GM's restructuring plan -- FULL PDF!

[Mr. Wyndham]

Now, tell me this isn't transparency at its best.

This is the full 37-page viability and restructuring plan submitted to Congress today/yesterday. And GM will be posting a video explaining the the plans either tonight or tomorrow HERE.

Read up if you have some time...it's some interesting stuff.

PDF File:
restructuring-plan-for-long-term-viability.pdf

[zebra]

nice find

[Hylton]

Going to send almost 30,000 workers home - ouch!!!

[Angrybird 12]

Originally Posted by Hylton

Going to send almost 30,000 workers home - ouch!!!

still better than 3 million......

I read the whole thing at lunch today, and I must say I am impressed. I had not realized how much they had already done. and what was in the works already. I wonder what they ment by "the smallest car in the market"
I sure hope they get the money...

[Zabo]

So it's official. They're dumping Saturn, Saab, Hummer (DURR), and keeping Chevy, Caddy, Buick, Pontiac, and GMC. Smart move guys turning the Pontiac brand into a performance brand. May this be the beginnings of a MOPAR esque product line (more so than GMPP already is?) Apparently they're also keeping Holden, Opel and Vauxhall.

Are those other three stil turning a profit in Europe/Aus?

Either way, with HSV working with GMPP I think we'll see some bitchin camaros to come in the future. XD Maybe we could also see a limited production "Pontiac Performance Division" COPO Trans Am? I for one think this will fly with Congress, especially with Buick and GMC having merged into a single marque.

My only hope is that Saturn becomes a Tech division as opposed to a Performance division, and serve as a named R&D complex for GM itself. Possibly badging the Hybrid and Fuel cell tech for GM this way:

The Chevy/Buick Enclave with Saturn Hybrid Drive or Saturn FC Drive.

This way they could still save the brand, but not build cars under it anymore.

[radz28]

Originally Posted by Skyman 08

still better than 3 million......

I read the whole thing at lunch today, and I must say I am impressed. I had not realized how much they had already done. and what was in the works already. I wonder what they ment by "the smallest car in the market"
I sure hope they get the money...

Originally Posted by Zabo

So it's official. They're dumping Saturn, Saab, Hummer (DURR), and keeping Chevy, Caddy, Buick, Pontiac, and GMC. Smart move guys turning the Pontiac brand into a performance brand. May this be the beginnings of a MOPAR esque product line (more so than GMPP already is?) Apparently they're also keeping Holden, Opel and Vauxhall.

Are those other three stil turning a profit in Europe/Aus?

Either way, with HSV working with GMPP I think we'll see some bitchin camaros to come in the future. XD Maybe we could also see a limited production "Pontiac Performance Division" COPO Trans Am? I for one think this will fly with Congress, especially with Buick and GMC having merged into a single marque.

My only hope is that Saturn becomes a Tech division as opposed to a Performance division, and serve as a named R&D complex for GM itself. Possibly badging the Hybrid and Fuel cell tech for GM this way:

The Chevy/Buick Enclave with Saturn Hybrid Drive or Saturn FC Drive.

This way they could still save the brand, but not build cars under it anymore.

[Angrybird 12]

Originally Posted by Zabo

So it's official. They're dumping Saturn, Saab, Hummer (DURR), and keeping Chevy, Caddy, Buick, Pontiac, and GMC. Smart move guys turning the Pontiac brand into a performance brand. May this be the beginnings of a MOPAR esque product line (more so than GMPP already is?) Apparently they're also keeping Holden, Opel and Vauxhall.

Are those other three stil turning a profit in Europe/Aus?

Either way, with HSV working with GMPP I think we'll see some bitchin camaros to come in the future. XD Maybe we could also see a limited production "Pontiac Performance Division" COPO Trans Am? I for one think this will fly with Congress, especially with Buick and GMC having merged into a single marque.

My only hope is that Saturn becomes a Tech division as opposed to a Performance division, and serve as a named R&D complex for GM itself. Possibly badging the Hybrid and Fuel cell tech for GM this way:

The Chevy/Buick Enclave with Saturn Hybrid Drive or Saturn FC Drive.

This way they could still save the brand, but not build cars under it anymore.

From what I read they have not made a decision on what to do with the Saturn Brand. You see they have franchise agreements with the dealers of Saturn products that are different than with the other brands, What I read was they may just change what market Saturn will go after. I am still confident there will be a Saturn, but not as we see it today, it may become the Hybrid and high tech division.
Around here they are selling very well, they can't keep Outlooks or Vues, and Skys are very good sellers too.
The Aura and the Astra are lagging for some reason. I think what is hurting the Astra is for the price, you can get plenty other cars that get better mileage...

BTW here is the GM press release, a kind of condensed version of the plan for those that don't want to take the time to muttle through the whole thing.

