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Introduction
I like that GM points out how many new vehicles will be very fuel efficient over the next few years. GM also identifies how big it is as a company, showing its importance.
Background
This section does well to continue pointing out GM's commitment to America and how important GM is to American history.
The Problem
This was a very good section. I think GM has done well to point out the $2T given to financial institutions. This type of positioning helps justify the idea that GM is as worthy of the funds as the failed institutions that haven't proposed changes of any kind.
Consequences of Failure
This section identifies the problem with letting GM die. Unemployment would skyrocket, especially in the heartland.
Temporary Federal Loan
The chart at the beginning of this section seems to identify that GM will have more than enough money to operate in March 2009. The second chart appears to be a worst case scenario that still allows GM to stay out of the red in March again. I think that both charts are still very optimistic. Hopefully, Congress doesn't ask about the methodology behind getting the numbers that arbitrarily suggest market improvement over the next 3 months.
I like that GM points out that contact has already been made with investors and stockholders to show that GM is taking the initiative.
GM specifically asks for $4B immediately. That terrifies me.
GM points out that the corporate aircraft will be gone.
The section on GMAC seems vague to me when it comes to explaining the restructuring plan. There's a lot of procedures that have to happen, but specifics are few and far between.
Principal Restructuring Plan Elements
GM proposes a reduction of brands and vehicles, international competitiveness, reduced wages, and an accountability balance sheet. GM is already competitive, but the vocabulary is pretty much what Congress wants to hear. If GM claims to be already competitive, then Congress will not see GM as agreeable or a feasible investment.
Hummer is up for strategic review. That doesn't necessarily mean sale, apparently. That was a poor thing to point out because it makes it clear that GM is slow to put up the least fuel efficient brand up for sale. GM also plans to seek alternatives for the Saturn plan.
I like that the first chart in this section identifies that the JD Power Sales rating is 100% in all years. That makes GM look very good.
The manufacturing cost reduction section is very vague. It claims to improve the hours per vehicle and safety incidents without numerical goals. It is good that GM wants to be more streamlined and efficient. It is, however, bad that GM does not have benchmarks for this. While I believe that GM deserves this bridge loan, it is abundantly clear that Congress does not, and GM has to make measurable changes that Congress can oversee.
The manufacturing cost portion is good at showing that GM has reduced costs significantly.
The fuel efficiency section identifies that 7 new models for 2009 will be extremely fuel efficient. This is instant gratification for Congress. Apparently, the car fleet average will be over 37 mpg and the truck fleet will be over 27 mpg. I'm thoroughly impressed. Congress can't argue with 55% of sales being Flex Fuel. There is clearly lots of previous investment in products like the Volt. GM does well to point that out.
It is great that GM points out some of the awards to its cars in the product portfolio portion of the report. Later, GM identifies that 100% of its current cars are above the industry average.
Demand Stimulation
GM basically asks the government to invest venture capital in new GM cars. It sounds like begging. I don't like that.
Summary
In other words, GM is committed to earning its way, as mentioned throughout the report.
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