GM puts Hummer and AC Delco up for sale

[HeilSvenska]

As far as I'm concerned, important changes came and went a couple of days ago. There's already (admittedly bats***) rumors of GM announcing cancellation of the Volt program, etc...

DETROIT -- General Motors Corp. is expected to announce "important changes" to its automotive operations Friday when the automaker releases third-quarter financial results, according to an internal e-mail obtained by The Detroit News. According to the e-mail sent to company executives Monday, CEO Rick Wagoner and President and Chief Operating Officer Fritz Henderson will announce changes to employees at 11 a.m. Friday that address challenges "brought on by the volatile global economic situation." "Clearly given the challenges the industry is facing, we're probably going to have to make additional adjustments," GM spokesman Tom Wilkinson said today. "It's a very challenging time right now." It is not spelled out in the e-mail what specific changes might be announced. But late last month, Wagoner and Henderson wrote in another letter to executives that the automaker will have to cut more white-collar jobs later this year and early next year, including involuntary layoffs, suspend the company match in employee 401(k) retirement accounts and make other benefit cuts. GM's sales in the United States are down 20.3 percent this year and the automaker has lost approximately $70 billion since 2004. GM and other automakers are coping with the lowest U.S. sales market in 17 years. On Monday, GM reported its October sales slumped 45.1 percent to 168,719 vehicles, the steepest slide among Detroit's Big Three automakers. The worsening auto market has led GM to enter negotiations to acquire rival Chrysler LLC from majority owner Cerberus Capital Management LP. One deal on the table is for GM to sell a majority of its 49 percent interest in GMAC Financial Services in exchange for Chrysler. Cerberus, which owns 51 percent of GMAC, could keep a small stake in a combined GM-Chrysler. http://www.detnews.com/apps/pbcs.dll...63/1148/AUTO01

[RC45]

Wallace is gone, and Heinrichy excercised his early retirement option Monday - so the Corvette brigade is pretty much done.

Mayve the announcment is to cut a number of vehicle lines.

[nthfinity]

GM just announced $4.2 Billion in losses this quarter, and also, they burned throgh $6.9 Billion in operational costs. Nothing more has been announced at this time. This is a dangerous time at GM right now.

[HeilSvenska]

Well. If you've ever wanted GM stocks, time is now. They're dirt cheap.

[philip]

Stock is down 10% today. GM is apparently running out of cash and the credit markets aren't probably going to loan them anything. Ford is apparently ok till late next year. "O b ama wan your our only hope". But they may not last that long as October is in no ones earning/loss statement. Bush may have to decide to save them.

[10000rpmlover]

hmmm.... pardon me if this sounds a bit wacky, but why can't the government save GM by nationalizing the company, meaning buying all its stock, letting the department of transportation to be part of the board of directors?

why do I say that?

think about it, GM is one of the largest job makers and employes thousands of people, if the government can infuse cash (you know they have it or just make it out of thin air) they could turn GM around for the better, cutting the pork, (hummer) besides, the US governement has contracts with GM for the H1 up until 2020, and I am sure once the tally is up, the army and marines will need a few thousand more H1s because most of them will be left behind in afghanistan and Iraq

[RC45]

Lets not send GM down the British Leyland path