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Article by jekky

The world’s largest car manufacturers?? General Motors Corporation (General Motors Corporation), as from the increased competition of foreign car companies, serving and retired employees health care costs are high, and has been declared bankrupt Delphi auto parts sector could face another strike difficulties, is currently in extremely difficult situation. Although the company earlier this month reached an agreement with the United Auto Association, first cut most of the retired employees health insurance benefits, but the stock price fell over the past few days, indicating that investors drastic changes have taken place between the atmosphere. Suddenly, the prospect of GM bankruptcy, has been hard to imagine has suddenly turned into the market competing to guess the time.    In the first three quarter, the company has lost about 22 billion, in July has dropped more than 40%, coupled with high oil prices, which makes the company’s high fuel consumption of cars is interested in the company’s U.S. market share from 43.8% in 1980 down to the first 10 months of this year, statistics show that only 26.2%.    Of course, filed for bankruptcy law protection, could be the GM of a feasible path. Like the airlines, such as bankruptcy, the program helps companies temporarily from heavy debt and other costs of distress, to find a way to get out of trouble, make them reduce the impact of the business. But in any case, this well-known U.S. companies go bankrupt if, on the market’s short-term psychological impact, will allow investors unbearable. In addition to the impact on the Dow Jones index, the bankruptcy of General Motors, also may affect the overall economy, from car factories to dealers, and then extended to the financial difficulties of the pension security companies (Pension Benefit Guaranty Corp.).        News Links: General Motors fight back rumors of bankruptcy    Cuts 3 million people, 12 factories closed or cut, intended to eliminate the market on rumors that GM might bankrupt    General Motors on November 21 announced that it will lay off from 2005 to 2008 among 3 million people, close or downsize 12 facilities, and reduce the one million annual car production to reach 7 billion U.S. dollars by supporting the purpose.    The company also said it has reached an agreement with the United Auto Workers union, which agreed to cut GM 3 billion U.S. dollars annually for health care expenses.    Deutsche Bank raised the same day GM’s bond rating, said the company hopes to avoid bankruptcy, to life. GM’s stock price last Wednesday fell to its lowest level in 18 years.    Alleged that the move is to let Wall Street analysts to stop speculation on the generic may be bankruptcy. The paper said it is not clear which plants will close, but the person said GM plant closures will not affect future product plans.    Bankruptcy rumors    Some experts believe that producing the Chevrolet GM Lansing process center may close because of poor sales, the company has been idle for several months. Other analysts said the possible closure of two other factories, one is the production of Georgia Doraville minivan plant, another is the production of SUV’s Janesville, Wisconsin plant. GM has not yet responded to the report.    In October, the world’s largest parts supplier Delphi Corp. filed for bankruptcy protection, GM could face a huge burden on health care and pensions. The cost of health care and other benefits too, SUV sales are sluggish, and the U.S. market is to divide up the internal and external foreign depots, so that the world’s largest carmaker exhausted.    Recently, GM was the first to provoke the North American auto industry price war, launched the “red label” promotional activities. The promotion increased their anxiety about the future of the market. General Motors announced on the second day of promotion, GM’s stock fell to its lowest point in 23 years, to 22.51 U.S. dollars. Promotion programs also attracted analysts a sigh. Analysts said GM probably will be 12 months, filed for bankruptcy protection.    GM has been trying to eliminate the bankruptcy rumors. Not long ago, the company’s Web site caused by GM employees, Wagoner said the open letter, General absolutely no plans or strategic considerations to filing for bankruptcy, not even a little bit of thought.    Misery loves company    This year, the world’s largest auto maker lost nearly 4 billion U.S. dollars, Wagner promises to be announced before the end of this year a larger reorganization plan, so GM’s production capacity by the year 2008 consistent with the North American sales. Detroit-based General Motors and United Auto Workers union officials have been in on the details of the scheme and its impact on the thousands of workers to negotiate.    Compared with GM, Ford no better. The face of growing financial crisis, recently, Ford’s new head of North American operations Mark? Field warning to employees, said the company plans to cut next year, the North American subsidiary of 4000 full-time employees, accounting for 10% of the total number of the company.    If the General Motors announced the closure of the plant, would be a United Auto Workers union against another. GM, Ford, and two cars before the respective components giant Delphi Corporation, and VisteonCorp. Will lead to United Auto Workers union in total in the tens of thousands lose their job.    When the U.S. car manufacturers in the heavy labor costs and medical benefits are struggling under the pressure of the occasion, the Japanese Toyota Motor indeed too proud. It is reported that, according to informed sources, Toyota Motor announced plans late next month of 2006 business goals, companies may develop an annual output of 9.2 million vehicles ambitions. With a range of new Toyota models may be a gamble, as the world’s largest automobile manufacturer.

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