Tuesday June 07, 2005

GM to cut 25000 jobs in U.S. by 2008

urbansurvival.com -> biz.yahoo.com :

General Motors Corp. plans to eliminate 25,000 jobs in the United States by 2008 and to close plants as part of a strategy to revive its struggling North American operations.

Speaking to shareholders at GM's 96th annual shareholder meeting in Delaware Tuesday morning, Chairman and Chief Executive Rick Wagoner said the capacity and job cuts will generate annual savings of roughly $2.5 billion.

He noted that health-care expenses add $1,500 to the cost of each vehicle. This puts GM at a "significant disadvantage versus foreign-based competitors," and said GM has conducted "intense discussions" with the unions about how to reduce health-care costs, he said.

- While the demise of fuel-guzzling SUV's looks imminent due to the twin impacts of high oil prices and high labour costs, we should also spare a thought for those who are going to lose their jobs. We can see now that the cutting of GM & Ford bonds to junk status was only the opening act. GM and Ford are major employers in the USA, and if you include the parts makers, that's a big chunk of America's manufacturing (especially with China having taken away almost everything else). You can be sure that we have not seen the worst of it yet ...

(2005-06-07 23:09:40 SGT) [Biz] Permalink

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