[Hylton]

Interesting notes from restructuring plan. Granted, I am sure there are negative stats which are not mentioned:

Summary of GM Restructuring Actions and Results


A.1 Product Portfolio

Recognition of improved GM offerings
3 of last 4 ― North American Car/Truck of the Year awards – Saturn Aura, Chevrolet Malibu and Chevrolet Silverado
Since 2005, 180 U.S. product awards
Industry telematics leader with over 5 million OnStar customers
11 of last 13 new products introduced have been cars and crossovers
Reduced total U.S. vehicle nameplates from 63 (2004) to 48 (2008); U.S. truck nameplates reduced from 30 (2004) to 17 (2008)
Focused product development, technology and marketing resources on 4 core U.S. brands


A.2 Fuel Efficiency

Among U.S. industry leaders in fuel economy
20 models with greater than 30 mpg (highway), more than other manufacturers
7 of 20 Ward‘s Automotive segment leader positions, more than other manufacturers
6 Hybrid models
- Two-Mode hybrid system improves fuel economy 50% in city driving; received 2008 Green Car of the Year award
- GM will be the only manufacturer with a hybrid pickup truck; most affordable hybrid offerings in the market
Over 3 million GM Flex-Fuel Vehicles on U.S. roads
Largest fuel cell demonstration fleet (90 Chevrolet Equinox Fuel Cells on U.S. roads)
Approved the Chevrolet Volt for 2010 introduction



A.3 Marketing/Retail Operations

Migrating U.S. distribution network to 4 channels - reduced dealers from 7,500 (2004) to 6,500 (2008)


A.4 Manufacturing/Productivity

U.S. Productivity leader
Top assembly plant productivity in 11 of 20 product segments
5 of the top 10 most productive engine plants
#1 most productive transmission plant
Set the U.S. industry benchmark for workplace safety
One third the level of ―lost workdays as U.S.-based Japanese, German and Korean manufacturers
50% improvement over the past 5 years
Industry benchmark in environmental quality
13 U.S. sites that are 100% land-fill free
5 U.S. sites using landfill gas
2.6% of GM‘s U.S. energy consumption from renewable resources (photovoltaics and landfill gas)
More J.D. Power quality segment leaders than Toyota
48% reduction in warranty repairs since 2006
Reduced U.S. Powertrain, Stamping and Assembly plants from 64 (2004) to 47 (2008)
Breakthrough collective bargaining agreement
Total U.S. hourly manufacturing costs reduced nearly 50% (from $16 billion in 2004 to $8.1 billion in 2008)
Hourly new-hire wages reduced from $19.35 to $14.65


A.5 Structural Costs

Reduced annualized North American structural cost by $10B since 2005
Employment reduced 42% from 167,000 (2004) to 97,000 (2008)
Global functional organizations streamlined
Lowered engineering and capital expense per vehicle through global product development
Increased scale economies
Salaried workforce expense reduced by 20% on a run-rate basis in 2008
31


A.6 Capital and Cost Reductions

Implementing ―self-help actions to improve liquidity by $20B before the end of 2009
Significant asset sales completed or underway
- GMAC (51%)
- Allison Transmission
- Suzuki
- Isuzu
- Fuji Heavy Industries
- Electromotive Division
- AC Delco (in process)
- HUMMER (in process)
- Strasbourg Powertrain Facility (in process)
Dividends on GM stock suspended in August 2008


A.7 GM Executive Compensation

Total Compensation in the Bottom Quartile Compared to the Benchmark Companies
No bonuses 2005, 2008
Below target bonuses 2004, 2006, 2007
No long term incentive pay out 2004 through 2008
All stock options 1999-2008 underwater
Value of restricted stock units fell with GM‘s stock price
In addition, CEO/Chairman, COO/President and Vice Chairman
Salaries reduced as much as 50% from 2006 to 2007
CEO has or will forfeit 330,000 options in 2008 and 2009

Other

Supplemental Executive Retirement Plan (SERP) frozen and adopted lower accrual rate consistent with the tax-qualified plan on December 31, 2006
401k matching contribution eliminated in 2008
Post-65 healthcare benefits

[Hylton]

I think not doing anything with Holden, Opel and Vauxhall is a mistake. Merge it all.

[The_Blur]

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.

[kanys]

well this looks really good to me! I think it effectively shows how GM is going to use the money in a beneficial way, as well as demonstrate how catastrophic their fall would be to the economy. Also I was happy to not see the Camaro in the paper, since even though the V6 is quite fuel efficient for it's weight and power, it still is not what up to tree-hugger standards.

[DGthe3]

Glanced over it. Too much to read tonight

[Boba Vette]

ISUZU's still around!?!?!?

El Dumpo!

[GTAHVIT]

Originally Posted by Hylton

I think not doing anything with Holden, Opel and Vauxhall is a mistake. Merge it all.

I was thinking the same thing.

There must be something in that contract that prevents it for some time. Or, the obvious reason, Too expensive to do so.