GM yesterday submitted a plan to use Federal bridge loans to create a leaner, more competitive company.
The plan calls for:
· Increased production of fuel-efficient vehicles and energy-saving technologies;
· Rationalization of brands, models and retail outlets;
· Reduced wage and benefit costs, including further reductions in executive compensation;
· Significant capital structure restructuring;
· Further consolidation in manufacturing operations.
General Motors today offers 20 models with 30 miles per gallon or more on the highway—more than any other manufacturer. General Motors is also the world leader in flex fuel technologies, with over 3 million flex fuel-equipped vehicles on U.S. roads today. Flex fuels represent the fastest way for the United States to reduce its dependence on imported oil.
While remaining a full-line manufacturer, GM will substantially change its product mix over the next four years, and launch predominately high-mileage, energy-efficient cars and crossovers.
In the Plan, further shifts to smaller displacement gas engines will occur—8-cylinder engines are replaced by 6-cylinder engines, 6-cylinder engines are replaced by 4-cylinder engines. More extensive use of turbo-charging is enabling the shift to smaller displacement engines, providing better fuel economy with normal operations but offering power in reserve for emergency situations. 4-cylinder engine usage, for example, will increase by 42% by 2012, and fuel-saving 6-speed automatic transmission volume will increase by 400%, to over 90% of GM‘s U.S. automatic transmission sales volume.
Ernest Ionescu
http://investing-manage-properties.com
http://winner4us.com
