GM Submits Plan for Long-Term Viability to the U.S. Congress

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

Support for the Auto Industry is in America’s Best Interest

Support enables the industry to bridge what is arguably one of the country's most difficult economic periods and to weather a financial storm not of its own making.

Almost 4% of U.S. gross domestic product is auto‐related and represents 10% of U.S. industrial production by value. One out of every 10 U.S. jobs is auto‐related, and auto workers receive $335 billion annually in compensation. Specifically, GM, Ford and Chrysler account for roughly 70 percent of U.S. auto production and are estimated to support around five million jobs across all 50 states.

Failure of one automaker would trigger a domino effect on the supply chain and the finance subsidiaries and on other domestic automakers.

I have been working for GM since 1991. We at GM have been through many structural and optimization cuts.

What is your opinion about the loan for auto industry at this time?

Thanks

Ernest

http://investing-manage-properties.com

http://winner4us.com