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Week of 6.23.06
Timeline: GM's JourneyThis Week:
The Final Offer |
Timeline: GM's Journey |
Perspectives: GM Employees Speak Out |
What Went Wrong at GM |
Q&A: Is a Benefits Crisis Looming? |
The Ins and Outs of Buyouts
1908General Motors is formed in Flint, Michigan with the acquisition of Buick, Cadillac, Oakland (Pontiac), and Oldsmobile.
GM becomes the largest producer of vehicles in the world. 1940 GM celebrates its 25-millionth car, producing about 40 percent of all cars in the U.S. 1942 GM converts 100 percent of its production to the war effort. During World War II, the company produces airplanes and airplane parts, trucks, tanks, guns, shells and other war-related products. According to GM, it delivers more than $12.3 billion worth of war material to lead the Allied war effort. 1950s - 1960s After the war ends, GM continues to grow with the American economy and holds a 40 to 50 percent market share of the U.S. automobile sector. 1967 GM celebrates the production of its 100 millionth U.S.-made car. 1970 All vehicle production stops in the U.S. when United Autoworkers stage a 10-week strike.
The Arab oil embargo and ensuing gasoline price increases lead to a rapid rise in sales of small Japanese-built cars in the U.S. 1974 Facing increasing competition from Japan, GM proceeds with plans for an unprecedented downsizing. 1980 The world's largest automaker suffers its first corporate financial loss since 1920. 1983 GM observes its 75th anniversary. More than 235 million vehicles worldwide have been produced since the company's incorporation. 1984 The Saturn division opens, using automated plants to produce sub-compact cars to compete with Japanese imports. 1991 GM announces plans to idle 21 U.S. and Canadian assembly and manufacturing facilities over the next four years in the face of financial losses. The company aims to reduce the number of hourly and salaried employees by 74,000 as part of a program to restore profitability.
After GM's massive lay-offs hit Flint, Michigan, workers at the company's parts factory stage a strike. The strike quickly spreads to 179,000 workers at 25 assembly plants and more than 100 parts plants across the United States, Canada and Mexico. It lasts seven weeks. 2005 GM posts a massive $10.6 billion loss for the year despite the fact that it sells over nine million GM cars and trucks globally. Analysts cite high labor costs as one of the key reasons for the company's profitability woes. Its debt is downgraded to junk bond status. The same year, Toyota emerges as the world's most profitable automaker. March 2006 GM announces one of the largest buyout programs ever. The plan, negotiated with the United Auto Workers union, is to offer over 100,000 employees an incentive to leave their jobs in an effort to cut crippling labor costs. GM says it is aims to cut 30,000 jobs by 2008. June 23, 2006 Deadline for GM workers to decide whether to retire with a financial package - between $35,000 and $140,000 - or stick with their jobs. According to the United Auto Workers union, some 25,000 workers had signed up to the deal as of June 15. |
Interview: David Sirota
Electric Car Dreams
PBS Special Report: Health Care Reform
Water World
Nurses Needed
