GM: More Cuts in the Offing?
August 01, 2007
What was Paul Ballew, General Motors' executive vice president of Global & Market Analysis, suggesting when he said Wednesday that the automaker will "accelerate (current) restructuring efforts where appropriate" ?
Does it mean more layoffs? Are more plant closings in the offing?
Ballew made the comment during a conference call with media and analysts regarding July vehicle sales, which, for GM, dropped by 18.5 percent, according to Edmunds.com's statistics.
"We are continuing to get the business healthy in North America," Ballew said adding "our cost cutting efforts never stop."
Indeed, cost-cutting wins most of the credit for GM posting better-than-forecasted second-quarter earnings of $891 million, compared with a $3.4 billion loss in the same quarter a year ago.
But GM can't achieve its turnaround on cost-cutting alone, and Ballew said the automaker is behind on its goal to sell three million vehicles at retail this year.
Posted by Michelle Krebs at 6:10 PM under GM , News | Comments (0) | digg this | Seed Newsvine
Leave a comment