[DETROIT - General Motors Corp. chairman and CEO Rick Wagoner said Tuesday that the automaker's turnaround plan for its North American division is on track, but he wouldn't update the company's earnings forecast. GM withdrew its earnings guidance in April after it lost $1.1 billion in the first quarter. Wagoner noted that the company had previously estimated earnings of $4 to $5 a share for the year.] We will not meet that, ... North America is missing, and missing badly. |
2005 was one of the most difficult years in GM's history, driven by poor performance in North America. |
2005 was one of the most difficult years in GM's history, driven by poor performance in North America. Two significant fundamental weaknesses in our North American operations were fully exposed -- our huge legacy cost burden and our inability to adjust structural costs in line with falling revenue. |
A lot of other things come along with Chapter 11, which basically end up in a lot of pain. |
A lot of times, people will get down on the situation with the unions and with the UAW. But this wouldn't have worked without good engagement at the local level with the UAW. They understand that improving quality and productivity is important for their long-term success as well. It's been a real team sport. |
All of our business units except GM North America are on or above track, and that has the extreme attention of us all. Progress is moving in the right direction ... but we still have more work to do. |
All this improvement is great, but all that does is get us in the game to play for improvements that we need in the future, so that we can be aggressive in the marketplace. |
Any time GM and UAW has something going on, we're all curious about how that may affect us, |
As we look at the responsibilities we have to a broad range of constituents, as we look at what we need to do to make the business successful, as we look at our businesses around the world, we think there are significant costs to bankruptcy. We don't think it's a good option. |
As we sit here today, it's our best guess and well thought out analysis, ... If we've learned anything in the last five years, it's that there's no guarantees in this business or any other business. |
Despite some speculation to the contrary, we at GM are still moving. In fact, we're taking some big steps to get moving fast in the right direction. |
Don has played a pivotal role in strengthening GM's global manufacturing competitiveness, ... His contributions provide an important foundation for our future as we continue to bring these world-class manufacturing processes to new plants and existing facilities around the world. |
Everybody's got a piece of it. What we're trying to do is look at each piece and say, 'Where are we really uncompetitive versus the people we run against?'... If we're out of line, that's what we need to work on. So, it may not be exactly the same sacrifice everywhere, but I think just about everybody's got a piece of it. |
Ford, as I understand it, had done away with the concept of regional management, and now they've re-introduced that in Europe, so it's kind of a two-way street. |
Frankly, we've done it in the fairest and most cost-effective way we could do it, |