-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TX6/8m/FfvPnbXbB3iYWg1JBHW2V+DbAkLw3e0bKYnYNeEiecB33tXJQVjddhbWu Nk3xxrV2/5MQwhZTEWFqVQ== 0000040730-05-000099.txt : 20051122 0000040730-05-000099.hdr.sgml : 20051122 20051122132028 ACCESSION NUMBER: 0000040730-05-000099 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051118 ITEM INFORMATION: Cost Associated with Exit or Disposal Activities ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20051122 DATE AS OF CHANGE: 20051122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL MOTORS CORP CENTRAL INDEX KEY: 0000040730 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLES & PASSENGER CAR BODIES [3711] IRS NUMBER: 380572515 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00043 FILM NUMBER: 051220676 BUSINESS ADDRESS: STREET 1: 300 RENAISSANCE CTR STREET 2: MAIL CODE: 482-C34-D71 CITY: DETROIT STATE: MI ZIP: 48265-3000 BUSINESS PHONE: 3135565000 MAIL ADDRESS: STREET 1: 300 RENAISSANCE CTR STREET 2: MAIL CODE: 482-C34-D71 CITY: DETROIT STATE: MI ZIP: 48265-3000 8-K 1 grwrestructure112205.txt RESTRUCTURING OF GENERAL MOTORS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549-1004 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) November 18, 2005 GENERAL MOTORS CORPORATION -------------------------- (Exact Name of Registrant as Specified in its Charter) STATE OF DELAWARE 1-143 38-0572515 ----------------- ----- ---------- (State or other jurisdiction of (Commission (I.R.S. Employer Incorporation or Organization) File Number) Identification No.) 300 Renaissance Center, Detroit, Michigan 48265-3000 ----------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (313) 556-5000 -------------- ================================================================================ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) TABLE OF CONTENTS ----------------- Item 2.05 Costs Associated with Exit or Disposal Activities Item 7.01 Regulation FD Disclosure Signature Exhibit Index Exhibit 99.1 Press Release Exhibit 99.2 Fact Sheet Item 2.05. Costs Associated with Exit or Disposal Activities On November 18, 2005, General Motors ("GM") determined to implement a wide-ranging restructuring plan to effect a major capacity reduction of its manufacturing operations in the United States and Canada. This restructuring plan, announced on November 21, 2005, is part of a broader comprehensive four-point plan to return the company to profitability and long-term growth that was identified by the Corporation at its annual meeting in June of this year. The restructuring plan is described in more detail in Exhibit 99.1. GM anticipates that it will record charges for costs and expenses related to this restructuring plan in the current quarter and future periods, although the largest portion of the charges are expected to be estimated in the next several weeks and recorded during the fourth quarter of 2005. In this regard, GM expects to estimate and record charges in the fourth quarter of 2005 for the idling of a portion of the affected manufacturing workforce and for the impairment of facilities and equipment. Additional charges will be identified during the future periods as GM's ability to reasonably estimate the amount of such charges becomes possible. At this time the ultimate costs associated with this restructuring are not estimable. Upon making related determinations GM will amend this form to set forth such costs. Item 7.01. Regulation FD Disclosure A copy of the press release and the fact sheet presented to investors in connection with the announcement of the restructuring on November 21, 2005 are attached hereto as Exhibits 99.1 and 99.2 respectively, and are incorporated herein by reference. Exhibit Description Method of Filing - ---------------------------------------------------------------------- 99.1 Press Release Filed herewith 99.2 Fact Sheet Filed herewith # # # SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GENERAL MOTORS CORPORATION -------------------------- (Registrant) Date: November 22, 2005 By: /s/PETER R. BIBLE --- ----------------- (Peter R. Bible, Chief Accounting Officer) EX-99 2 grwex991112205.txt PRESS RELEASE ON RESTURUCTURING OF GENERAL MOTORS EXHIBIT 99.1 GM North America to Undergo Major Capacity Reduction Next Significant Step in GM's North American Turnaround Plan 9 Assembly, Stamping & Powertrain Facilities, 3 SPO Facilities to Cease Operations Total Reduction of 30,000 Positions Total Cost Reduction Running Rate of $7 Billion by End of 2006 DETROIT - General Motors will undergo a wide-ranging restructuring of its manufacturing operations in the United States and Canada as part of its comprehensive four-point plan to return the company to profitability and long-term growth, GM Chairman and CEO Rick Wagoner announced today. GM's next step in its North American turnaround plan addresses its ongoing capacity utilization, a major component of reducing structural cost. A total of nine assembly, stamping and powertrain facilities and three Service and Parts Operations facilities will cease operations. The additional actions will reduce GMNA assembly capacity by about 1 million units by the end of 2008, in addition to the previously implemented reduction of 1 million units between 2002 and 2005. Factoring in the additional capacity from GM's new Delta Township facility in Lansing, Mich., slated to begin production next year, the overall net result will be a GMNA assembly capacity of 4.2 million units. While down 30 percent since 2002, this capacity level will still provide GM plenty of flexibility to anticipate and meet market demand, but