GM is planning to cut thousands of white-collar jobs and is considering whether it should sell or stop production of more of its brands according to a report in The Wall Street Journal.
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Sources told the newspaper that such moves are part of a broader re-evaluation of the company’s strategy and of its ability to meet an internal projection of returning to profitability in 2010.
The re-evaluation follows a sharp downturn in vehicle sales this year in the US on a weaker economy and much higher gasoline prices. While the US market downturn is impacting all automakers, the US Big Three are especially vulnerable due to their weak financial positions and high reliance on truck sales.
The job cuts are likely to be approved when GM’s board of directors meets in early August, the sources told the newspaper. The reductions would be in addition to earlier announced cuts.
Management may also present the board with options for raising additional cash.
The board may also hear management’s latest thoughts on whether GM should trim the number of brands it offers in the United States, the report said.
All but the Cadillac and Chevrolet brands, which GM considers core to its business, are undergoing close scrutiny, some other people told the paper.
GM has already put its Hummer brand up for sale to prospective buyers thought to include Mahindra & Mahindra.
