Joey

Friday Options Update: MS, XLF, WFC, GS, ZION, XRAY, FDRY, HA, GM

How to Fix GM – Advice from someone who worked there.
1) Cut down from five regional offices to two. One in Atlanta (east
of Lake)and one in LA (west of Lake). 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.
2) 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.
3) 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.
4) Next, cut around 150 jobs at the Detroit GM Headquarters. A
savings of around $18 million with benefits.
5) 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
6) Next, cut advertising in November, 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.
Total Savings for GM = $123.75 million in salaries for # 1-4, $1.4
million in savings for #6, and for #5, I do not know the exact number
but it should be a savings of around $25 billion.