Jump to content
Sign in to follow this  

Rick talks back!

Recommended Posts

16 November 2005 We’re going through a rough patch of road these days, and it’s attracting a lot of opinions about our Company and its future. Some of these opinions are thoughtful and helpful… others are less so, and in some cases, they’re just plain wrong. It’s those that particularly bother me, and I’m sure, many of you as well. One that falls in that latter category is the discussion by some of a hypothetical GM plan to declare bankruptcy. I’d like to just set the record straight here and now: there is absolutely no plan, strategy or intention for GM to file for bankruptcy. Despite the recent large losses in our U.S. business, GM has a robust balance sheet and strong liquidity – $19 billion in cash at the end of the third quarter, plus $16 billion in long-term VEBA* assets, which provides us further significant liquidity support. The large losses at GMNA are unsustainable, for sure, and require a comprehensive strategy to address them… a strategy that must be implemented promptly and effectively, to get our U.S. business profitable again. And, that is just what we are doing with our turnaround plan. The plan is well known to you: (1) exciting new products, (2) revitalizing our sales and marketing strategy, (3) major reductions in cost and improvements in quality, and (4) reducing our health care cost burden. And, we are seeing progress… as but one example, the historic health care accord with the UAW was ratified last Friday. There is, for sure, more to do. But these actions, along with other initiatives such as globalizing our key business activities and exploring ways to improve GMAC’s credit ratings, are all designed to get us back to a robust earnings and cash flow position. All of this certainly involves changes… in many cases, significant changes that affect us personally. But, in the challenging circumstances that we are facing in the U.S., it’s clear that such changes are necessary. What we do not intend to do is file for a bankruptcy reorganization. That is not only unnecessary; it would be clearly contrary to the interests of our employees, our stock and bond holders, our dealers, and our suppliers and importantly, our customers. What we are doing is taking the necessary steps to get our business profitable. Thanks as always for your support. Rick

Share this post

Link to post
Share on other sites

Your content will need to be approved by a moderator

You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets



Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.