Update:General Motors today issued a statement denying the Wall Street Journal's reports of more possible brand and salaried job cuts. The troubled automaker has seen sales plummet over the past several months as oil prices reach record highs, its large SUV and pickup-heavy lineup unsuited to the new efficiency-focused market. While Hummer remains under evaluation, the carmaker has nonetheless stated outright that no other brands are on the chopping block.
The denial, reported by Automotive News, quotes company spokesman Tony Cervone as saying in an email that "No other GM brand (besides Hummer) is under strategic review." The flatness of the denial seems odd given the Wall Street Journal's apparently close source, but it nonetheless stands as the authoritative answer to the matter. It's worth noting, however, that the job cuts also mentioned in the earlier report were not denied by GM, so August may see another round of lay offs, possibly higher up the corporate hierarchy than those previously announced, including salary workers in addition to hourly laborers.
Original: General Motors may have much more drastic changes planned than first let on during the reveal of its North American restructuring plan last month. Latest reports indicate GM could axe thousands of white-collar jobs and either sell-off more of its brands or drop them altogether.
During the announcement of the restructuring plan last month, GM CEO Rick Wagoner confirmed there would be a number of production cuts and possibly some job layoffs. The Wall Street Journal, citing people familiar with the matter, is now reporting that GM's board of directors will make an announcement about fulltime salary job cuts in early August, and may also disclose options for raising additional cash including either selling or cutting more brands.
GM is already conducting a review of the Hummer brand, but the Buick, Saturn and Saab brands are all struggling to attract buyers and return profits, and one of these could be next in line to be cut.
The moves are part of GM’s strategy to raise funds amidst a period of rising fuel and material costs and a worsening economy. Credit providers have downgraded GM’s rating in the past month and last week investment bank Merrill Lynch stated that bankruptcy was still a possibility for GM.