AutoGiants Restructuring Strategy!
"Our industry is beginning a dramatic restructuring which is sorely needed." - Bill Ford
GM shown $1.5B losses in third Quarter 2005. Ford comes up with $284M losses.
GM The top line growth fall added up wih unavoidable bottom line economic crisis added to the woes. This year GM payed $2B to Fiat Auto to extricate itself from the deal to buy Fiat. Delphi, car-parts biz of GM, filed chapter 11 bankruptcy protection. GM is faced with high labour costs, it says $1500 in price of every new vehicle goes towards health care for past and present employees. Leading credit agencies downgrade its debts to "Junk" status.
Ford Motors Ford is also facing problems with intransigent unions. Ford plans to shutdown NorthAmerican factories in the January restructuring plan. Bill Ford has to tackle labour union leaders to go ahead with the restructuring plans.
However the detroit carmakers are circumventing the main problem: American market tilt towards japense automakers. In past, GM's sale has fall down by 25% and Gord by 20%
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1 comments:
I am happy to hear GM is placing $1500 in the price of every new vehicle is going towards health care as it is a great aspect to all employees.
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