GM Will Cut Salaried Jobs, Benefits to Survive Slump

Company aims to cut costs to boost liquidity, cope with lower sales
By Sam Biddle,  Newser Staff
Posted Jul 15, 2008 9:42 AM CDT
The discount available is highlighted on the side of an unsold 2008 Denali at a GMC Truck dealership in Littleton, Colo., on Sunday, July 13, 2008. General Motors Corp. plans to lay off salaried workers,...   (AP Photo/David Zalubowski)
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(Newser) – General Motors will cut salaried jobs, accelerate factory closings, and eliminate health care coverage for many salaried retirees in order to raise $15 billion to survive the industry's deep downturn, the Wall Street Journal reports. GM will also suspend dividends, sell some assets, lower capital spending, and cut production of pickup trucks and SUVs.

The company claims to have enough cash to meet its 2008 funding requirements, but "is taking additional measures to bolster liquidity to protect against a prolonged US downturn." The company said these moves would put it on track for a recovery of the auto market projected in 2010. GM expects vehicle sales to fall to about 15 million this year—a million short of its initial projection, as consumers shift away from trucks and SUVs.