to Chrysler's ‘Halftime in America’ Ad
- Tesla Unveils First SUV: Model X
- Can Ford Make a Smooth Transition in Management?
- US Auto Industry Made Stronger by Increase in Exports
- Will Super Bowl Ad Buzz Generate Sales Buzz?
- Boeing Inspects 787 Dreamliner for Possible Repairs
- Will Toyota Rebound to #1 in 2012?
- What Fueled Record January Auto Sales?
- The Three Year ‘Pinch’ Is Helping New Car Sales
- Ford Earnings Disappoint, Causing New Concerns and Questions for Investors
MOST SHARED
- The Best Tax Plan: Romney, Gingrich, or Santorum?
- More MF Global Money Missing Than Originally Thought
- Greek Debt Saga Back on Center Stage for Markets
- Mick Fleetwood on the MP3 ‘Dumbing Down’ of Music
- To Play Senate Cybersecurity Bill, Cramer Likes Fortinet Stock
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- In Search of America's ‘Hottest Forecasters’
- Dow vs. S&P 500: Which is a Better Investment?
- Mick Fleetwood on the MP3 ‘Dumbing Down’ of Music
- Avis on the Road to Strong Growth: Analyst
- Private Homebuilders: Dead Men Walking
- LinkedIn’s Growth Is Already Priced In: Analyst
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- This Valentine’s Day Love Is Served on a Silver Platter
- Greek Cabinet Approves EU, IMF Bailout Bill
- We're Not Greece: Italian Prime Minister Monti
- Private Homebuilders in the US: Dead Men Walking
- Dividend Payout Could Hit Record Amount This Year
- With Investors So Bullish, Stock Pullback Must Be Ahead
- Obama Likely to Call for Cutting Top Corporate Tax Rate
- New York Fashion Week Fall 2012
- NetNet: Why Saving Greece Could Destroy the World
- My Funny Valentine: When Love and the Fed Collide
RSS FEED
Behind The Wheel
Text Size 
GM To Cut More Plants, Closing In On HUMMER Deal
GM is about to get smaller, faster. 
Today on the company conference call updating its restructuring, I asked GM CEO Fritz Henderson is the company will go beyond the number of plants it laid out for closure when updating the Federal Government on February 17th. Henderson says GM will likely close more plants, though he would not say when that announcement will take place. The CEO says the goal is to increase the capacity utilization of the plants.
To put GM's new cuts in perspective, consider how the company's plans have changed.
* December Plan: Reduce GM's powertrain, stamping and assembly plants from a 2008 level of 47, down to 38 by 2012.
* February Plan: GM said it will drop another 5 plants by 2012 bringing the total down to 33.
* April/May Plan: GM now says it will close even more plants and do it even sooner.
What does all of this say about the GM we will see once it is through restructuring either in or out of bankruptcy?
Look for the auto maker to be far leaner, with fewer employees, and likely with a reduced product line-up. Chevy, Cadillac, and Buick are definitely going to stick around. Buick stays largely because of it's strength in China and Asia, which are critical to GMs growth in the future. Henderson says speculation that GM will drop the GMC brand is just that, speculation. He added that GM has not changed its plan to grow around four core brands, with Pontiac as a niche brand.
As for HUMMER, three suitors are expected to file final bids next week and a decision will come shortly after that. My sources familiar with the talks say HUMMER will sell for $100-$150 Million dollars. A fraction of what GM could have collected if it sold the brand at the height of HUMMER-mania a few years ago.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GM
Loading...
()
]
- Toyota Motor [TM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes
