GM?s executives announced deep cuts to the company Tuesday, calling them a “plan to win.” But a lack of details about that plan and previously announced cuts have GM?s local plant at a loss.
General Motors said it would lay off salaried workers, cut truck production, suspend its dividend for the first time since 1922, and borrow as much as $3 billion. The cuts will include thousands of jobs in an effort to generate $10 billion in “cash improvements” by the end of 2009.
“Our plan is not a plan to survive ? it is a plan to win,” GM Chief Executive Officer Rick Wagoner said in a broadcast to employees. “We need to take some very tough
actions to ensure our survival and success.”
Wagoner and GM executives declined to discuss the effect on specific plants, leaving another question mark dangling over GM Powertrain?s Baltimore transmission plant in White Marsh.
The plant builds the Hybrid 2MODE transmission, used in the Chevrolet Tahoe sport utility vehicle hybrid, as well as the Allison A1000 six-speed automatic transmission, used in the Chevrolet Silverado and GMC Sierra heavy-duty trucks.
GM Chief Operating Officer Fritz Henderson said thousands of jobs will be cut at truck assembly and parts factories, and is expected to slash truck production capacity by 300,000 units, twice as many as it announced last month.
Earlier this year, the company said it would cut shifts at four plants including two in Michigan, which are customers of the White Marsh plant. Those cuts may have an effect locally, but plant spokesman John Raut said it?s still not clear if White Marsh jobs will be lost.
Six weeks ago, GM said it would close four SUV and truck plants, though none are customers of the White Marsh facility.
However, White Marsh plant leaders have pointed to its production of the hybrid truck transmission as a possible saving grace for the facility. GM said it would increase powertrain-division spending to support fuel-efficient and alternative fuel technologies in a release Tuesday.
Raut acknowledged the questions facing the plant, but said employees have held to a “wait and see” approach.
“Basically right now, they [workers] don?t want to speculate,” he said. “They look at it as, the leaders have a plan. I think people have the, ?let?s wait until we hear from leadership? [position].”
