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To: Dealer who wrote (45903)	1/7/2002 8:57:33 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

GM to announce job cut plans Also: Exec surprised by incentives' success By August Cole, CBS.MarketWatch.com Last Update: 7:35 PM ET Jan. 7, 2002 DETROIT (CBS.MW) - Amid word of a planned workforce reduction, a top General Motors executive said Monday he was surprised by how well the automaker's zero-percent finance program paid off after it was rushed into the marketplace following the September terrorist attacks. General Motors said it would announce plans on Thursday to reduce the number of salaried and contract workers in its ranks. "In 2002, we will continue to reduce salaried employment in the United States through normal attrition, voluntary early retirement programs and by employing fewer contract employees," the company said in a statement. In 2001, the company reduced its salaried tally by about 10 percent and expects to continue on that path this year. A specific target for 2002 was not available. Zero-percent finance program "We started that program not frankly expecting beyond our wildest dreams that it would be so successful," CEO Rick Wagoner told reporters at the North American International Auto Show in Detroit, referring to the program. It was a momentous step. As other U.S. auto manufacturers followed suit, the industry posted what became the second-best year ever. Following a sluggish period up until then, that surge came even as the nation's unemployment rate was rising for three months straight. While sales were climbing, production had eased off because executives previously planned for slumping business. Free! Sign-up here to receive Midday and Market Close e-newsletters! Create an alert for GM Add GM to my portfolio Discuss GM NEWS FOR GM GM to announce job cut plans Ford prepares to lay off thousands Tokyo stocks end higher led by banks More news for GM Quote & News Charts Financials Analysts Options SEC Filings Quote delayed 20 minutes. Disclaimer As a result, many of those sales helped clear out existing inventories at GM (GM: news, chart, profile), lowering them to more desirable levels. In turn, first-quarter production will rise compared with last year, Wagoner said, reiterating what the company recently said when it posted its December sales figures. In other industry developments, Ford Motor Co. is preparing a major restructuring to be announced Friday that could lead to as many as 20,000 job cuts, as the second-largest U.S. automaker struggles to turn a profit in 2002 amid declining margins and a weak economy. See full story. Who buys this year will depend in part on how U.S. consumers embrace the latest round of dealer incentives, with GM's latest move stealing headlines. At the end of GM's own discount finance program, the company said it would offer a $2,002 discount on its new vehicles. Rivals have yet to unveil their response. GM is in a strong position. The world's largest automaker is working to defend its strong truck and SUV line, key products in the vast U.S. market. Wagoner said the company is working hard to balance its current truck inventories with strong demand. It's also a category that's increasingly blurred by what the industry calls "crossover vehicles" -- autos that mix the utility of a traditional SUV with the size and efficiency of traditional wagons or sedans. Wagoner said flexible manufacturing is an essential part of matching production to emerging design trends. A risk remains, however, when it comes to marketing costs, which can climb when selling many different types of vehicles. He said that vehicle prices in the United States are as affordable as they've been in 20 to 30 years relative to current income levels. That too is helping drive sales during down times, Wagoner said. On Wall Street, shares of GM rose 52 cents to close at $50.61. August Cole is spot news editor at CBS.MarketWatch.com in Chicago

To: Dealer who wrote (45903)	1/8/2002 4:25:58 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 65232

Detroit aint seen nothing yet on layoffs wait until Japanese Yen is debased another 15% and Lexuses are available for $10k cheaper than US competitors I expect at least two more similar large scale layoff announcements from each of the US big three auto makers this is a consequence of the TSUNAMI of deflation i.e. huge price cutbacks and cashbacks watch Japan be reduced in the next few years to just another banana republic PacRim Tiger with a shitful currency and numbnut leadership this is what they get for refusing to bury dead banks instead of plowing them under, they nationally monetize those same huge set of banks the end result is a sharply lower currency, cheaper exported cars and electronic products THEY EXPORTED DEFLATION TO THE UNITED STATES it is called a Tsunami to be more accurate, it has lacked a single shock to qualify as a true tsunami it is more like a black hole with an inconceivably strong western wind pulling down prices worldwide we are talking about the 2nd biggest economy in the world that is, if you regard Europe as several economies the real TSUNAMI was the Sept11th attack and the immediate Federal Reserve money supply infusions just read that the infusion in one month exceeded the entire amount of currency in the US economy in 1965 !!! now that is a tsunami so the Japanese blackhole western wind will be meeting the US Fed money supply tsunami and it will lead to a battle all year long probably with no winner, just losers / jim