GM News Announcement: survival in economic crisis

The current economic crisis is bad the world over and while its hitting some companies hard, GM shows just how bad with numbers.

Today we are hearing from a GM CEO news announcement that the automaker is making some massive cut backs just in order to survival the economic crisis, Rick Wagoner has shown in this press release just how bad things are.

General Motors are taking drastic measures that include cutting 20% of salaried workforce, selling off $4 to $7 billion in assets and halting its quarterly dividend payout.

This may seem harsh but it’s also a decision that will enable GM to take some control in the current economic crisis and maintain operating liquidity.

The current oil prices have continued to increase and it’s anyone’s guess where they will go from now, this fact has hit GM hard on its truck and SUV lines.

Rising gas prices have not just affected GM, we expect others in the American auto industry to make similar announcements in the coming weeks that will show how bad the auto industry has been hit by the price of oil.

GM is now hoping to replace its experienced and expensive workers with cheaper labor by offering them all buyouts. Do you think GM has made the right choices?

Source: Read