GM in trouble
General Motors has been facing some major issues this past year. The outrageous gas prices killed its forcasts on sales of trucks and SUVs. This was unfortunate due to how much money GM had put into these two lines recently. However this is not necessarily the company's biggest concern. GM is trying to rewrite its health care benefits. According to a new plan, GM would be able to cut $3 billion a year (pretax) for hourly retirees. This would result in an annual savings of $1 billion/year. This would be extremely beneficial and may even assist in saving the "life" of GM considering the $1.3 billion lost in the past quarter. To top off the company's struggles, its stock hit a 23-year low last week at $22.74/share. When facing such issues, I believe it to be of great importance to bring in economists and have them do studies which will assist in the decision making process. Accountants and financial workers will know what needs to happen concerning the financial side, but an economist can help the company see consumer trends which will point the company in the right direction concerning the production of a product that will sell.
Posted by Connor at 11/13/2005 06:12:00 PM