in a much more cost-effective manner. A total of 30,000 manufacturing positions will be eliminated from 2005 through 2008. "The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where they live and work," Wagoner added. "But these actions are necessary for GM to get its costs in line with our major global competitors. In short, they are an essential part of the plan to return our North American operations to profitability as soon as possible. "We continue to be equally committed to revenue drivers - introducing compelling new cars and trucks, and executing our revitalized sales and marketing strategy - - and we have received ratification of the agreement with the UAW, which will help significantly to address our health-care cost challenges," Wagoner said. "We are making steady and significant progress in implementing the plan to turn around our U.S. business." The following six assembly plant sites will be affected in the years indicated: o Oklahoma City, Okla., will cease production in early 2006. o Lansing, Mich., Craft Centre will cease production in mid-2006. o Spring Hill, Tenn., Plant/Line No. 1, will cease production at the end of 2006. o Doraville, Ga., will cease production at the end of its current products' lifecycle in 2008. o The third shift will be removed at Oshawa Car Plant No. 1, in Ontario, Canada, in the second half of 2006. Subsequently, Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008. o The third shift will be removed at Moraine, Ohio, during 2006, with timing to be based on market demand. Capacity-related actions affecting stamping, Service & Parts Operations and powertrain facilities include: o The Lansing, Mich., Metal Center will cease production in 2006. o The Pittsburgh, Pa., Metal Center will cease production in 2007. o The Parts Distribution Center in Portland, Ore., will cease operations in 2006; the Parts Distribution Center in St. Louis, Mo., will cease warehousing activities and will be converted to a collision center facility in 2006; the Parts Processing Center in Ypsilanti, Mich., will cease operations in 2007. One additional Parts Processing Center, to be announced at a later date, will also cease operations in 2007. o The competitiveness of all unitizing (packaging) operations at the Pontiac, Drayton Plains, and Ypsilanti Processing Centers in Michigan, as well as portions of the unitizing operations at the Flint, Mich., Processing Center will be evaluated in accordance with the provisions of the GM-UAW national agreement. o St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008. o The Flint, Mich., North 3800 engine facility ("Factory 36") will cease production in 2008. Given the demographics of GM's workforce, the company plans to achieve much of the job reduction via attrition and early retirement programs. GM will work with the leadership of its unions, as any early retirement program would need to be mutually agreed upon. GM hopes to reach an agreement on such a plan as soon as possible. "These are difficult moves that will affect thousands of dedicated GM employees and families, as well as state and local governments," Wagoner said. "We will work our hardest to mitigate that impact." There will be a significant restructuring charge in conjunction with this capacity announcement, and also with any related early retirement program. The details of these charges will be provided when available. Wagoner also said the company has further accelerated its efforts in structural cost reduction, raising the previously indicated $5 billion running rate cost reduction plan in North America to $6 billion by the end of 2006. In addition, GM continues to pursue its plans to target $1 billion in net material cost savings. In total, the plan is to achieve $7 billion of cost reductions on a running rate basis by the end of 2006 - $1 billion above the previously indicated target. "Our collective goal remains the same: to return our North American operations to sustained profitability as soon as possible, thereby helping to ensure a stronger General Motors for the future," Wagoner concluded. General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company's history. GM's global headquarters are at the GM Renaissance Center in Detroit. More information on GM can be found at www.gm.com. ### Forward-looking Statements In this press release and in related comments by General Motors management, our use of the words "expect, anticipate, design, estimate, forecast, initiative, objective, plan, goal, project, outlook, priorities, target, intend, evaluate, seek, impact" and similar expressions, including references to what the future implementation of our restructuring plan and the tentative health-care agreement with the UAW will achieve, and when, in terms of cost savings and capacity reduction, is intended to identify forward-looking statements. