GM’s Press Release

Here’s the announcement cited in yesterday’s posting.

GM Fact Sheet: GM Turnaround: Actions and Accomplishments

Additional Cost and Liquidity Initiatives

GM announced operating actions, potential asset sales, and financing activities totaling approximately $15 billion

Announced plans for internal operating and Board of Director actions to generate approximately $10 billion in cumulative cash improvements by the end of 2009
Further reductions in truck capacity and related component, stamping and powertrain capacity
Reducing sales and marketing spending, and holding engineering spending
Reducing U.S. and Canada salaried headcount in 2008
Beginning in 2009, eliminating health care coverage for U.S. salaried retirees over 65, partially offset by pension increases
No base compensation increases for U.S. and Canada salaried employees and no annual discretionary cash bonuses for the executive group
Revising capital spending plans
Targeting working capital improvements, driven by inventory reduction
Deferring payments into the UAW VEBA trust until 2010
Suspending dividends on common stock

Announced additional plans for potential asset sales and financing initiatives to raise additional liquidity of $4-7 billion
Broad global assessment of assets for potential sale or monetization
Strategic analysis underway for HUMMER
Plan to opportunistically access global markets for capital
Previously Announced Cost Reduction Activities

Announced an additional $4-5 billion in cost savings by 2011 driven by the implementation of the 2007 GM-UAW contract
Includes independent healthcare VEBA scheduled to begin in 2010
19,000 participants in 2008 attrition program
Announced additional structural cost savings of more than $1 billion by 2010
Announced that production will cease at four North American truck plants and shifts would be eliminated at two others
Achieved $9 billion structural cost reduction from 2005-2007 in North America
2005 health care agreement
North American capacity reductions of nearly 1 million units
34,000 participants in 2006 hourly attrition program
Spending for U.S. hourly and salaried legacy pension and health care will decline from annual average of $7B over last 15 years to less than $2B per year in 2010
Structural cost reduced from 35% of revenue in 2005 to 30% in 2007; targeting reduction to 25% by 2010 and 23% by 2012
Product Excellence

Numerous prestigious industry awards
Saturn Aura and Chevrolet Silverado 2007 North American Car and Truck of the Year; Chevrolet Malibu 2008 North American Car of the Year
2008 Cadillac CTS, Chevrolet Malibu and Corvette Car and Driver “10 Best” cars, and Automobile Magazine “All Stars,” Motor Trend Car of the Year
Strong car and crossover sales increases (U.S., June CYTD)
Saturn Aura (up 21%); Buick Enclave (up 291%); Pontiac Vibe (up 28%)
Chevrolet Malibu (up 31%) – average transaction prices up more than $4,000 and residual values up 11 points
Cadillac CTS (up 34%) – average transaction prices up more than $8,000
Upcoming products
18 of the next 19 major launches will also be cars and crossovers, including:
New midsize Buick sedan,
New CTS coupe and sport wagon,
Midsize crossovers for Cadillac and Saab,
Compact crossover for Chevrolet,
New midsize car and wagon for Saab
Chevy Camaro and Pontiac Solstice hardtop; G8 sport truck
Chevy Volt
Revitalized U.S. Sales & Marketing Strategy

Retail share stabilized near 20%
Incentive spending reduced by 24% from 2004-2007
Reduction in daily rental sales of nearly 200,000 units 2005-2007
Exterior styling cited as top reason for purchase
Average transaction price up 3%
Introduced GM channel strategy:
73% of Buick-Pontiac-GMC sales through aligned dealers
Reduction of 635 dealerships from December 2005 to June 2008

Industry’s best 5-yr warranty coverage program – confidence in GM products
89% reduction in recalls 2005-2007
New vehicle launches performing at record warranty levels
Chevrolet Malibu ranked highest in initial quality according to J.D. Power & Associates in the midsize car segment and was the highest-ranked domestic vehicle


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