Finally, General Motors published some media information and its plan for restructuring, named Plan for a Viable, Sustainable Company. The main quote for Bochum and Ruhr is in the press release. It’s a quote form the plan (see link below). There doesn’t seem to be more details in the plan.
Europe – Europe is a highly competitive environment that is unprofitable for many vehicle manufacturers, and has a relatively costly restructuring environment. GM has engaged its European labor partners to achieve $1.2 billion in cost reductions, which include several possible closures or spinoffs of manufacturing facilities in high cost locations. In addition, GM is restructuring its sales organization to become more brand focused and better optimize its advertising. GM is also in discussions with the German government for operating and balance sheet support. A sustainable strategy for GM’s European operations may include support from partnerships with the German government and/or other European governments. The company expects to resolve solvency issues for its European operations prior to Mar. 31, 2009.
We know the deadline and we know the state’s first minister is in the USA. The topic General Motors and Opel will be in the media for the rest of the week. Tomorrow European and German officals will talk, we will get reactions from the USA and so on.
During 2009-2014, GM also is requesting funding support from the governments of Canada, Germany, the United Kingdom, Sweden, and Thailand, and has included an estimate of $6 billion in funding support by 2010 to provide liquidity specifically for GM’s operations in these countries.
Here’s the press release from General Motors which contains the link to the following PDF document.
Looking at the regional newspapers, listening to local radio stations, reading blogs and watching news, there is an important topic today: “General Motors” is finanlizing its restructuring program wich has to be delivered to the US Treasury by the end of Tuesday. At first look, this sound like a pure US topic. It isn’t because General Motors needs to save money and to show how it will use the money it receives from the US government to keep jobs – jobs in the USA, not in Europe. Therefore, experts and due to media reports insiders expect that General Motos will close or sell some factories in Europe. Publicly discussed, German states are thinking about bailing out Opel. After 80 years it would become a German company again.
After the restructuring program will be public, I want to watch the reactions of the US and the European public, reactions in regard on the program and the reaction of the US government. The first minister of North Rhine-Westfalia is already in the USA.
The restructuring programm is expected to be presented to the public at 6 p.m. EST. This would around midnight.
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