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Filed under: Hirings/Firings , GM , Earnings/Financials Considering the sorry state of financial affairs that GM appears to be in, it seems extremely unsurprising that the board would like to see some big changes made at the very top of the company. What is a little shocking, though, is just how soundly the specific proposals were rejected . For instance, a proposal sponsored by John Chevedden of Redondo Beach, California, which would have given shareholders an annual advisory vote on executive compensation and pay, found less than 38-percent of voters in support. Another proposal which was soundly defeated would have tied executive stock options and awards with company performance. Still, there were some vocal company detractors present at the annual shareholders meeting, such as Mary Ann Wiley from Seattle, Washington. She told GM CEO Rick Wagoner, "If the company does not do well, management should take an equal hit, and I don't think they've taken an equal hit." Wagoner's...
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Filed under: Hirings/Firings , Ford , Earnings/Financials The auto industry's putrid performance in May was an eye opener, and companies like Ford now have to readjust the adjustments they just made to their turnaround plans. Ford VP Jim Farley already braced his white-collar work force for a possible 12% reduction in their ranks, but a memo emailed today by Mark Fields, Ford's President of the Americas, reveals that the number of white-collar workers "reduced" will actually be 15%. Fields says in his memo (full transcript posted after the jump) that the company will "reduce salaried-related costs in North America by 15 percent by Aug. 1," which you, me and the guy who sits in the cubicle right under the AC vent know doesn't mean just cutting back on coffee filters. The reductions will come from a series of steps that should ruin the day for lots of Ford employees wearing a tie or pants suit right now. They include "involuntary separations" (i.e...
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Filed under: Hirings/Firings , Suzuki , Earnings/Financials Suzuki's sales in the United States have been at historically high levels the last two years. Both 2006 and 2007 saw American Suzuki Motor Corporation move more than 100,000 units - a big feat for a little brand in the U.S during these tough economic times. Despite that seemingly good news, Rick Suzuki, president of ASMC, has called the performance dismal and is stepping down in an act of seppuku . The record performance is looked upon so unfavorably because it falls far short of goals laid out by Suzuki in 2003 as part of a five-year plan to eventually sell 200,000 automobiles. Financially, ASMC is taking losses, so Suzuki has put into place a buyout plan that is expected to aid in trimming 55 jobs out of its 674-strong U.S. workforce. Employees who do stay on can expect no bonus or raise this year. Perhaps Suzuki was caught up in irrational exuberance back in 2003 and set some overly-ambitious targets. Its automotive product...
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Filed under: Motorsports , Hirings/Firings , Mercedes Benz , Earnings/Financials , Ferrari , FIAT 'You don't get the money, but you do get to decide where it goes.' That's pretty much the gist of the statement which the FIA, Formula One's governing body, made to Ferrari regarding the funds accrued from the penalty imposed on rival team McLaren last year when it was deemed guilty of espionage . Although Ferrari got a mysteriously identical $100m payment last year, those funds came from Bernie Ecclestone's Formula One Management and not from Max Mosley's FIA, which imposed the fine. That cash was never meant for Ferrari to receive, but it is now being reported that two leading Ferrari figureheads will form part of the ad-hoc committee responsible for allocating $30 million of the funds. Michael Schumacher and Jean Todt , who despite having both left their positions at Ferrari remain inexorably connected to the team, will join McLaren-Mercedes' Norbert Haug...
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Filed under: Hirings/Firings , Ford , Earnings/Financials , UAW/Unions Barely over a year ago, Ford paid out cash bonuses to its employees and recently hinted that they'd do the same this year. Today, an email sent to Ford employees confirmed the bonuses, which will be $1,000 for hourly UAW workers, with significantly larger bonuses based on pay grade going to salaried employees. Before Alan Mulally came to Dearborn, workers at Ford would not have been eligible for any extra income, as the old bonus plan was based on a profit-sharing system. Profit is not something that Ford has seen in a while, losing some $2.7 billion last year. According to Mulally, the number three automaker in the U.S. "made significant progress on our plan transform Ford Motor Co. into a lean global enterprise poised to become profitable again in 2009." To recognize the efforts of each employee towards the larger goal of regaining profitability, Ford workers should expect their bonuses on March 13. Not...
