What's the Future for GM?
By ALEX TAYLOR III

(FORTUNE Magazine) – To scuttle an alliance with Renault Nissan, GM's CEO Rick Wagoner persuaded his board of directors that he had a better plan. But he hasn't convinced Kirk Kerkorian, owner of 9.9% of GM's stock, who yanked his representative Jerry York from the board so that he could agitate from the outside.

1 What's GM doing to stave off bankruptcy? Wagoner has announced the closing of 12 plants, pushed 34,400 hourly workers off the payroll, slashed headcounts and benefits for salaried employees, and gotten a handle on pension and health-care costs. Wall Street responded by bumping the stock up about 50% in the past six months. But Wagoner still needs to fix GM's revenue problem.

2 What's that? GM has a tough time mar-keting cars people will buy without a bribe. Incentive spending in September was $700 per car less than a year ago, but market share fell 1.2%. To keep unsold cars from piling up, GM was forced to cut production by 20,000 units in the fourth quarter.

3 That sounds bad. It gets worse. GM is way too dependent on fuel-thirsty SUVs and pickups, which consumers are shunning in favor of lighter, more nimble crossover vehicles--a product segment pioneered by the Japanese.

4 So what's on Wagoner's to-do list? Close the sale of GMAC's 51% to Cerberus Capital Management. Get the parts-maker Delphi out of bankruptcy. And get ready for a proxy fight if Kerkorian comes after his allies on the board.

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.