Tuesday, February 17, 2009

UAW, Detroit 3 Reach Tentative Deal - GM To Cut 47,000 Jobs, Close Five Plants

Breaking - from the Detroit News, GM asking for $16.6B in aid if market conditions warrant. Here are the rest of the details:

-- Eliminating 47,000 workers -- 37,000 hourly workers and 10,000 salaried workers -- around the world this year, including 20,000 workers in the U.S.

In the Dec. 2 submission to Congress, the automaker said it would cut up to 31,000 jobs.

-- Shuttering five more plants in North America, bringing the total to 14 plant closures within the next three years.

-- GM continues to talk to dealers about the future of the Saturn brand, which could be eliminated in 2011 unless dealers come up with an alternative.

-- GM has several parties interested in buying the Hummer brand, but the brand could be eliminated by the end of March if a deal is not reached.

-- GM is negotiating a deal for Saab with the Swedish government, but if none is reached, the subsidiary could file for reorganization this month or next. That would leave GM with four core brands: Chevrolet, Cadillac, GMC and Buick.


Here is the UAW/Big 3 link:

"The UAW has reached tentative understandings with Chrysler, Ford and General Motors on modifications to the 2007 national agreements. The changes will help these companies face the extraordinarily difficult economic climate in which they operate. Discussions are continuing regarding the Voluntary Employee Beneficiary Associations (VEBAs) at all three companies.

"The UAW is withholding the terms of the tentative understanding pending completion of the VEBA discussions and ratification of the agreements.


And say goodbye to the PT Cruiser, destined to be one of those weird cars you see in collector's garages, as Chrysler hangs on by a thread.

Chrysler LLC will need an additional $5 billion to survive the U.S. recession, telling the Obama administration today that it plans to cut an additional 3,000 jobs this year as part of its restructuring plan.

The automaker warns that if it does not receive the federal money and needed concessions by March 31, "management believes the only alternative would be to immediately plan for an orderly wind down of all operations through a court-supervised liquidation.


The Dodge Durango and the Chrysler Aspen are also on the chopping block. Not to mention thousands of Michigan jobs. Keep you fingers crossed they can pull through.