NEWS
3A
TUESDAY, NOVEMBER 22. 2005
Plant closings on the horizon
GM plans to cut 30,000 jobs
BY DEE-ANN DURBIN THE ASSOCIATED PRESS
DETROIT — In the past few weeks, General Motors Corp. has been facing a near constant drumbeat of negative news and bankruptcy whispers, putting chairman and CEO Rick Wagoner under considerable pressure to speed up his turnaround plan.
Wagner sent employees a memo last week, assuring them that bankruptcy isn't on the radar at the world's largest automaker. He took further action Monday, saying the company plans to cut 50,000 hourly jobs and close 12 facilities by 2008.
The announcement had been planned for next month, but the timetable was accelerated as GM shares plunged to their lowest level in 18 years.
Still, investors weren't satisfied. GM shares fell 47 cents, or nearly 2 percent, to close at $23.58 Monday on the New York Stock Exchange. They have traded in a 52-week range of $20.60 to $40.82.
Wagoner was resolute, saying he continues to have board members' confidence and hasn't considered stepping down.
Charlie Riedel/THE ASSOCIATED PRESS
"I have given no thought to anything but turning the business around," Wagoner said. "I wasn't brought up to run and hide when things get tough."
But the reaction of some analysts suggested that the drumbeat will continue.
Merrill Lynch analyst John Casesa said GM's plan left many questions unanswered, including what the company would do about its growing retiree burden. The automaker now has 2.5 retirees for every active worker.
the key reason that GM cannot shrink to a competitive size; that is unless the current labor agreement is drastically revised", "Casera wrote in a note to investors
"At some point this becomes an untenable situation and is
It's unclear how much help GM can count on from its unions. The United Auto Workers called GM's plan "devastating" and warned it would make negotiations more difficult.
To get production in line with demand, GM will cut 30,000 jobs, which represent 17 percent of GM's North American hourly and salaried work force of 173,000, and close nine assembly, stamping and powertrain plants and three parts facilities.
GM's U.S. market share fell to 26.2 percent in the first 10 months of this year compared with 33 percent a decade ago, the result of increasing competition from Asian rivals.
GM lost almost $4 billion in the first nine months of this year.
"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," Wagoner said. "But these actions are necessary for GM to get its costs in line with our major global competitors."
GM isn't the only U.S. automaker cutting costs. Last week, Ford Motor Co. told employees it planned to eliminate about 4,000 white-collar jobs in North America early next year as part of a restructuring plan.
GM said the plant closings were part of a plan to shave $7 billion off its $42 billion annual bill for operations by the end of next year. That includes a $3 billion cut in health care costs, $1.5 billion in manufacturing cuts and $1 billion in savings on materials.
Against the grain
Dozens of tiny grains of the Ethiopian crop known as teff stick to Gary Alexander's fingertip as Alexander harvested a test plot on his farm near Nicodemus on Thursday. Alexander and a handful of other farmers around the historical black settlement have been experimenting with the crop to market it as an alternative to wheat for people with gluten sensitivity.
CAMPUS
University plans hospital addition
THE UNIVERSITY DAILY KANSAN CORRECTION
The University of Kansas Hospital had the highest number of patient visits in its recorded history for the third consecutive year, according to its fiscal year 2005 annual report.
The center will cost $77 million, will be 238,000 square feet and will include a new expanded emergency department and an outpatient cancer facility. Another plus for the hospital is that its patient satisfaction scores rose to the top 8 percent nationally among teaching hospitals, Irene Cumming, president of the hospital, said.
The hospital operated at capacity for most of the year, so to keep increasing the number of patients, the hospital plans to expand with the opening of the Center for Advanced Heart Care. The new center will be built in the former World
Headquarters of Sprint, which the hospital purchased over the summer.
Cumming said the hospital was pleased with the progress it has made in the past seven years. — Travis Robinett
♦Monday'sThe University Daily Kansan contained an error. In the article, "Students witness riots," Ann Marie Harris Jenks, Okla., junior, was incorrectly identified.
CORRECTION
ON THE RECORD
A 20-year-old KU student reported to Lawrence police a theft or a Ford Ranger and an iPod between 2 and 5:30 p.m. Saturday from the 1100 block of Tennessee Street. The truck is valued at $4,000.The iPod is valued at $200.
A 20-year-old KU student reported to Lawrence police damage to a Lexus between 6:30 p.m. Saturday and 3 a.m. Sunday in the 1000 block of Alabama Street.The damage is estimated at $1,000.
A 21-year-old KU student reported to Lawrence police damage to a Toyota Corolla between 11:30 a.m. Nov. 10 and 6:50 a.m. Saturday on the 4500 block of Wimbledon Drive.The damage is estimated at $500.
♦ A 19-year-old KU student reported to the KU Public Safety Of fice a theft of a Trek bicycle and a cable lock between midnight Friday and 10:15 a.m. Sunday from Oliver Hall. The bicycle is valued at $200. The cable lock is valued at $12.
CAMPUS
Police charge man in connection with choking
A 21-year-old KU student reported to police that she had been choked sometime between 2:30 and 4 a.m. Nov. 20 at 1121 Louisiana St.
Syam N. Sidhardan, 22 year-old resident of 1121 Louisiana St., was charged with aggravated battery, criminal restraint and criminal threat in connection with the incident, Sgt. Dan Ward of the Lawrence Police Department said.
The woman reported that she went out with several friends to celebrate her birthday, Ward said. The woman reported that a male acquaintance choked her at his residence, Ward said.
The woman reported that she escaped his residence and got help from an individual outside, and police were called, he said.
The woman's neck was bruised,but she was not transported to a hospital, Ward said. Both people were believed to be under the influence of alcohol, Ward said.
Student reportedly hit by car on Memorial Drive
At least two pedestrians have been hit by vehicles on campus this semester, according to KU Public Safety Office records.
In the most recent, Benjamin Cohen, 22-year-old KU student, reported to the KU Public Safety Office that he struck Lindsay A. Barnett, 21-year-old KU student, at 2:26 p.m. Nov. 15 when she was crossing Memorial Drive, a report stated.
Steve Lynn
Cohen reported that he did not see Barnett and struck Barnett with his driver's side front bumper.
Barnett was transported to Lawrence Memorial Hospital after complaining that her back hurt.
Belinda Rehmer, spokeswoman at Lawrence Memorial Hospital, said Barnett was treated and released.
Cohen was cited for failure to yield to a pedestrian, the report stated.
Steve Lynn
THIS WEEK ON CAMPUS
November 22, 2005
funded by:
STUDENT
SENATE
our community many years
Over 500 kids are expected to attend and we need your help. If you would like to help volunteer, please e-mail us at milk@raven.cc.ku.edu or call 864-4072. See you there!
Center for Community Outreach challenging. educating. empowering.
Mentoring In the Lives of Kids is hosting its annual Holiday Party on November 30th from 2-5pm in the Hawk's Nest & Ballroom of the Kansas Union
Music Mentors is having a recital!
Help support the
youth in the community and their musical endeavors
Center for Community Outreach challenging, educating, empowering
November 30th @ 5:30pm Spencer Art Museum Courtyard
Come enjoy free performances by Music Mentor volunteers and their students from
lawrence Junior High Schools!
LAN
(Legislative Advocacy Network) Meeting
Wednesday, Nov. 30th 4:00-5:00pm
Regionalist Room, 5th Floor Kansas Union
Learn how student can:
1) Stop tuition hikes
2) Get fair apartment leases
3) Get control of your tuition dollars
4) Find solutions to other problems facing students