DETROIT (AdAge.com) -- General Motors Corp. Chairman-CEO Rick Wagoner today announced that the troubled auto giant will close nine North American plants by the end of 2006, and 30,000 manufacturing jobs will be eliminated in the next three years, mostly through attrition and early retirements.
|Photo: General Motors|
|From its global headquarters in Detroit's Renaissance Center, General Motors has announced plans to close plants and eliminate 30,000 jobs.
$6 billion cost-cutting target
The latest moves, Mr. Wagoner said at a press conference at corporate headquarters, accelerates GM's cost-cutting push from the previously announced target of $5 billion to $6 billion by the end of 2006, plus an additional savings of $1 billion in net material costs.
The company reported a combined loss of $4.1 billion in the first nine months of 2005 for its auto operations in North America, the world's biggest vehicle market. Overall, GM's global losses were smaller for the period, $2.7 billion, since some regions of the world are profitable.
GM's North American vehicle brand advertising will continue to highlight consumer benefits and value as well as continuing to adjust sticker prices closer to actual transaction prices, Mr. Wagoner said. GM will take a more regional approach to advertising, incentives and promotions in certain undisclosed markets where it is underperforming.
Keeping all its brands
The top executive said the automaker remains committed to keeping all of its vehicle brands, which are: Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab and Saturn.
Industry experts have criticized GM for having too many brands and too many similar models across those brands.
Starting in January, GM said it will start rolling out more than a dozen all-new versions of its full-size sport utility vehicles for Chevrolet, GMC and Cadillac, with the next generation of full-size pickups coming in 2007.