Bloomberg: GM Will Cut 10,000 More Jobs, Speed Shift to Cars, People Say

[marmar]

GM Will Cut 10,000 More Jobs, Speed Shift to Cars, People Say

By Jeff Green and Alan Ohnsman

May 29 (Bloomberg) -- General Motors Corp. plans to eliminate at least 10,000 more jobs by offering buyouts and will accelerate its shift to car production from trucks in a bid to end three years of losses, people familiar with the decisions said.

A reduction of 10,000 employees would equal 14 percent of GM's United Auto Workers payroll and push the number of buyouts and early retirements to at least 44,400 since 2005. The largest U.S. automaker already lowered its planned North American production this year by 138,000 pickups and sport-utility vehicles after record gasoline prices crippled sales.

GM probably will announce the new buyouts before its June 3 annual meeting, where Chief Executive Officer Rick Wagoner plans to discuss its strategy to build more cars and fewer trucks, said the people, who asked not to be named because the information is still private.

``We probably need to trim back some truck and SUV capacity,'' GM sales chief Mark LaNeve said in an interview in Los Angeles late yesterday. ``We need to add on the cars and crossovers and we need to continue to fine-tune our overall truck output.''

U.S. sales of the Detroit-based carmaker dropped 12 percent through April as demand for light trucks plunged amid a slowing economy and this year's 30 percent jump in gasoline prices. U.S. sales of the GMC Sierra and Chevrolet Silverado pickups fell 19 percent through April, Autodata Corp. in Woodcliff Lake, New Jersey, estimated.

Average U.S. retail gasoline reached a record $3.95 a gallon yesterday, according to the AAA, the nation's largest motorist organization.

Weak Truck Market

``The biggest issue we're dealing with now in profitability is how weak the truck market is,'' LaNeve said. ``We have better profits in trucks; everybody has better profits in trucks.''

Spokesman Tom Wilkinson wouldn't comment on GM's plans.

GM offered buyouts or retirement incentives to all 74,000 UAW members to speed up older workers' departures. As part of the four-year union agreement approved in 2007, GM identified at least 16,700 jobs where future workers will be paid about half as much as current union members. .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=ao4rP8KStlR4&refer=home

[maxsolomon]

1. ``We probably need to trim back some truck and SUV capacity,''

ya think? how is this company still in business?

FIX THE RAIL SYSTEM NOW.