GM Warns Exec Shake-Ups to Follow
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If you have been following the story, you know by now about the changes made so far in GM's upper management. Yesterday however, GM's CEO Fritz Henderson, warned that this is only the beginning, as the company plans to reduce its exec head count by 34 percent until the end of the year.
"GM will be making changes both in the structure and processes to run the business, which includes, for example, reducing executive manpower by 34 percent from year-end 2008 through 2009," the CEO was quoted as saying by Autonews. "Yes, there will be significant change."
As for the workers, the American manufacturer plans to shed some 6,000 people by the end of the year, which is about a 20 percent cut in personnel.
The statement, made during a web chat with reporters, was followed by a few clarifications released by Henderson on GM's bankruptcy measures. The CEO said that out of the 846 request submitted by the blacklisted dealers, 49 have been approved. The reviews for the others will be completed in a few days. Out of the 4,100 dealers asked to sign the participation letter, more than 99 percent of them have done so.
During the chat, Henderson was asked why GM decided to kill Pontiac and not sell it, as it has done with Hummer, Saturn and Saab. Henderson replied that "we have had success in discussions for buyers regarding Hummer, Saab and Saturn, but in the end, we did not see the same potential, to be honest, for Pontiac."
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