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors that are described in GM's most recent report on SEC Form 10-K, which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among others, the following: the ability of GM to realize production efficiencies, to achieve reductions in costs as a result of the restructuring and health-care cost reductions and to implement capital expenditures, all at the levels and times planned by management; the pace of product introductions; significant changes in the competitive environment; changes in laws, regulations and tax rates; the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and times planned by management; changes in relations with unions and employees/retirees and the legal interpretations of the agreements with those unions with regard to employees/retirees; shortages of and price increases for fuel; labor strikes or work stoppages; market acceptance of the corporation's new products; additional credit rating downgrades; and changes in economic conditions, commodity prices, currency exchange rates or political stability. EX-99 3 grwex992112205.txt FACT SHEET FOUR POINT TURNAROUND EXHIBIT 99.2 GM North America's Four Point Turnaround Plan Following is a brief update and summary of the other key elements of the GMNA turnaround plan beyond structural cost reductions. Health-care Cost Reductions On Oct. 17, GM announced a far-reaching agreement with the UAW that will introduce a series of changes to the hourly retiree health-care plan. As part of the agreement, pending court approval, active hourly employees will contribute financially to this health-care plan. As a result, GM will continue to provide competitive health-care benefits to its hourly employees and retirees, but at a significantly lower cost. The agreement is projected to reduce GM's retiree health-care liabilities by approximately 25 percent of the hourly liability, or about $15 billion, and cut the company's health-care expense by about $3 billion on an annualized, pre-tax basis. Annualized cash savings will be approximately $1 billion a year. Product Renaissance GM North America will continue with its aggressive product assault on all vehicle segments. To target key growth segments with the right products, GM earlier this year increased capital expenditures, with the vast majority of that increase going toward future car and truck programs. This increased investment will allow GM to average 15 all-new entries a year in the North American market for the foreseeable future. We remain committed to a diversified portfolio of hybrid cars and trucks, including hybrid versions of the Saturn VUE, Chevrolet Malibu, and the next generation of GM full-size pickups and SUVs. We also will continue to lead in the implementation of other fuel savings technologies, such as Displacement on Demand and six-speed transmissions. GMNA also will expand its offerings of ethanol-capable vehicles (E85 fuel). To help drive additional sales in the future, the product plan includes a heavy emphasis on high-growth segments, such as "crossovers," compact and luxury SUVs, large pickups and entry luxury cars. Starting in January, GM will begin rolling out more than a dozen all-new versions of its full-size SUVs for Chevrolet, GMC and Cadillac, to be followed in late 2007 with the availability of GM's advanced two-mode hybrid powertrain. In the same year, GM will begin rolling out an entire new lineup of full-size pickups, another segment in which GM is the industry leader. GM's strategy also builds on its recent move to create a single, global product development organization, which will permit the company to better leverage its considerable design and engineering resources around the globe. By taking full advantage of its unique global footprint and that of its global partners, GM will more effectively be able to address emerging trends and markets, and take advantage of its creative talent base around the world. Sales & Marketing GM also laid out a focused strategy designed to improve significantly the company's performance in the retail marketplace. This strategy includes strengthening GM's automotive brands, marketing that emphasizes the inherent value of GM cars and trucks, completing GM's distribution channel strategy, and aggressively targeting markets where GM has underperformed against the competition. GM's newest products continue to attract new customers. Chevrolet introduced two new cars this year that rank among the top 10 best-selling cars in the industry: the Impala and Cobalt. The Buick LaCrosse is conquesting sales at impressive rates with 24 percent of its customers citing Toyota, Honda and Nissan as second choice and 50 percent claiming a non-GM brand as a second choice. The Pontiac G6 retail sales in October were up 100 percent versus October 2004. And the HUMMER brand has posted the largest percent increase (up 86 percent in 2005) of any GM division, with the H3's successful launch. GM brands have focused more on consumer benefits in advertisements this year, moving away from the deal-only ads that focused largely on monthly payments. For instance, Chevrolet ads spend more time addressing segment-leading fuel economy, safety and product quality. The dealer-channel strategy is progressing well. There are over 200 Chevrolet dealers implementing the brand's image program. At HUMMER, over 70 percent of the dealerships will be consistent with that brand's image vision by the end of 2005. Cadillac has nearly 200 dealerships completed or in progress, representing 60 percent of the brand's sales, and nearly all Saab dealerships are consistent with that brand's image vision. By the end of 2005, 60 percent of Pontiac, Buick and GMC sales will be from combined dealerships. As part of the move toward emphasizing the value of GM cars and trucks, GMNA will continue to adjust suggested retail prices to more closely match actual transaction prices, manage inventories and resale values more closely, and focus strongly on improving retail sales. In addition, GM will specifically address certain regional markets in the United States in which GM's potential has not been fully realized. This more targeted approach to incentives, advertising, and promotion is expected to result in significant volume and share gains in these markets. ### -----END PRIVACY-ENHANCED MESSAGE-----