Apr 24, 2009 -
Ouija Think Now?
While doing some information gathering for financial planning for my Mom, I came across a curious letter. She was a GM shareholder and got a letter from Rick Wagoner last July that I thought I would share with the class.
July 15, 2008
Dear Stockholder,
I am writing to you to tell you about significant actions announced today in response to the worsening economic and automotive market conditions we are experiencing in the U.S. The action with the most direct impact on our stockholders is the decision to suspend dividends on GM common stock, effective immediately.
The dividend decision is part of a series of actions to further reduce our structural cost and strengthen out liquidity position. Additional incentives announced today include:
Further reductions in truck capacity, and related component, stamping and powertrain capacity
Reducing and consolidating U.S. sales and marketing budgets
Reducing U.S. and Canadian salaried personnel costs
Beginning in 2009, eliminating healthcare coverage for U.S. salaried retirees over 65, offset partially by a pension increase
Limiting our corporate capital expenditures
Improving working capital in North America and Europe, primarily through lower inventories
Deferring cash payments related to our 2007 health care agreement with our major union
Assessing global assets for potential monetization or sales, including the previously announced strategic analysis of HUMMER
Accessing global markets for capital on an opportunistic basis
For further details, please go to GM's web site at http://investor.gm.com and click on "Investor News Releases."
These are indeed challenging times, but GM is responding with aggressive actions to position the company to withstand the U.S. market downturn and emerge stronger.
We have a solid position in the rapidly growing emerging markets around the globe, a commitment to technology leadership, and an ever stronger and more competitive product line-up.
Our actions over the past several years, and today, position us not only to survive this tough period, but to come out of it as a lean, strong, and successful company. Thank you for your ongoing support as we continue to create the new General Motors.
Sincerely,
Rick Wagoner
Given that Wagoner is longer with GM, I'm not so certain he has a future as a fortune teller.
