Bangkok--13 Mar--Weber Shandwick
GM STATEMENTS ON:
- General
- VSP/FSP/Plant Closures
- Potential of Bankruptcy (US)
- Potential of Bankruptcy (Thailand)
- Workplace Safety
In view of the various reports and issues on GM that have been circulating recently, we are hereby issuing statements to address these often-times inaccurate reports.
GENERAL
1) The current economic situation is not only affecting General Motors. It is impacting all industries and this effect is global in nature. Almost every company around the world is discussing cash-conservation options, restructuring and requesting for assistance from local governments and relevant bodies/parties.
2) We have to restructure our operations as the demand for big-ticket items such as automobiles has reduced dramatically.
3) GM is committed to the Thai market. We are self-sustainable and we believe that the merits of our projects to Thailand are clear and compelling.
VSP, FSP & PLANT CLOSURE
1) Laying off workers is always the last option for us. The decision to put any employee under the FSP scheme was strictly objective and based on strict criteria set by GM’s HR department. GM has assured all stakeholders that at no time did favoritism or personal judgment play a part in the decision-making process.
2) VSP and FSP was inevitable due to the decline in demand for automotive products which have significantly lowered our production output at the plant.
3) Our initial restructuring plan included a voluntary separation package that offered workers a lump sum payment higher than what is required by the Thai labor laws. However, with the deepening crisis, the company had to consider implementing other strategies, also compliant with the Thai Labor Act, on a limited basis in order to meet our overall restructuring requirement.
4) The package we are offering is already higher than what is required by law. This shows the high esteem in which we hold our employees.
5) Contrary to some inaccurate reports, currently, we do not have any further plans to lay off workers.
6) Due to the deepening crisis and the need to manage cash-burn, we have closed the plant temporarily 2 times since last Dec. The next temporary closure is from 23 — 27 March 2009 to address the issue of excessive inventory, due to a significant decrease in consumer demand. In total, there are 8 weeks as opposed to the report of 3 months. The plant will resume an operation on 30th March.
POTENTIAL OF BANKCRUPTCY (US)
1) Restructuring the U.S. General Motors business out of court remains the best solution for GM and its constituents. The company has established a clearly-defined plan to restructure its business and restore GM to long-term viability, and GM is aggressively executing that plan through a series of actions outlined in its February 17 viability plan.
A viability plan, like any business plans, has to take into consideration ALL possible scenarios, positive or otherwise. However, the company firmly believes an in-court restructuring would carry with it tremendous costs and risks, the most significant being a dramatic deterioration of revenue due to lost sales.
In fact, GM hasn’t changed its view that bankruptcy is not something it wants to contemplate at this time, and is continuing its efforts to restructure and gearing for growth.
POTENTIAL OF BANKRUPTCY (THAILAND)
1) The entities in the AP Region are self-sustainable and have the capability to operate independently from the US operations in terms of products, technology and funding. Chapter 11 would specifically apply to the US entity only. GM in ASEAN remains strongly committed to its customers in this region with great determination to only offer the best products, services and technology for long-term sustainability.
2) As we mentioned, the current crisis is affecting the global economy. While it is undeniable that, in short term, every industry, including the auto industry, has been impacted, GM ASEAN has been watching and analyzing the situation closely in order to continually improve its implementation plans. Other auto companies are facing obstacles as well. Nevertheless, each of us has our own solutions under the same objectives, which are to overcome this crisis and develop the ASEAN auto industry.
3) GM ASEAN believes that when the situation improves, all auto companies would recover to the point that our competitive abilities will greatly increase. With our product quality, leadership in technology and fuel efficiency, consumers will receive the ultimate benefit as a consequence.
4) Contrary to popular misconceptions, GM Thailand and Chevrolet Sales Thailand (CST) are not on the brink of bankruptcy, and have no intent to file bankruptcy.
5) A report was recently circulated naming CST as the most likely company to go bankrupt — this is certainly inaccurate because it doesn’t take into consideration various big-picture considerations when comparing with other companies, especially to rate in ranking, including:
o CST is an affiliate of GMTH and the marketing arm for products in Thailand.
o Hence, it is inaccurate to base an assumption on n affiliate alone, when the performance of the whole group of companies hasn’t been taken in account. Furthermore, the conclusions were based on figures from a single year of 2008— GMTH/CST has been in operation in Thailand and since year 2000.
o As a whole, GMTH and CST have been reasonably profitable in Thailand and the region for three of the last years.
o We have taken the opportunity to reinvest in our business in Thailand while we’re profitable and these include our new diesel engine plant and the assembly of one-ton pickup trucks.
WORKPLACE SAFETY
1) GM maintains a very strict adherence to safety guidelines and regulations which not only satisfies Thai labor laws, but international labor codes as well — there is no compromise.
2) Furthermore we are an ISO-certified company and have very strict and exact guidelines to follow in terms of operational safety. Wearing face masks on the floor to avoid inhalation of harmful gasses, odors and chemicals is a part of this requirement and, at no time did GM condone or accept any compromises on this requirement.
3) In-line with our focus on safety, and our concern for the welfare of our employees, we have round-the-clock health facility on site, with a nurse and occasionally doctors stationed at all times during employees’ working hours.
4) In addition to our clear safety record, we have also been recognized for our dedication to our workers’ health and safety by the following:
? Recipient of the Safety, Occupational Health and Working Environment Awards by Minister of Labor and Social Welfare for 8 consecutive years (2001 — 2008)
? Reached 43 million work-related hours without lost time injury
? 2004 Prime Minister’s Industry Award for Quality Management
? Recipient of the Outstanding Labor Relations Award from the Ministry of Labor for the 3 consecutive years (2003 — 2005)
Insights into recent reports:
A recent report has surfaced, featuring an ex-employee (K. Ek) of GMTH. We would like to clarify our situation on some inaccuracies raised by these reports:
? The relevant authorities and the Committee of Social Security, has verified and concluded through investigation that the alleged accident involving K. Ek did not happen due to any form of negligence or non-compliance on GM’s part, nor did the accident, in any way, contribute to his current health conditions. K. Ek’s accident in the paint-shop was due to his condition, which was later diagnosed to be Parkinson’s.
? K. Ek started working on March 2005 as Temp (from Manpower) in the ‘moist sand’ paint-shop. His responsibility was to clean water dripping off the roof of the vehicles on the production belt.
? In June 2006, K. Ek was employed as a full-time GMTH staff.
? In November 2007, K. Ek was diagnosed with Parkinson Disease. Subsequently, GM moved him to perform lighter tasks in a non-vehicle-production function which his main responsibility was to wash by washing machine, to dry and fold clean paint-shop apparels.
For further information, please visit www.gmthailand.com and www.chevroletthailand.com or please contact:
Thitinee Charuvichitratana / Satapana Karnjanaprakorn
Weber Shandwick
McCann Worldgroup (Thailand) Ltd.
Tel: 0-2343-6057 Fax: 0-2343-6003 Mobile: 0-81919-7593
Email: [email protected] / [email protected]
Or
Sasinan Allmand
Public Relations Director
General Motors (Thailand) Limited & Chevrolet Sales (Thailand) Limited
Tel: 0-2791-3400 Fax: 0-2937-0441
Email: [email protected]