dealers in the process” Saturn when created in 1990 has not been profitable since. Saab on the other hand may survive, that is only because the Swedish government is negotiating with GM to inject $3 billion into the auto maker. Although the Swedish government is helping GM, GM still says that it will spin off Saab to Swedish government or else it will be shut down. While Hummer has very little time to come up with buyers or else it will be shut down as well. The reason why HUMMER is not standing is due to the high gas price from last year. This has dropped the sale of Hummer’s H3 down 51 percent. GM is standing strong behind its core brand Chevrolet, Cadillac, Buick and GMC; while Pontiac will run under GMC -Buick brand. GM has closed down 12 manufacturing facilities in the U.S from 2000 to 2008. And the way things are going for the auto market, especially for GM, which will close an additional 14 facilities by 2012. GM is looking into its European market as well. GM has 16
engaged its European labor partners to achieve $1.2 billion in cost reduction. This will come from closures or spin-offs of manufacturing facilities in high cost location. While most the projects that were to be completed in Asia are no longer an option for GM since it’s no longer financially feasible, GM will halt these projects until the governments of the respective countries or the other partners support GM financially. GM can face another hardship at coming its way unless the bankrupt parts supplier recoups parts and equipment it needs to build the new Camaro by Chevolet. GM has sued the Cadence Innovation LLC, of Troy Michigan. GM filed the law suit against the part supplier for parts and toolings, saying that it will lose millions of dollars and it can have ripple effect on manufacturing suppliers and dealers. As far as the damage is concerned the GM says that it will “substantial, but difficult, if not impossible to calculate”. Cadence, which makes consoles, door panels and other parts, Cadence filed Chapter 11 Bankruptcy in August, and went into liquidation. GM has requested that the parts and tooling be returned immediately, so GM can start the business with other part supplier. Automakers provide the part supplier with special machineries to build the parts and sing an agreement that the ownership of these machineries belong to the automakers. On the turn of event, the bankrupt supplier sued GM for $4.6 million due for parts, labor and equipments that GM ordered from Cadence but never paid for. Cadence which employed 1500 people said that if GM failure to pay, it would damage Cadence’s plan to wind down and liquidate its assets. GM is required to pay Cadence on an expedited for parts and services provided since Cadence bankruptcy. GM is struggling to take its share from the other auto maker in the auto market. In GM’s monthly report of sale and production releases, it reads GM reported 129,227 17
deliveries in January; this is down 49 percent compared with year ago. According GM, the retail shares were off as well about 38%. The total car sale for the month of January is 43.943 this is off 58%, the sale of total trucks plus crossover is 85.284. The sale of trucks
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