GM Cuts Excutive Pay & Employee Benefits

[93Linear]

Looks like GM may be trying to save the ship after all ... From this article, dated 07-Feb-2006:

General Motors today announced a revised health-care benefit plan for salaried retirees in the U.S. that is expected to reduce the company’s liability by about $4.8 billion and its annual health-care expense by almost $900 million before tax. It also announced salary reductions for top executives, including a 50 percent reduction for CEO Rick Wagoner, 30 percent reductions for vice chairmen John Devine, Bob Lutz and Fritz Henderson, and a 10 percent reduction for Executive Vice President and General Counsel Thomas Gottschalk. A 50-percent reduction in compensation for outside board members was also announced. Investor Jerry York — who became a member of GM's board yesterday — suggested last month that GM should cut executive pay. Bob Lutz at the time rejected the idea. York has also suggested GM should dump two brands.

[timmehhhhhh]

Dumping Buick and Saturn seem like the obvious choices, but Saturn is supposed to have loyal customers satisfied with their cars and service and Buick is apparently doing well in China...

I still say they dump both of them...either Pontiac or Chevy should go too, but neither will since of their history..

[CosmicSaab]

Originally Posted by timmehhhhhh

Dumping Buick and Saturn seem like the obvious choices, but Saturn is supposed to have loyal customers satisfied with their cars and service and Buick is apparently doing well in China...

I still say they dump both of them...either Pontiac or Chevy should go too, but neither will since of their history..

Saturn has lost like 5x as much money over the past 10 years as Saab has.

What I love is Transcenda saying to dump Saab and Hummer because they are non core brands but somehow Saturn is a core brand?

Sure, sell Saab and Hummer, but you better get rid of the Saturn brand too, because it's costing more than any other division right now.

[Krg05-9-3]

Originally Posted by CosmicSaab

Saturn has lost like 5x as much money over the past 10 years as Saab has.

What I love is Transcenda saying to dump Saab and Hummer because they are non core brands but somehow Saturn is a core brand?

Sure, sell Saab and Hummer, but you better get rid of the Saturn brand too, because it's costing more than any other division right now.

Of ALL the GM brands...Saturn has the brightest future imo. Give it 5 years...Saturn will def be a "core" brand.

[Nimisys]

actually saturn is the one with most intersting position, it doesn't fit. you can no longer sell it on the economy end as you have moved chevrolet as your mainstream value brand, pontiac as your sporty brand and buick as your entry luxoury brand. they want to move satrun into the higher end of the mainstream value market, but thats going to be difficult as it it currently holds amazingly low resell values due to everyone viewing it as a economy car, not somehting of value.


fold saturn back into chevy, run the two name plates like you did with geo. let buick go after lexus, pontiac after scion and saab after VW. take GMC back to fleet sale and heavy truck only, give chevy two truck stylings to choose from, caddy after bmw/audi/mercedes, and let huimmer continue to eat away at jeep. you got enough bands to cover every market segment for every vehicle, stop doibling up on the mainstream.