GM cuts unnecessary spending after Japan disaster

[Omaha Steve]

Source: AP

By JANNA HERRON

NEW YORK (AP) - GM said Saturday it is cutting unnecessary spending companywide as it assesses the impact of production disruptions from the earthquake and tsunami in Japan.

The move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan, a company spokesman said. The cost-cutting effort, which includes travel, took effect last week and will be in place for an undetermined period.

The news follows General Motors Co (GM)rp.'s announcement Friday that two of three shifts will be canceled at a plant in Eisenach, Germany on Monday and Tuesday. Another plant in Zaragoza, Spain will remain closed Monday. The plants produce the Corsa compact car.

In the U.S., GM said Thursday it will halt production at its pickup plant in Shreveport, Louisiana, next week.


Read more: http://apnews.excite.com/article/20110319/D9M2H2IG1.html

[aquart]

1. Because you want to stop production at your functioning factories.

[BumRushDaShow]

2. Start making your own damn parts. n/t

[freshwest]

5. Sounds like a winner to me.

[Historic NY]

3. Previously it was reported they have enough parts on hand...

to fullfill customer orders and will resume when the Japanese plants resume production. Cutting shifts is a way to conserve resources and still keep some people working. Apparently people fail to recognize just how global auto production is, from China to Poland and beyond.

[BumRushDaShow]

4. I agree but

here is the opportunity to create jobs right here. This is a perfect example of "single point of failure" with no contingency.

[wordpix]

6. how about bringing those jobs HOME, GM? Oh, I forgot, $50 billion doesn't buy many US jobs

remember the $50 billion bailout?

http://online.wsj.com/article/SB10001424052748704803604576078501503246420.html

[Rage for Order]

7. If the spending was unnecessary why were they doing it in the first place?

It shouldn't take an earthquake to eliminate wasteful spending. Apparently the management at GM are idiots.

[Ringo-san]

8. First thing that struck me too. Unnecessary spending was fine before the tsunami? nt