Wired.com obtained a letter send by Troy Clarke, president of GM North American, to no less than 29,000 employees, asking them to urge lawmakers and senators to provide more funds for General Motors. What's interesting is that the Congress has already approved $25 billion in loans for the American carmakers, but GM demanded a second funding program that could help it concentrate on more fuel efficient cars.
General Motors had probably the lowest figures it could get, with October sales down 45 percent and $2.5 billion loses reported in the third quarter. In addition, GM shares reached the lowest point in 65 years and analysts predict even tougher times during the next year.
Here is the letter sent by Troy Clarke, head of GM North America, to approximately 29,000 employees (credits to Wired.com):
Next week, Congress and the current Administration will determine whether to provide immediate support to the domestic auto industry to help it through one of the most difficult economic times in our nation's history. Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis.
As you know, we have taken the tough, necessary actions over the last few years to strengthen our competitive position. With our UAW partners we have reshaped our business and will have reduced our structural costs by more than $13 billion by 2010 and have closed the quality and efficiency gaps with our competitors. We also are building products that have received great customer acceptance and acclaim, as we have seen with the Chevy Malibu, Cadillac CTS and our family of crossovers. And, there's more to come with the Chevy Volt which will position GM as a global technology leader as well as more hybrids and fuel efficient passenger cars like the Chevy Cruze.
The consequences, however, of a portion of the domestic auto industry collapsing extend far beyond GM's ability to continue its transformation. One in 10 American jobs depend on our industry, as well as the health of communities, dealers and suppliers in all 50 states. As you know, nearly 3 million employees, retirees, and their families also depend on us for their pensions and health care. Because of our economic contribution, the cost of allowing this industry to fail would be catastrophic: 3 million jobs lost within the first year; U.S. personal income reduced by $150.7 billion; a government tax loss over three years of more than $156 billion.
This level of economic devastation far exceeds the $25 billion of government support that our industry needs to bridge this current period. Today, I want you to take the time to contact your members of Congress to ask them to support America's domestic auto industry. Please call the following number to be connected with your legislators 1-866-927-2233. Directions and key messages are in the attached document to assist you with the calls. Also attached is a fact sheet that includes the economic figures cited above.
Additionally, you can visit www.gmfactsandfiction.com <http://www.gmfactsandfiction.com> to obtain further information on the auto industry and GM. Support for the domestic auto industry will contribute to a stronger economy, save millions of jobs, and establish U.S. manufacturing and technology leadership in the global marketplace. As an employee, you have a lot at stake and continue to be one of our most effective and passionate voices. I know GM can count on you to have your voice heard.
Thank you for your urgent action and ongoing support.
GM North America