GM to Announce New Round of Major Cuts

$4 gas threatens workforce, car and truck production
By Rob Quinn,  Newser Staff
Posted Jul 15, 2008 2:37 AM CDT
New General Motors Hummer SUVs sit on a dealer lot in Benton, Ark., Tuesday, June 3, 2008.    (AP Photo/Danny Johnston)
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(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."