sumosama

Friday Options Update: C, GM, F, GE, CHK, AEM

Well thought out! Huzzah!


On Nov 28 04:42 PM Joey wrote:

> How to Fix GM – Plan One
> 1) Sell All of GMAC and the Insurance Business (Ditech)
> 2) Cut down from five regional offices to two. One in Atlanta (east
> of the Mississippi River)and one in LA (west of Mississippi River).
> That means Chicago, New York, and Dallas are closed. With about 250
> people working in each location (750 total) at an average of $100,000
> each, that is a yearly savings of $75 million. Operation cost (rent,
> equipment, etc.) at the three locations will save another $1.8 million.
> Benefits for the 750 employees will save another (at $20,000 each)
> another $15 million.
> 3) Next, there is an average of three offices per state (local offices
> in cities across the country), if we close them, that is another
> $3 million in office space.
> 4) Next, the District Managers work out of their house and the Zone
> Managers (or whatever term is given to them), could be let go. They
> make around $150,000 a year and there are about 75 of them. Again,
> a savings of $11.25 million. With benefits, a total of $12.75 million
> in savings.
> 5) Next, cut around 150 jobs at the Detroit GM Headquarters. A savings
> of around $18 million with benefits.
> 6) Next, cut Buick down to two cars (Enclave and Lucerne), cut Pontiac
> to one (G6), cut GMC to two (Yukon and Sierra), cut Saturn to one
> (Vue) – and put all cars to a new umbrella called “United GM”. This
> will save GM billions. Also cut back on two Chevy models and two
> Cadillac models.
> 7) Next, cut advertising in December, January, February, March, April,
> and May (with the exception of auto show advertising for a three
> week period during the show and its incentives). This will save GM
> around $1.4 billion.
> 8) Sell all five planes. This will save GM $100 million in sales
> and another $100 million in yearly travel expenses for a total savings
> of $200 million dollars.
> Plan Two on Fixing GM
> How to save GM
> 1) GM needs to cut their total car models to 25 (from 60). What they
> could do is get rid of all Buicks expect Lucerne and Enclave; get
> rid of all Pontiacs except G6; get rid of all GMCs except Sierra
> and Yukon; get rid of all Saturns except the Vue; get rid of Saab
> all together; get rid of at least three Chevy models; get rid of
> at least two Cadillac models.
> 2) Get rid of half the dealerships. Chevy seems to have the best
> distribution so change the Chevy dealerships to Chevy, BPG, Saturn,
> and Cadillac
> 3) Close at least three of the five regional offices
> 4) Close all Zone offices and have employees work out of their homes
>
> 5) Get rid of 50% or more of white collar workers in the field <br/>6)
> The factories will close based upon which models will be discontinued
>
> 7) Have upper management take a 35% pay cut
> 8) Have middle management take a 20% pay cut
> 9) Cut advertising from $2.3 billion per year to $750 million <br/>10)
> Get rid of advertising groups and have national advertising only
>
> 11) Get rid of co-op advertising dollars
> 12) Get rid of all promotional advertising
> 13) Cut all regional and national meetings that cost more than $100,000
>
> 14) No parties for auto shows
> 15) Have special cash incentives for cash only purchases
> 16) Once the Volt battery is discovered, convert at least half the
> cars and trucks left after the cut to Hybrid
> 17) Move 1/2 the engineers to be used to discover more fuel efficient
> standards and more alternative fuel / hybrid cars
> 18) Sell all five planes and travel coach (a $100 million savings
> from cost of planes and a $100 million savings in yearly air cost
> for a total savings of $200 million).
>