Mexican Media Brands
GM Says Fixing Opel Would Buoy Slumping Shares
CEO Dan Akerson blames General Motors Co.'s sinking stock price on the company's losses in Europe, its huge global pension liabilities and investor concerns about Europe's economy.
#economics
Share
CEO Dan Akerson blames General Motors Co.'s sinking stock price on the company's losses in Europe, its huge global pension liabilities and investor concerns about Europe's economy.
At GM's annual meeting on Tuesday, shareholders griped to Akerson about the stock's 33% plunge to $22 per share since its initial public offering in November 2010.
"First and foremost, we have to fix Europe," Akerson told the investors. GM's money-losing Adam Opel unit is expected to present a restructuring plan to its board late this month. GM is in "constructive" talks with Opel's labor unions about cutting costs, according to Akerson. He says the company hopes to reach an agreement with them soon.
Early this month, GM attacked another drag on its stock price by launching a plan to shrink by about $26 billion its bloated pension obligations to 118,000 U.S. salaried retirees. The company will buy a group annuity from Prudential Insurance Co. of America to cover those pensions. Salaried retirees can choose a lump-sum buyout of their pension or regular monthly payments from the annuity.
Akerson says GM is considering a similar plan for its 400,000 U.S. hourly workers.
RELATED CONTENT
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.