: GM to announce production/plant cuts



caddiedrummer
10-11-08, 09:07 AM
The wire services are reporting that as early as next week GMwill have further production cuts and plant closures. Maybe it is a good thing I can't sell my M5.

CIWS
10-11-08, 09:32 AM
and so is BMW , Toyota, and many other car manufacturers now. The reason being the expected drop in auto sales based on what is turning out as a world wide recession. A pretty smart move business wise for all as it's obvious there is going to be less car sales in the next year or two, so why leave plants open producing cars that won't be sold and spending cash on paychecks.

GM and Chrysler have apparently been in merger talks over the last month and GM has denied any talk of declaring bankruptcy. Sounds to me like they're thinking wisely and with good business sense under these conditions.



"Sales for most automotive luxury brands fell hard in September, as affluent car shoppers stayed home and watched the financial-industry crisis unfold on TV and in the newspapers.
Consumers are “keeping their hands on their wallets,” said Don Esmond, senior vice president of automotive operations for Toyota Motor Sales U.S.A. Inc., in an Oct. 1 conference call."

"Remarkably, BMW conceded in August it was not likely to post higher U.S. sales this year, ending a streak after 16 consecutive years of growth."
"U.S. sales for the BMW brand fell 29.5 percent in September versus the year-ago month, to 14,744, according to AutoData. Thanks to the credit crisis, that was much worse than BMW was doing earlier this year. Year to date, BMW-brand sales were down 9.6 percent, to 195,633."

"This calendar year, Porsche’s U.S. sales were down 17 percent through August, to 19,618. For the month of August, U.S. sales were down 44.9 percent from the year-ago month, according to AutoData"

c5 rv
10-11-08, 10:36 AM
WJR radio in Detroit quoted a GM representative that the rumored production cuts and plant closures have already been announced, though they could be moved forward.