I’m afraid that these layoffs are just the beginning and not just in terms of restructuring and cost cutting to invest in new technologies. The fact is that GM doesn't have what the market demand right now. Proof of that is the shutting down of production of several models.The thong they want to invest in are a long time away from being profitable, so my take is that GM is going to find itself in a period of a big profit freeze, which will undoubtedly result in even more cuts.
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Dear colleagues and friends , Why is MB still CEO ? If I was at the top and her employer I would be demanding her resignation immediately.
Mary really screwed the pooch on this one. Best operating environment in literally decades, a tax cut, a bail out, and she still couldn’t find a way to sell cars and make enough profit. Honda, Toyota, BMW, Mercedes, Subaru, Audi, Volvo, all seem to be able to sell cars well in the US. It’s a shame GM still can’t get the formula right.
And this cut... wow. It couldn’t have been handled more poorly. Huge hiring spree for the last few years the they turn around and cut a lot of good talent. I saw a lot of top performers on key programs have their positions “eliminated.” Elimated. Right. They took the 60hr /week work load and dropped it in the lap of another person who already had a comparable work load. How’s that going to work out? I can tell you this, MY20 and 21 gates are being missed. Work is being rushed to make dates. A lot of data and knowledge went out the door with these people and the work has to be redone or judged off. I wouldn’t touch a MY20 or 21 GM product for love nor money.
If gas prices go up in the meantime, sales will plummet and the profit squeeze will come faster and be worse than the expect.
Remember 2008.
People were giving away their Suburbans because they couldn't afford to fill the gas tank.