Ouch. GM plan calls for $30 billion, 47,000 job cuts

[Fleshdancer]

:(

http://www.google.com/hostednews/ap/article/ALeqM5iQk2silaqPitmFLWSNamSjivXaKQD96DKC5G0

DETROIT (AP) — General Motors Corp.'s restructuring proposal says the company may need up to $30 billion in government loans as it implements a survival plan that includes cutting 47,000 jobs and closing five more U.S. factories.

GM submitted the dire plan to the Treasury Department on Tuesday to explain how the Detroit automaker will become viable and repay its loans. It says GM will try to borrow up to $16.6 billion more from the government, on top of the $13.4 billion it has already received.

With the restructuring, GM expects to start repaying the government in 2012 and fully pay off the loans by 2017.

[taught_me_patience]

1. Time to let them go

they've become the black hole I thought they'd be. Nobody really thought the $14B last year was really going to be the last of it did they?

[tammywammy]

2. I'd like to hear more of their plan n/t

[cottonseed]

3. GM: We need $30 billion to layoff 47,000K. Help us.

It just doesn't sound right. These are rough times and I don't see this ending well. If GM is having these types of problems, EVERY big US industry is having the same problems. This is why we'll probably be doing another big stimulus come summer time.

I'd give them $30 billion if they agreed to spin off into about 5 different, smaller, car companies.

[Fleshdancer]

7. That's an interesting idea

I agree that the "give us money and we'll lay people off" thing sounds off. I wonder if these layoffs are only in the States or global.

Spinning off into smaller car companies sounds interesting. The focus could be transportation in general...perhaps one of the spin offs can concentrate on light rail. :shrug:

[cottonseed]

12. I think we should unwind, deleverage, and spin off a LOT of our big businesses.

This is the kind of stuff that should spur innovation (in theory). Regardless the benefits GM thinks they enjoy by combining businesses, all I see is that they end up starving previously decent brands (see: Saturn).

Also, if you look at the story of Mervyn's, "How Private Equity Strangled Mervyns":

http://www.businessweek.com/magazine/content/08_49/b4111040876189.htm?campaign_id=rss_daily

You'll start to notice that a lot of these companies aren't dying due to the business cycle but because they were starved to death by private equity firms in leveraged buyouts (note: leveraged).

Now for Big banks; they need to get the hell out of some of these consumer businesses and concentrate on what big banks should, putting together financing for BIG business deals (re: private infrastructure, real estate, etc..) and not in consumer credit, and the other garbage they got involved with.

Teddy Roosevelt, a Republican is celebrated in history for two things, his commitment to nature reserves, and TRUST BUSTING. I want to see us break the strangle hold of "too big to fail" business and get us back to a managed free market capitalism with a tax rate high enough on the highest earnings to inject back into the bottom of the economy -- that keeps the system going for a while longer.

[SoCalDem]

4. Gotta kill the union, stiff old-timers , and lay most people off

maybe THEN, GM will be "profitable":puke:

When they have a bunch of $12 hr no-bennie worker-bees to watch the robot-machines, they will be happy:(

[BlooInBloo]

6. Yup.

Remains to be seen how many DUers, and Americans more generally, will side with management against the "union queens".

[4 t 4]

8. For Chrits Sake-Just give the money to the people

and we'll buy cars again-that simple!!

[tammywammy]

5. Here's more

It's from Automotive News a subscription only site

http://www.autonews.com/apps/pbcs.dll/article?AID=/20090217/ANA02/902179951/1197

GM's plan outlines how the company proposes to achieve a "sustainable return to profitability" within the next 24 months, sources familiar with the plan say.

Of the 47,000 jobs to be cut this year, 37,000 will be hourly.

GM plans to continue to supply current product to Saturn through 2012. But absent an alternative to fix the brand, GM expects to phase it out.

Hummer, which GM has had for sale since June, has attracted several interested parties. GM expects to make a decision on what to do with Hummer by the end of the first quarter, the sources say.

GM is in talks with the Swedish government and several other parties about Saab's future. Without funding help from the Swedish government, Saab would have to file for reorganization, the sources say.

Among other things, GM was told to get bondholders to accept stock in exchange for debt, and the companies were advised to trim worker compensation to the level of the U.S. plants of import brands, or explain how comparable savings would be achieved.

SNIP


Sounds decent, but I'd like to read more. Cut plants to stop over production. Get rid of Saturn and Hummer and figure out what to do with Saab.

[flvegan]

9. Close US factories? *buzzz* Try again, GM.

Come on, you idiots were all business majors. I could do better, so can you.

[onethatcares]

10. why isn't anyone asking the banks and bankers

how they're going to get back to profitability and repay the loans we taxpayers have given them? Why isn't anyone asking them to drop their healthcare coverage and sell their homes to become viable?

Gaudammit, what the fuck is wrong with this entire picture? The workers get locked out and our country dies a slow death of neglect and serfdom.

The party is over folks, way over.

[Horse with no Name]

11. The point of infusing OUR money was to try to save jobs

Doesn't seem they are interested in that. Cut them loose.
I'm not interested in ANY more of my money going overseas.
Funny how they make NO mention of that.