On Tuesday after President Obama signed the stimulus bill, General Motors and Chrysler jumped up and asked the federal government for another another $14 billion in bailout funds. In return for more bailout from the goverment, both companies “promised to make further drastic cuts to all parts of their operations, in the hope that they can eventually strike a balance between their bloated cost structures and a dismal market for new car sales.”
G.M. announced they would “cut 47,000 more of its 244,000 workers worldwide” and shut down “five more plants in North America, leaving it with 33.” They also plan to cut their “lineup of brands in half, to just four: Chevrolet, Cadillac, GMC and Buick.” Pontiac will also “have a much smaller role, if any, in G.M.’s future.” And G.M. said they would phase out the “Saturn brand, which it once hoped would build small cars to counter the best of the Japanese brands.”
What a mess. None of us want to see anymore people added to the unemployment rolls, but these companies don’t seem to get that Americans “need cars that go farther on a gallon of gasoline, pollute less and save money at the pump.”
The bailout requests are now like some sort of endless money pit in the abyss.
[Originally published at TaylorMarsh.com]