GM Workers Get Holiday Pep Talk : Chairman Urges Employees Not to Lose Faith in Firm

DETROIT —  General Motors Chairman Roger Smith urged employees Tuesday not to lose faith in the company despite its recent disappointing profits, plant closings and layoffs of thousands of workers.

“In these days of America bashing, business bashing and, yes, GM bashing, I ask you to have faith . . . in your corporation,” he said at an impromptu press conference as he was leaving the annual Christmas gathering of employees at GM’s headquarters.

He added that GM is “going through an unprecedented era of renewal. . . . The darkest days are behind us. The headlines portray us as a non-caring, heartless giant. Well, don’t you believe it--not for a minute.”

Confidence in the management of the world’s largest car maker has been declining with its profitability. This year’s profits are expected to be down $1 billion or more from the $4 billion earned in 1985.

In November, the company announced plant closures that will bring layoffs for 26,000 hourly workers and 3,000 salaried employees.

In addition, GM set off a storm of controversy earlier this month when it ousted one of its most vocal critics, Texas billionaire H. Ross Perot, from its board of directors, acquiring his shares for more than $700 million.

Smith declined to forecast an improvement in the giant auto maker’s earnings in 1987 over 1986, citing uncertainty over whether added marketing costs for sales incentives will be necessary.

“We’ll have to wait and see how the competition works out on that, because I don’t quite frankly know right now,” he said.

Analysts are generally forecasting that 1987 earnings could be even weaker than in 1986.