Detroit, Michigan – General Motors has provided an update on the restructuring efforts included in the viability plan it submitted to the U.S. federal government in December. The company announced more conservative industry volume planning assumptions.
The updates were part of a comprehensive review presented at the Deutsche Bank 2009 Auto Analysts Conference in Detroit, which focused on the global financial, operational and product portfolio actions GM is taking to restructure its business for long-term viability.
GM is now assuming total 2009 U.S. vehicle sales of 10.5 million units, and global sales of 57.5 million units. The initial plan assumed a baseline of 12 million units, with 10.5 million as a downside scenario.
“We are on track to accomplish the requirements of the viability plan,” said GM CEO and chairman Rick Wagoner. “We know we have a lot of work in front of us, but we are already working closely with many key stakeholders. The GM team is 100 per cent dedicated to achieving the goals of our plan.”
The company said that lowering the assumptions will drive tougher operational decisions, leading to a more robust viability plan that better positions the company for long-term growth as the auto market recovers.