GM and Ford Announce Plans to Avoid End of Days
General Motors and Ford have both announced plans to help themselves scrap through this financial nightmare that all of the Big Three are in. Hey, if Congress isn’t going to help out they’ll have to do it themselves. First off, try driving instead of flying.
We’ll start with General Motors, who has no plans to actually cut their brands Saturn or Pontiac, which had been a rumor these past few weeks. Instead, the GM will focus on building up their four core namesakes – Chevy, Cadillac, Buick and GMC. We get Chevrolet and Caddy, but why Buick over Pontiac? Buick is a huge sell for GM overseas, in China specifically. GMC too is a big sell, in the north American southwest. Pontiac has been shrunk down to a few models, where other GM owned brands Hummer and Saab are looking for outside buyers. General Motors is still hoping to receive about $12 Billion from the US Government to see them through 2009. They will then begin to pay back and such loans in 2012. Who reading thinks no one outside of Detroit will ever see that money again? The worst part about this reconstruction plan is talks about cutting production along with assembly line jobs. The UAW will be stepping in to rework certain benefit plans.
And now to Ford – who is calling upon their transit vehicles (think NYC cabs) and green technology to pull them out of the red. Asking $14 Billion up front from green technology companies (along with $9 Billion, hopefully, from Congress) Ford will have a full fleet of electric and hybrid cars, trucks and SUV’s. Ford hopes to be “profitable” again by 2011. Both CEO’s of GM and Ford have agreed to work for $1 next year, which would normally be fine living off stock options, but maybe not this time. Well…good luck to everyone!
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