Wild Ass Rumor of the Day: GM's Next "Bad News" Friday Looms; Job and Product Cuts?
We have it from a private source close to someone familiar with the story who heard it from a friend who heard from a friend that you’ve been messing around GM has some [more] bad news to release this Friday. Of course, given GM’s m.o., that’s a bit like predicting it’ll be “partly sunny with a chance of showers.” We’ve been calling-up the usual suspects to try and identify these not-so-glad tidings– to no avail. (Hey! What a great name for a Chevy!) But we’re getting closer. Deep Throat heard of our puzzlement and sent us a link to this story from Bloomberg. Seems one General Motors is getting ready to axe some damn thing, or a bunch of some damn things, in advance of its third quarter financial report (BIG owee) and next Friday’s announcement (we hear, also from a person familiar with this kind of shit) of the Chrysler merger. “General Motors Corp. may initiate a new round of cost cuts because a planned $15 billion in asset sales and savings won’t be enough to maintain its liquidity amid deteriorating sales, people familiar with the matter said.” Our equally unidentifiable but totally credible guy says “I think the bad news on Friday is more job cuts at GM and possibly the end for some products like the Solstice/Sky. Since the dealers were told to expect some bad news on this date, it has to be some product cuts. Run through last months sales report and pick out the obvious weaklings. DTS? STS? SRX? Hybrid trucks? Saturn Astra? Buick LaCrosse?” Sad to say DT, it could be just about anything that GM makes.
We live in strange times. Nobody believes the official spokesman, but everybody trusts an unidentified source.
When you work for a corporate borg, after a while you get used to the euphemisms. It's not outsourcing, it's shoring. It's not layoffs, it's restructuring. It's not not a buyout, it's a merger.
Woah, is that the death rattle I hear... how much money can one really expect to save in stopping the company matching of its 401(k) program, and it's tuition and adoption programs. This looks like a big red we are fuct in the very near term flag to me.