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Filed under: Motorsports , Hirings/Firings , Earnings/Financials Back in the 2005 and 2006 Formula One seasons, Fernando Alonso thoroughly trounced Michael Schumacher for the title. Since then, however, Alonso hasn't beaten many of Schumacher's records, but the two-time champion can now rest easy - in a big, solid gold chair - knowing that he's finally making more than Schumi . Although finances in F1, as we've reported before, are secrets as closely guarded as technical breakthroughs, reports now indicate that Alonso's deal to return to Renault has made him the most highly-paid driver in or out of F1. If the reports are to be believed, Alonso will make $46 million this season. That's only from his contract with Renault and does not include assuredly lucrative sponsorship deals , and only stands if Alonso stays for a second year. The amount is a symbolic $1 million more than what arch-rival Kimi Raikkonen reportedly makes at Ferrari and more than double what his...
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Filed under: Hirings/Firings , GM , Earnings/Financials , UAW/Unions Let's get the hard numbers out of the way. Today General Motors revealed that excluding special items, it posted a net loss of $23 million in 2007. Add in some funky deferred tax asset charge , and the automaker's net loss last year rises to $38.3 billion. Aside from that, we're interested in how GM fared in the business of selling cars and trucks around the world last year. In 2007, the automaker earned $553 million before taxes selling vehicles globally, compared to losing $339 million in 2006. Worldwide vehicles sales increased 3% to 9.4 million vehicles last year, but the North American market was no help, losing $1.5 billion before taxes. Numbers aside, GM also had some big news today in the form of new buyouts for its entire union workforce that's some 74,000 strong. Similar to the recent round of new buyouts offered by Ford and Chrysler to their union workers, the new arrangement is more generous...
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Filed under: Motorsports , Hirings/Firings , Earnings/Financials Every year the driver who wins the Atlantic Series gets a $2 million grant earmarked towards moving up to the Champ Car World Series. Critics say it's not enough to secure a ride in the competitive racing class, but who's going to turn down a multi-million-dollar purse? Raphael Matos, that's who. The cash-strapped Brazilian driver needs the green to continue racing, but rather than take the money and run , as Steve Miller would advise, Matos is instead moving over next season to the Indy Pro Series, Atlantic's equivalent in the competing IRL framework. Andretti Green Racing is giving him a ride as a stepping-stone to the full-fat IndyCar Series for 2009. Matos may continue to drive for Team Brazil in A1GP, as well. While the snubbed officials at Champ Car try to figure out what to do with Matos' prize money - it could go to runner-up Franck Perera - they've also got to find a replacement for Executive...
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Filed under: Hirings/Firings , Plants/Manufacturing , GM , Earnings/Financials , UAW/Unions General Motors held a conference with analysts today in which it outlined the automaker's turnaround progress and plans for 2008, the result of which is a press release (after the jump) that is the most boring piece of literature ever to be read. We tried, and were comatose by the first set of bullet points. Those who soldiered on, however, discovered that GM's cost-cutting plans for 2008 include offering worker buyouts to 46,000 eligible employees and potentially closing more facilities. Follow the jump for the skinny on the details, as well as the official snooze-inducing press release from GM. [Source: GM, The Detroit News] Continue reading GM offering more worker buyouts, could close more plants in 2008 Read | Permalink | Email this | Comments
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Filed under: Euro , Government/Legal , Hirings/Firings , Plants/Manufacturing , Earnings/Financials Only days before heading to bankruptcy court, Italian engineering firm and carrozzeria Bertone revealed that it was about to pull a last-minute trick out of its sleeve in an announcement later that day . But when the announcement didn't come, the industry was left wondering if, after 95 years in business, Bertone was about to slip away. The company's chairwoman and family scion Lili Bertone, however, announced last night that her company would be sold to Gruppo Prototipo chief Domenico Reviglio. Likewise based in Turin, Gruppo Prototipo focuses on testing pre-production vehicle prototypes. It owns the famous Nardo high-speed test facility , and since the late '90s has been the sub-contractor for most of the Fiat Group's testing requirements. The announcement came as a surprise to the Italian business community, which widely believed negotiations with business mogul Gianmario...
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Filed under: Euro , Government/Legal , Hirings/Firings , Plants/Manufacturing , Earnings/Financials Bertone has landed in some very hot water and is facing Italian bankruptcy court within a week. The courts in Turin seem to think that the best thing for the company's 1,300 employees would be for it to shut down and go into bankruptcy protection. But before it draws its last breath, the famous Italian carrozzeria has one last trick up its sleeve, which is expected to be revealed later today. The coachbuilder has long since evolved from being the small design house it once was into a major manufacturing facility, with capacity to produce 70,000 cars each year. But in order to break even, it needs to build at least 30,000 per year. It was building a special-edition MINI, but that ended over a year ago, and production of the Astra convertible ended two years ago. Over the last three years, according to reports, Bertone has lost €37.3 million ($55.4 million). Industry insiders are speculating...
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