Wednesday, July 09, 2008
General Motors considering job cuts?
Carmaker could lay off staff as home market sales falter
General Motors is considering thousands of job cuts in North America as business in its home market falters.
The carmaker’s financial stability has been thrown into question after Merrill Lynch warned that bankruptcy was “not impossible” if GM failed to secure a $15bn (£7.6bn) cash injection.
GM said it would have to reconsider its position if sales worsened, but that it currently had enough capital to take it through this year.
The manufacturer’s American sales dropped 18 per cent in June.
Despite struggles at home, however, GM’s other divisions worldwide have been doing relatively well.
GM is not the only American giant to be considering such a move - Ford recently said it was cutting 2,000 managerial positions.
DATED: 09.07.08
FEED: MT
General Motors is considering thousands of job cuts in North America as business in its home market falters.
The carmaker’s financial stability has been thrown into question after Merrill Lynch warned that bankruptcy was “not impossible” if GM failed to secure a $15bn (£7.6bn) cash injection.
GM said it would have to reconsider its position if sales worsened, but that it currently had enough capital to take it through this year.
The manufacturer’s American sales dropped 18 per cent in June.
Despite struggles at home, however, GM’s other divisions worldwide have been doing relatively well.
GM is not the only American giant to be considering such a move - Ford recently said it was cutting 2,000 managerial positions.
DATED: 09.07.08
FEED: MT
