Repper

Six Myths about the Big Three

For all you who love to ignorantly spout your cynical distain for your own country's companies, the following applies specifically to GM, but both Ford and Chrysler are similar in the changes they’ve made too.

Think GM has done nothing to improve their business and cost structure? Facts:
• Reduced structural cost by $9 billion from 2005-2007 (down 22%) with plans for further reductions of $5 to $6 billion by 2011 (down ~35%)
• Rightsized manufacturing capacity: From year-end 2004 to year-end 2007, GM removed 1.3 million units of assembly capacity (24% net reduction)
– Further rightsizing planned with reduction of 0.7 million units by year-end 2010 (total net reduction of 36%)
– More than 60% of remaining capacity at year-end 2010 will be dedicated to fuel efficient cars and crossovers
• Streamlined U.S. operations: Total headcount reduced from 177,000 in 2002 to 93,000 today (47% reduction)
• 2007 UAW Hourly Labor Agreement provides basis for competitive manufacturingbase in U.S. by 2010
• Historic agreement with UAW to fund retiree health care obligations with independent VEBA trust, eliminating majority of risk related to U.S. retiree healthcare starting in 2010
• GM leads in manufacturing productivity in 11 out of the 20 North America segments in which it competes (2008 Harbour Report)
– GM also has 5 of the top 10 best rated engine plants in North America, and the #1 transmission plant, all located in the U.S.

Think GM Builds nothing but crappy, gas-gusslers?Facts:
– North America Car of the Year: Chevrolet Malibu and Saturn Aura
– Motor Trend Car of the Year: Cadillac CTS
– European Car of the Year: Opel Insignia
– Green Car of the Year (LA Auto Show): 2-Mode Hybrid Chevrolet Tahoe
– 11 of last 13 U.S. launches have been cars or crossovers
– J. D. Power Initial Quality Survey: In 2008, GM had more segment leaders than Toyota
or Honda, and GM has improved overall survey performance by 25% in last 5 years
– Reduced number of warranty repairs by 40% over the last 5 years, and are on track in 2008 to achieve a further 15% reduction vs. 2007 levels
– 20 GM vehicles with EPA highway fuel economy of 30 mpg or better (most of any manufacturer, domestic or import)
– World leader in bio-fuel vehicles with over 3 million FlexFuel vehicles on U.S. roads today, with commitment to reach 50% of annual GM volume by 2012
– 6 hybrids in U.S. today, and 2 more by year-end 2008 (most hybrid models of any automaker)
– Largest hydrogen fuel cell vehicle test fleet in the world
– Chevrolet Volt (E-REV) production on schedule to begin in 2010

Think GM doesn’t affect the total economy that much? Facts:
- Directly employs nearly 240,000 people
- Provides healthcare to 2 million Americans and pension benefits to
775,000 retirees and spouses
- Supports another 5 million jobs at dealers, parts suppliers and
service providers
- Comprises nearly 4% of U.S. GDP
- More than $225 billion invested in U.S. over last 2 decades,
including $10 billion in 2007 alone
- $12 billion spent annually in U.S. on R&D, exceeding aerospace,
medical equipment and communications
- Purchased $156 billion in U.S. auto parts in 2007, supporting jobs in
all 50 states
- Largest purchaser of U.S. steel, aluminum, iron, copper, plastics, rubber and electronic chips