Joey

Auto Manufacturing: What Does 'Buy American' Even Mean?

User 158164, what would your plan be to cut $2 billion dollars a month (or 24 billion dollars a year) out of GM's budget then? Be specific. Also, what do you think of a CEO who has dropped his share from $64 a share when he started to less than $3 today? Would you keep him and why or why not?

Auto Manufacturing: What Does 'Buy American' Even Mean?

eddie6442, good point. I think Ross Perot would make an excellent Chairman and CEO of GM. He is not a "yes man". Something that GM has not seen since Ross was there. GM will be an example of a great case study of poor management - what not to do when running a company (in regards to blind obiedence and thinktank).

Auto Manufacturing: What Does 'Buy American' Even Mean?

GM is bleeding over $2 billion dollars a month. No matter how poorly run GM is, they still keep the BOD still keep the CEO and his henchmen. If I were CEO, I would get rid of many of the white collar workforce. I would clear out almost the entire body of unclassified workers (workers who make around $300,000 a year - and believe me, there are thousands of them). I would then cut the level 8 employees by 50% - moving the other 50% to the unclassified workers spots (these workers make around $150,000 a year). I would get rid of around 25% of the level 7 employees promoting them to the level 8 employees jobs. I would get rid of 50% of the people who work out of the Renissance building and would close 3 of the 5 regional offices. The remaining 2 regional offices can do the work of the 5. It is the same jobs out of the regional office - only instead of sending 1,000 emails to dealers they are sending 3,000 emails to dealers. Bleeding 2 billion dollars a month takes dramatic action. Also, in regards to insurance - I would take all of the planned surgeries (which is around 75% of the surgeries) and fly the people needing surgery to India for a week to get their hip replacements and cancer surgeries such as bone marrow transplants there.

Pre-packaged Bankruptcy Is GM's Only Option - Barron's

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
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
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).

September Auto Sales: Why Was Ford Hit So Hard?

GM was all over the internet and TV with their commercials and sales were still down. It looks like GM should just cut their advertising spending down to nothing and start building their shares back up. All agencies/contractors should be cut.

The US Auto Crisis

BioInvester, women were fired. Check your records. It was several contractors in the advertising field across the country that were fired or demoted. The RDMMs made the recommendations. Also, if women do not make a difference, then why did you have the engineers at GM be forced to dress up in women's dresses to experience the Acadia from a woman's point of view?

The US Auto Crisis

Good post Retriever5280. I do not think GM knows how to take care of women. That's why women try to find whatever man they can to come with them into the dealership. It is like walking through a construction site with the men whistling. It is an awkward feeling that you do not feel safe. That the men at the dealership are about to take advantage of you. Studies show that both men and women prefer to buy their cars from women. Yet GM has only 3% of their dealerships owned by men. Another fact, those dealerships that are owned by women far outpace, on average, the average male dealership in terms of sales.

The US Auto Crisis

Well written analysis by the author. Women do represent 65% of new car buying decisions yet GM's management is over 90% men. GM should have started to change its employee makeup to accomodate for targeting their new buyer to the industry - women (this should have occurred 20+ years ago). I remember in 2006, GM took its advertising contractors and fired and demoted almost every women in the advertising field and replaced them with men. GM's men wanted to work with male advertising executives. The result, GM's sales for the brands affected by the switch dropped by more than 40%. So why are these men who made this terrible business decision still there? Is this fair to GM stockholders, especially since so many women who own GM stock? If getting rid of women decreases sales, what would getting rid of the men and adding women to GM do for sales? Would GM finally see a positively changing sales track? Would GM's stock that dropped so much so quickly finally turn around because their target market is being taken care of and their needs met?