General Motors Corp. has decided to sell off $4 billion to $7 billion worth of assets and cut 20% worth of salaried cash costs in hopes of saving billions of dollars.
The Chief Executive Rick Wagoner said that these were “difficult decisions,” but necessary for the company to prevail in the weak economy that has resulted from the high oil prices, which he called GM’s “greatest concern.”
In a plan to win, instead of just survive, Wagner said the cost-cutting will generate $10 billion in “cash improvements” by the end of 2009.
This restructuring decision made by GM, the fourth-largest American company in terms of annual sales, is just a rude awakening to the difficult economic times we are now facing.
To read more about GM’s cost-cutting click here.
You work hard for your money, and the gas prices are certainly not treating you right. Here’s a list of the top ten cars that won’t pillage your pocket at the pump, as compiled by Car and Driver.com.
- 2008 Toyota Prius
- 2008 Honda Civic Hybrid
- 2008 Smart Fortwo
- 2008 Nissan Altima Hybrid
- 2008 Toyota Camry Hybrid
- 2009 Volkswagen Jetta TDI
- 2009 Ford Escape Hybrid
- 2008 Toyota Yaris
- 2008 Mini Cooper/Clubman
- 2008 Honda Fit
Read more to find out why…
GM is now worth less than Bed, Bath & Beyond. Heck, toymaker Mattel is worth more than GM now. What does that say? Here’s an interesting and thought-provoking piece by Forbes on why there is an argument to be made about Washington letting GM falter:
There’s an unpublicized view among foreign-car lobbyists that General Motors is much scarier dead or bankrupt than alive. When those lobbyists discuss what they fear most, increased stateside competition from our Big Three automakers pales in comparison to what the collapse of GM, Ford Motor or Chrysler might mean in terms of bad policy.
General Motors’ situation is particularly noteworthy, since its stock recently hit a 50-year low amid increased talk of bankruptcy. With a market cap of $5.7 billion, GM’s market value is now less than that of Bed, Bath and Beyond.
While GM’s vitality is increasingly irrelevant when it comes to the health and size of the U.S. economy, it is sadly a very relevant entity within the friendly confines of Washington, D.C. A collapsed GM would predictably lead to all manner of protectionist and currency-related punishment for those automakers who’ve apparently committed the grave offense of producing that which U.S. consumers want– while being foreign.
GM’s descent into pointlessness has occurred despite its status as one of the U.S.’–and the world’s–most heavily subsidized companies. Those who doubt this need only reference the highway bills of the multi-hundred-billion-dollar variety that Congress routinely passes that make cars in the world’s largest car market a necessity.
The highway subsidy isn’t so bad when we consider Americans are at least free to use the roads, which have created a market for all carmakers irrespective of origin and which exist thanks to Congress’ generosity with the money of others.
What’s more offensive is that Americans have been routinely victimized by the automobile lobby in the form of voluntary export restraints imposed on Japanese producers, not to mention the tariffs placed on the exports offered up by those same producers.
U.S. carmakers have eagerly sought tariffs and various restraints on trade over the years, and they’ve burned U.S. consumers twice: first, for raising the prices of the goods they want and, second, for decreasing the size of overseas markets they themselves might like to export to. When we restrict the ability of exporters to send us what we want, we also restrict their ability to purchase from us.
But what’s most problematic when it comes to U.S. automakers is their impact on U.S. currency policy. The Big Three have routinely agitated for a weaker dollar against the yen. In a 2005 op-ed in The Wall Street Journal, GM Chief Executive Rick Wagoner cast some of the blame for the company’s poor performance on “unfair trading practices,” in particular, “Japan’s long-term initiatives to artificially weaken the yen.”
Read more on Forbes.
Sky-high gas prices this summer could have many drivers in the United States looking for a change, and most are well aware that buying a vehicle that gets better miles per gallon (mpg) will save them more dollars at the pump.
But not everyone looking for a switch wants to sacrifice passenger and cargo space by switching from a gas-guzzling SUV to a hyper-efficient compact. Read more…
According to Brian Handwerk
Hybrids and small, fuel-efficient cars are in short supply, and the auto industry, in general, is having one of its worst years ever.But auto buyers, driven by rapidly rising gas prices, found some appealing fuel-efficient mid-sized and crossover vehicles in the $18,000 to $30,000 range. Sales of some models in this segment surged in June 2008, compared with June 2007, and the increase provided a ray of hope to automakers otherwise struggling to stay afloat.
The biggest winners were the Chevrolet Malibu sedan (25 mpg), sales up 73.4% in June 2008 compared with June 2007; Honda Accord sedan (24 mpg), sales up 54%; Chevrolet Equinox crossover (19 mpg), sales up 45.9; Subaru Forester crossover (22 mpg), sales up 41%; and Pontiac G6 sedan (25 mpg), sales up 34.2%. Read more…
According to Jacqueline Mitchell
Homeless people living in cars and motorhomes across the US are being joined by a new breed: the middle class.
As mortgage foreclosures continue to rise, growing numbers of middle-class professionals are losing their homes and downsizing from four bedrooms to four wheels.
With numbers rising, New Beginnings, a homeless agency in Santa Barbara, California, has launched a safe parking scheme, whose aim is to provide a refuge of sorts for those who have nowhere to go other than their vehicle. Read more…
According to Dan Glaister
The struggling automaker’s announcement comes shortly before California enacts a law that requires hands-free cellphone use while driving.
Have you ever thought rush hour on the 405 Freeway might be more bearable if you could check your e-mail, shop for a book on Amazon, place some bids on EBay and maybe even, if nobody is looking, download a little porn?
Then perhaps you should be driving a Chrysler. Read more…
According to Ken Bensinger
MILAN (Reuters) - Italian car maker Fiat has apologized to China over a television commercial featuring Hollywood actor Richard Gere and a reference to Tibet.
China is a huge market for car makers which, like other multinational companies, go out of their way to avoid upsetting the country’s sensibilities about certain issues out of fear of reprisals such as a boycott of their products.
Tibet has become a focal point for protests against China’s rule over the mountainous province ahead of the Olympic Games in Beijing in August. Read more…
According to Gilles Castonguay
General Motors is back at the scene of the crime.
When the Detroit automaker pulled the plug on its unprofitable electric-vehicle program in 2000, it became known, in the words of a popular documentary, as the company that killed the electric car. Its love affair with the Hummer didn’t help either.
Now the company is betting big bucks — most of its current research-and-development budget — that the internal-combustion engine’s time is running out. By spearheading a new generation of electric automobiles, the beleaguered giant also is hoping it can reclaim from Toyota the title of world’s top carmaker. Read more…
According to Ángel González
Tags: GM, green cars|
Posted By: ashley | Jun 20th