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BigPontiac

GM CFO: "I am in crisis mode"

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BigPontiac    28

Reuters

GM CFO: "I am in crisis mode"

Tuesday January 10, 2:38 pm ET

DETROIT (Reuters) - General Motors Corp. (NYSE:GM - News) Chief Financial Officer Fritz Henderson said on Tuesday that the automaker is operating in a "crisis mode" and shares the sense of urgency of Jerome York, a close aide to billionaire investor Kirk Kerkorian.

York, in a speech in Detroit, called for GM to step up efforts to stanch its mounting financial losses.

"This is one of our largest shareholders who is articulating his vision for what we need to do and frankly there is a lot that he had to say that I agree with," Henderson told reporters after listening to York's speech in a Detroit hotel ballroom.

Henderson said GM's board would review the company's dividend, but declined to say whether he would recommend cutting the quarterly payout as York had urged.

"It's something that the board of directors seriously considers on a regular basis," he said.

Henderson said it was "too soon" to discuss what other cost-cutting measures GM might take and declined to comment on whether GM could get the wage concessions from the United Auto Workers union that York had urged.

"To be honest I am in crisis mode. I agree with him," Henderson said. "You can't panic. That is not crisis mode. Crisis mode means taking serious action, decisively, quickly and addressing your problems as urgently as you possibly can. So I think I understand crisis mode and I am in it and have been for a while."

URL: http://biz.yahoo.com/rb/060110/autos_show_york.html?.v=2

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CaddyRich    0

One of the points Jerry York made today was the need to sell off Saab and Hummer. Not as easy as it sounds, Jer. GM would never sell off Hummer as it was a brand they created (not AM General) as their upscale SUV brand. As far as Saab is concerned, anyone interested in purchasing it is going to want to steal it because they'll smell GM's blood in the water.

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Mikko O    0

Saab is just another anchor that weighs GM down. Sell it off to the highest bidder.They probably spend more on Saab than they make.

I don't know if the General can swallow it's pride and rid it self of Saab. I do agree that it's a boat anchor and hasn't turned profit yet.!

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I dunno about dumping Hummer, to me that sounds far too much like a bad idea waiting to happen, however doing something to saab would probably be a good idea, they're kinda a quirky brand of car that you really don't see a whole heck of a lot of over here, other than in certain areas where the cars are really well known (which means not here in Alabama), but at the same time, I don't believe selling it off to the highest bidder would be the best course of action, but then again, that's just me.

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zoomtm    0

I don't think they need to dump it, I think they just need to find a point to it. It's one of those wierd brands that doesn't really have a defined place. It's nicer than Buick, but not as nice as Cadillac. As soon as GM finds a market for it other than college professors I'm sure it will be fine.

i see saab as a volvo competitor

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