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GM to Announce New Round of Major Cuts

Posted Jul 15, 08 2:37 AM CDT in US,  Business 

(Newser) – General Motors is expected to announce another big round of cost-cutting measures today, Bloomberg reports. Insiders say the ailing automaker, hit hard as consumers leave gas-guzzlers standing in car lots, is likely to slash thousands of jobs and reduce production of trucks and SUVs for the second time in two months.

CEO Rick Wagoner said last week that bankruptcy is not being considered and no vehicle lines will be eliminated, apart from possibly the Hummer—but analysts aren't ruling out anything as the company reels from a 16% drop in US sales. "They made a lot of moves on the product side that made sense when gasoline was $3 a gallon that don't make sense at $4 a gallon,'' said an industry analyst. "This could be ugly."

Source Bloomberg

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New General Motors Hummer SUVs sit on a dealer lot in Benton, Ark., Tuesday, June 3, 2008.   (AP Photo/Danny Johnston)
In this June 3, 2008 file photo, GM Chairman and CEO Rick Wagoner addresses the annual shareholders meeting in Wilmington, Del. Wagoner is expected to outline more cost-cutting measures for GM today.   (AP Photo/Bradley C Bower, file)
A General Motors truck moves past an empty business for lease, left, located across the street from a GM sport utility plant, rear, Tuesday, June 3, 2008, in Moraine, Ohio.   (AP Photo/Al Behrman)
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auto industry  • General Motors  • job cuts  • Hummer  • vehicle  • Rick Wagoner


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