Automakers seek $14 Billion more vowing deep cuts
G.M. Motors and Chrysler are continuing to suffer from the company’s financial crisis and requesting for more aid from the federal government. “ The price tag for bailing out General Motors and Chrysler jumped by another 14 billion Tuesday, to $39 billion” said Bill Vlasic. The two companies have been receiving billions of dollars by the government since December, $17.4 billion in emergency assistance including $6.5 billion dollars. Both automakers are avoiding filing for bankruptcy because the cost of bankruptcy reorganization, with the government providing financing to help it through the process would be far greater than their latest loan request, said spokesmen of the car companies. Even though both companies are losing hundred of dollars each month bankruptcy is out of the question. G.M is pushing for restructuring plans to help reduce dept. According to Rick Wagnoer, G.M’S chief executive said they company is expected to begin paying back their federal loans by 2012.
G.M will cut 47,000 more of its 244,000 workers world wide, close five more plants in North America leaving it with 33; and cut its line up of brands in half to just four: Chevrolet, Cadillac, GMC, and Buick. Chrysler will cut 3,000 jobs and discontinue three of their models: Dodge Durango, P.T Cruiser, and Chrysler Aspen, said Robert L.Nardeli, Chairman of Chrysler.
This article is newsworthy in timeliness because G.M motors have been updating the media on its financial situation and how it’s going to affect the company and their employees. For the past weeks G.M has been featured in the New York Times and will continue to be featured to give updates on their restructuring plan. The Second reason is its significance and human interest in that fact that there are thousands of people working for these companies who will be affected by the job cuts of G.M and Chrysler. This article will attract those who work for the auto industry even those who don’t work for G.M and Chrysler. The third is the proximity G.M and Chrysler are nationwide companies because there are American
http://www.nytimes.com/2009/02/18/business/18auto.html?_r=1&scp=1&sq=Automakers%20seek%20%2414%20billion%20more%20vowing%20deep%20cuts&st=cse
Subscribe to:
Post Comments (Atom)
To your list of news values, add prominence (GM is well known) and conflict (there's a lot of debate and controversy over the proposed bailout).
ReplyDeleteThe company refers to itself as "GM" (no period).
...another $14 billion (add the $ sign)
...$6.5 billion ( delete "dollars" - redundant)
8.5/10