The full text of GM’s submission to the US Congress leaked early (surprise surprise).
To save you all the trouble of looking, here’s the only sentence in the 27-page document that mentions Saab:
GM will also immediately undertake and expedite a strategic review of the Saab brand globally.
That’s it. One sentence. 15 words.
To make that little bit of corporate-speak clear – Saab is now up for sale.
You guys keep posting in comments. I’m going to try and make sense of it all and post a summary up here on site so keep checking in.
I’d also like to take this opportunity to scream a nice, loud SCREW YOU to all the mofos at GM have who have sucked the life out of our favourite little brand and now intend to hang it out to dry. May the hairs on your bum turn into fish hooks and rip the sh!t out of you.
Comment of the moment, from Troll96:
Notice how GM plans to increase its emphasis on flex-fuel cars, hybrid technology, turbocharging and 4 cylinder engines. So, of course, Saab has to get the ax. Am I missing something here?
Rignt now, in the heat of this particular moment, I hope Wagoner’s Malibu hybrid breaks down on the way to Washington.
Here are the bones of the GM plan for those who can’t be bothered reading through the whole thing:
GM’s plan involves the following moves:
• Slashing hourly costs in North America by $3.6 billion in an attempt to make GM competitive with foreign automakers no later than 2012. GM currently has 96,000 workers and the goal is to have 65,000 to 75,000 workers by 2012.
• Reducing or eliminating four of its eight brands and cutting the number of dealers. The plan involves exploring the sale of Saab, talking to dealers about the future of Saturn and shrinking the Pontiac brand to more of a niche offering.
• Cutting executive compensation and eliminating its corporate aircraft fleet. CEO Rick Wagoner will take a $1 salary next year, and GM is cutting the top four senior executives will see their cash compensation slashed 50 percent in 2009. Neither Wagoner nor top executives will receive bonuses this year or in 2009.
• Complying with the Energy Independence and Security Act of 2007, which was designed to improve fuel efficiency and cut dependence on foreign oil. GM outlined its current lineup of cars and crossover vehicles and plans to shift its portfolio towards producing even more of the fuel-efficient vehicles. For 2009, GM has 18 models in the U.S. that gets 30 mpg on the highway and that push towards more fuel-efficient vehicles will continue, Henderson said.
The bill for all this?
GM is asking for $18 billion in financing, which includes a $12 billion loan and a $6 billion revolving line of credit that would be tapped if the market worsens.
The automaker would make several withdrawals of the cash in coming months. GM needs $4 billion this month to pay its bills and would draw $4 billion more in January.
GM would make a $2 billion withdrawal in February or March for a total of $10 billion. The remaining $2 billion would help ensure GM has enough cash to pay its bills through the end of next year, assuming an annualized sales rate of 12 million units.
The $6 billion line of credit could be tapped if the U.S. auto industry worsens to an annualized rate of 10.5 million units.