General Motors Corp. this week announced some tough medicine designed to help the auto giant through the industry's monumental changes.
GM Chairman and CEO Rick Wagoner (pictured) announced Tuesday that the company will lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion as it adjusts to a declining U.S. market. The goal: to raise $15 billion to help turn around GM's North American operations.
"We are responding aggressively to the challenges of today's U.S. auto market," said Wagoner. "We will continue to take the steps necessary to align our business structure with the lower vehicle sales volumes and shifts in sales mix. We remain committed to bringing to market great products that target changing consumer preferences for more fuel-efficient vehicles."
Is GM doing the right things? Is it doing enough? What are its long-term prospects? Over the past few days WWJ Newsradio 950 reporters asked those questions to numerous experts on the auto industry and corporate turnarounds. Here are some of the responses:
WWJ and Fox 2 News reporter Murray Feldman asks: Is GM's restructuring enough to put the company back on track and satisfy Wall Street? Credit rating agencies are not convinced.
Van E. Conway, a local expert on business turnarounds during tough times speaks to WWJ about GM's plan.
WWJ's Marie Osborne spoke live with Wall Street Journal Detroit Bureau Chief Neil Beaudette. He said GM should considering following in the footsteps of Ford Motor Co., by selling off some of its many brands.
WWJ Autobeat reporter Jeff Gilbert hosts a WWJ news special looking in-depth at GM.
Wednesday's Worldwide Automotive Report took a long look at the GM turnaround plan.
WWJ's Bill Stevens talks with a number of experts such as Murray Feldman, Jeff Gilbert, David Healy and Keith Crain.
WWJ's Bill Stevens talks with AutoBeat Daily's Bill Hampton.
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General Motors Corp. this week announced some tough medicine designed to help the auto giant through the industry's monumental changes.
