General Motors has planned more dire measures as company CEO Fritz Henderson declared that GM set to announce more plant closures and job cuts in the coming weeks. GM only has until June 1 to sort out agreements with creditors and unions to escape a government-forced bankruptcy. GM, along with ailing automaker Chrysler, both failed Washington’s auto task force’s assessment.
The company initially told regulators that it will be shutting down 14 of its 47 US plants by 2012 and cut 20,000 jobs in the US. It seems, however, that the company needs to up those numbers.
“There is no question that as we look to revise our plan to cut deeper and go faster …there will be further reductions in manpower,” Henderson said. He said that the company still prefers to settle issues through restructuring rather than by filing for bankruptcy.
GM has been receiving bailout money and has survived from taxpayer’s funds for the past months. Positive news came in just weeks ago that GM will not be needing any more money from the government for the next few months as numbers swung to its favor. Still, GM is surviving almost on a day-to-day basis.
Henderson also quashed the speculation that GM will be focusing on Chevrolet and Cadillac brands and dropping several brands from its GMC and Buick divisions.
Source: CNN Money
