General Motors to slash 47,000 jobs
Jacob Saulwick,February 18, 2009 - 2:37PM Sydney Morning Herald
The parent company of Australian car maker General Motors Holden will slash 47,000 jobs worldwide in the coming year, but it remains unclear how many local positions are under threat.
General Motors will lay off 26,000 workers outside the US as part of a plan to remake the company in exchange for massive financial aid, according to a document lodged this morning with the US Treasury.
But the carmaker says it expects Holden to remain viable, in part because of assistance extended by the Australian Government.
Holden's plans for a new, more fuel-efficient car, financed with government help, should ensure that Holden remains a profitable arm of GM worldwide, the company said.
Holden is not ruling out cutting local staff.
"We are scrutinising all aspects of the business and will be making some decisions - some of them tough decisions - in the coming weeks in terms of our structure and operations,'' a spokesman said.
"All of this contributes to the ultimate goal of being a viable, sustainable local operation,'' the spokesman said.
The survival of the global carmaker is far from certain.
GM has lodged restructuring plans with the US Treasury as a condition of a temporary multi-billion dollar survival loan.
With sales plummetting, GM could need a $US30 billion crutch from the US Government by 2011, the Treasury filing asserted.
The company is also asking for help from the governments of Canada, Germany, the UK, Sweden and Thailand.
Some worrying news for workers in Australia's automotive production industry, although there seems some hope as our Government continues to support Holden in its efforts to produce. Are you aware of other instances through our recent economic history where the Australian Government has stepped in to 'prop up' car companies producing in Australia?
Subscribe to:
Post Comments (Atom)
2 comments:
Wasn't Ford recently in the last 5 years also facing a job slashing crisis? I recall hearing that one of its production centres had either been bought out or had to be shut down due to insufficient finances or around those lines. Why wasnt the government there to help them there or did i miss it?
yes sam, you are correct, ford slashed 30,000 jobs and shut down 14 factories to maximise profits in 2005 and again now.I dont think that ford asked for government assistance then? and now its worse so they were forced to take action. I think that the automotive industrys decline is universal, combined with fuel prices, financial crisis and environmental concerns etc. this trend wont be reversed overnight and car makers must be creative and resourceful to ride it out. Is the instance you are reffering to Mitsubishi?
Post a Comment