Friday, July 18, 2008
GM set to restructure finances
General Motors has disclosed it may sell as much as $4bn(£1.9bn) of its assets and borrow around $2bn to aid its suffering finances.
The US giant has also said it will cut white collar employment costs by 20 per cent.
“We are responding aggressively to the challenges of today's US auto market,” said GM chairman and CEO, Rick Wagoner.“We will continue to take the steps necessary to align our business structure with the lower vehicle sales volumes and shifts in sales mix.”Wagoner said the company was pinning its hopes on areas of potential growth such as more fuel-efficient vehicles.“We remain committed to bringing to market great products that target changing consumer preferences for more fuel-efficient vehicles,” he said.The CEO noted that 11 of GM's 13 most recent major product launches in the USA, as well as 18 of its next 19 launches, are cars and crossovers, which are key growth areas and he remains confident.“The actions announced are difficult decisions, but necessary to respond to the current auto market conditions,” said Wagoner.“Even under conservative planning scenarios, GM is well-positioned to withstand the US market downturn and emerge a stronger company.”
DATED: 18.07.08
FEED: MT
The US giant has also said it will cut white collar employment costs by 20 per cent.
“We are responding aggressively to the challenges of today's US auto market,” said GM chairman and CEO, Rick Wagoner.“We will continue to take the steps necessary to align our business structure with the lower vehicle sales volumes and shifts in sales mix.”Wagoner said the company was pinning its hopes on areas of potential growth such as more fuel-efficient vehicles.“We remain committed to bringing to market great products that target changing consumer preferences for more fuel-efficient vehicles,” he said.The CEO noted that 11 of GM's 13 most recent major product launches in the USA, as well as 18 of its next 19 launches, are cars and crossovers, which are key growth areas and he remains confident.“The actions announced are difficult decisions, but necessary to respond to the current auto market conditions,” said Wagoner.“Even under conservative planning scenarios, GM is well-positioned to withstand the US market downturn and emerge a stronger company.”
DATED: 18.07.08
FEED: MT
