General Motors has announced that they will be releases its third-quarter financial results on Friday. If this isn’t big enough news, GM has also indicated that they will also be announcing “import changes” to their business operations.
It’s no surprise that the economy and domestic auto sales have both placed a strain on GM’s automotive operations. In light of these changes, GM is hinting at big changes to curb the adverse effects of a credit crunch and slowing auto sales.
General Motors and other “Big Three” automakers have already made cuts to jobs and vehicle production, especially among truck and SUV manufacturing facilities. But Detroit Chevrolet dealers and others eagerly await changes within GM that will make the automaker more competitive.
A large concern among automakers and other automotive analysts is that the US government work to ensure the automotive industry doesn’t fail. In the wake of the worst downturn in about 50 years, the Durango CO Chevy dealers and the industry as a whole is eagerly anticipating changes in operations to improve sales and keep American automakers afloat without making the industry sink further and deeper into financial peril.
GM and Chrysler have both been in discussions to see how each could benefit from one another, either from GM buying pieces of Chrysler or a merger between the two. As discussions continue, analysts claim that GM is burning through about $1 billion per month. If trends continue, Chrysler may find itself in bankruptcy by next year, with GM reaching minimum cash levels around the same time.
Amid talks with Chrysler, GM has lobbied the Bush administration to provide the automaker with $10 billion to help maintain operations and finance a deal with Chrysler. The automaker would also be able to shut down redundant operations among Chrysler’s operations and better integrate two automakers’ brands.
Without federal funding, the auto industry may find it in a dire situation, fears Birmingham Buick dealers and others, more so than they are already in. As such, the industry awaits big news from GM this Friday, which many expect to have less than positive financial results regardless.
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