The Fall of GM: A Visual Guide

The Fall GM Ended the Corporate Aviation Operations; all jets to be sold GM has offered bondholders some equity in exchange for the debt March 31st deadline to get Suspended concessions from union workers the jobs bank Will fire 10,000 salaried workers globally and cut the pay of many who remain Seeking suspension of payments into the Voluntary Employee Benefits Ássociation A health-care trust Resisting Change Seat belts, airbags and catalytic converters were all fought before being imple- mented late in the game Too Many Dealerships Excess competition for a dwin- dling customer base costs up to $4 billion per year Fumbled Electric Vehicles The EV1 was the future and GM pulled the plug prematurely Health Care for Retirees In addition to pensions, this is an estimated cost of $60 billion Sub-par Quality Decades of focusing on profits over production have reduced market share by half. Quality may have improved but perception lags reality Slow on Hybrids Millions spent lobbying against stricter fuel stan- dards for trucks and SU's while the Japanese got a 10 year jump on hybrid technology Worker Pay Plant worker base pay is $28 an hour before benefits Jobs Bank Paying workers not to work costs $750 million per year Too Focused on Trucks and SUV's Unprepared for gas and energy spikes and demand for smaller and more efficient cars Pensions Over $7 billion per year to cover more than 400,000 retired workers Health Care Generous coverage costs $5.6 billion a year Too Many Brands Executive Pay Lackluster and similar offerings divide up resources and attention CEO pay jumps 40% on record losses to $14.4 million a year United Auto Workers Management INTERNAL FACTORS. GM EXTERNAL FACTORS Credit Crunch Customers are unable to get car loans or leases due to reduced national lending Global Slowdown Even GM's growing Asian market has felt the financial crisis Rising Health Care Costs Premiums remain under contract while costs skyrocket Foreign Competition Japanese and Asian manufactures have consistantly produced quality vehicles Gas Prices Spike Oil hits $140 per barrel killing demand for gas guzzlers l Excess Liquidity A decade of cheap credit and too many people already have a new car, or two From Mint.com/blog and WallStats.com BAILOUT