Filed under: General Motors (GM), Toyota Motor Corp. (TM)

General Motors Corp. (NYSE: GM) will need to assemble a compelling restructuring plan if it hopes to get the $12 billion it seeks from the U.S. Last week I proposed a six step plan — part of which suggested GM should get rid of unprofitable lines such as the Saturn, Saab and Pontiac brands and dump their related dealerships. And it looks like GM is now considering just such steps.

But the sales declines and inefficiency of their related dealerships provide a startling look at just how poorly managed GM really is. Let’s consider lost sales first — Pontiac’s fell 21% in 2008, compared with a 15% industry-wide decline through October; Saturn’s sales tumbled 19%; and Saab’s sales plunged 31% through October, according to Bloomberg News.

Along with these plunging sales figures, GM hosts some remarkably inefficient dealerships. Toyota Motor Corp.’s (NYSE: TM) dealers are as much as 10 times more productive than GM’s. For example, Toyota, which includes the Scion brand, sold 1,071 cars at U.S. dealerships in 2007 compared with 274 at Saturn, 118 at Pontiac and 115 at Saab.

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GM restructuring plan reveals lost sales, high costs originally appeared on BloggingStocks on Thu, 27 Nov 2008 14:37:00 EST. Please see our terms for use of feeds.

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