SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) November 27, 2002
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GENERAL MOTORS CORPORATION
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
300 Renaissance Center, Detroit, Michigan 48265-3000
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
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ITEM 5. OTHER EVENTS
On November 27, 2002, a news release was issued by Saab Automobile AB
presenting details of its ambitious efficiency program. The release is as
follows:
Saab Automobile Presents Ambitious Efficiency Program
- 20% Productivity Improvement in Manufacturing
- Maximising Efficiency in Engineering
- Restructuring of Sales/Marketing Area
- Overall Employment Reduction of 1,300 People
- Continuing Product Offensive to Drive Growth
- Increased Leveraging of GM Capability
Trollhattan. Saab Automobile today presented details of its ambitious efficiency
program. Due to start-up costs of the new 9-3, investments in the upgrading of
the Trollhattan plant, a significantly deteriorated USD / SEK exchange rate and
a variety of other factors, Saab Automobile filed a loss of 1.2 bio SEK for the
first half of 2002. The aggressive efficiency program presented today aims at
enabling the company to substantially improve the financial situation beginning
in 2003.
In view of the deteriorating financial results, and following the successful
launch of the Saab 9-3 Sport Sedan, the company is now focusing on increasing
efficiency in all areas of the business.
The action plan has the following main elements:
Due to substantial process and efficiency improvements, the required 9-5 volume
can now be produced on a single shift at the manufacturing plant in Trollhattan.
This change will be implemented next year. In addition, the plant will be
re-tooled during next year to enable the subsequent build of both Saab 9-3 and
9-5 models on the same line. Those changes, as well as other activities to
further increase quality and improve productivity, will lead to an efficiency
improvement of 20%. This change will be based on GM's GMS (Global Manufacturing
System) principles, which have dramatically and systematically improved both
quality and productivity in those plants where it has been implemented so far.
In total, these activities will result in an employment level reduction of some
800 people.
Saab's engineering organization will be significantly streamlined by creating a
structure that allows it to maximize synergies in the engineering area with
General Motors, its subsidiaries and alliance partners. Saab will continue to
develop the unique brand characteristics that have allowed the 9-5 and 9-3 to
become successful, but at the same time will more fully utilize the significant
potential that exists in working with common processes and sharing resources in
different areas.
In view of this, the engineering organization will initially be reduced by some
450 employees.
The organization and structure of the Sales/Marketing function will change
significantly. Mikael Eliasson, Vice President, Sales & Marketing since 2000,
has elected to pursue other career opportunities and will leave the company
effective January 1, 2003. As announced earlier, Saab Chairman, President and
Chief Executive Officer, Peter Augustsson, will focus more of his immediate
attention on growth initiatives and on Sales/Marketing activities. Consequently,
responsibilities in this area will be divided between three senior executives,
all reporting directly to Peter Augustsson:
- Jan-Ake Jonsson, currently Executive Director & Lead VLE, Commercial Vehicles
for GM Europe has been appointed Saab Vice President Sales & Marketing,
Europe and Asia-Pacific, effective January 1, 2003.
- Debra Kelly-Ennis, who has been President of Saab Cars USA since October
2002, will continue in that capacity.
- Knut Simonsson, will also continue in his current capacity as Director,
Global Brand Management.
The new Sales & Marketing leadership will focus on increasing sales volumes
based on the upcoming broadened product portfolio led by the recently launched
9-3 Sport Sedan, as well as on making the Sales/Marketing organization more
efficient overall. Costs will be reduced through better utilization of synergies
with GM and its units, both at the headquarters level and in the national sales
companies.
Within Sales/Marketing centrally in Sweden, as well as in general
administration, Saab plans to reduce costs by 20% and employment levels by some
50 people in 2003, as a result of an efficiency program which includes best
practices and learnings from Saab's parent and sister companies.
In the Purchasing area, a concerted effort will be made to establish cost
reduction teams, consisting of engineers, purchasing employees and supplier
representatives, in order to involve suppliers early in the development phase of
certain components. This proven concept will speed up the development process
and lead to significant material cost savings.
Saab's plan will result in significant efficiency gains and in an overall
employment level reduction of some 1300 jobs. On top of that, the rigid
execution of Saab's upcoming new model launches and the new initiatives in the
Sales/Marketing area are expected to significantly increase revenues.
Commenting on the efficiency program, Peter Augustsson said: "This year Saab
simply had to focus all of its energy on successfully launching our new 9-3
Sport Sedan. With our very strong brand, exceptionally high quality levels, and
our planned product portfolio expansion, we must now turn to drastically
improving efficiency in all areas of the business. The recent establishment of a
Chief Operating Officer function, held by Greg Deveson, allows me to spend more
of my time on growing the business and in the Sales/Marketing area. Mikael
Eliasson has been instrumental in sharpening the Saab brand, initiating an
upgrade of our dealer network, and in many other areas. As he is now moving on
in his career, I wish him all the best. With Debra Kelly-Ennis and Jan-Ake
Jonsson in their new positions working closely with Knut Simonsson's Brand
Management area, we will now take the next step to become even more aggressive
in our sales efforts."
"With its product offensive, Saab has been laying the foundation for becoming a
much stronger player in the market. In view of the aggressive action plan to
improve Saab's efficiency and to increase its volume and revenue base, we are
confident that the company is now on the right track. Saab plays a key role in
GM's brand portfolio and has full access to GM's capabilities", added GM Europe
President Michael J. Burns.
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SIGNATURE
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
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(Registrant)
Date November 27, 2002
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By
/s/Peter R. Bible
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(Peter R. Bible,
Chief Accounting Officer)
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