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GM reports cost-cutting moves
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More from BusinessGeneral Motors Corp. said Tuesday that it will lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion to weather a severe downturn in the U.S. market.
GM said the moves will raise $15 billion to cover losses and turn around its North American operations, including $10 billion from internal cost-cutting, and $5 billion from selling some assets and borrowing against others.
Chief Operating Officer Fritz Henderson said GM wants to reduce its total salaried costs in the U.S. and Canada by more than 20 percent.
A large chunk of the reduction, he said, would come from cutting healthcare benefits for salaried retirees over 65. They would get an increase from the company's overfunded pension fund to help compensate for Medicare and supplemental insurance, the company said.
Several thousand jobs will be cut through normal attrition and retirements and through early retirement and buyout offers. GM could resort to involuntary layoffs but does not want to, he said.
Posted by jokopomo on July 22, 2008 at 7:25 a.m. (Suggest removal)
Ah yes, my 89 year old widowed mom got the ax from GM yesterday, her medical, dental, long term care, vision and drug coverage have become the latest victims of the shrinking American dollar. Imagine ditching our elderly population as a fix for this nations economy, oh well, like Rush says you shouldn't have to be responsible for people who don't work any more, she can just get off her butt and go find a job.
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