Cutting Jobs, Closing Plants

Running out of options and running out of time. AP (11.21.05):

"General Motors Corp. will eliminate 30,000 jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand and position the world's biggest automaker to start making money again after absorbing nearly $4 billion in losses so far this year. The announcement Monday by Rick Wagoner, GM's chairman and CEO, represents 5,000 more job cuts than the 25,000 that the automaker had previously indicated it planned to cut." GM to Cut 30,000 Jobs, Close 9 Plants

"The 30,000 job cuts represents about 9 percent of GM's global work force of about 325,000 people." Once upon a time, back in the 'mid-70s, GM "employed more than 600,000 Americans." Bloomberg says they're closing twelve facilities (11.21.05):

"GM's U.S. sales fell 26 percent in October, and the automaker this month returned to rebates as high as $12,000 on some sport-utility vehicles to regain buyers. GM's U.S. market share, which peaked at 51 percent in 1962, fell to 26 percent in the first 10 months of this year." General Motors to Close 12 North American Locations

GM's market share hasn't been this low since 1925. As in eighty years ago. In the meantime, Toyota is opening "a factory for Tundra pickups in San Antonio next year and a plant for the RAV4 sport-utility vehicle in Woodstock, Ontario, in 2008." It's also saying it "plans to take 15 percent of the global auto market in the next decade, rising from about 12 percent now." We're not inclined to doubt them, either.