More production and job losses in America
15 July 2008

General Motors boss Rick Wagoner has revealed further cost-cutting measures in the US, intending to protect the embattled manufacturer from bankruptcy.

The cuts are intended to save nearly $10 billion (£502m) and include reducing the cost of salaried workers by a further 20 per cent, slashing pick-up truck production and cutting back on development costs.

GM’s European operations, including Vauxhall, have yet to be affected by major cutbacks. But in America the world’s erstwhile largest car manufacturer is suffering from the one of the largest crises in its century-long history. GM’s share price has fallen dramatically in the last week and, in the face of fears the company could run out of money, Wagoner’s new turnaround plan is intended to win back market confidence.

Labour costs will be reduced through another programme of early retirement and voluntary redundancy, wages will be frozen and healthcare benefits will be pared back. The product development budget also faces cutbacks, with the launch of new models delayed, and the company will slash production of 300,000 of its slow-selling pick-up trucks by the end of the 2009, doubling the cuts that had already been announced.

Find an Autocar car review

Driven this week

Like the other members of America’s ‘big three’, Ford and Chrysler, GM has been hit hard by the rise in oil prices and America’s economic downturn, strangling demand for the large pick-ups and SUVs on which its profits were based. The company has previously announced that its Prius rival, the Chevrolet Volt, will be brought to market earlier than anticipated.

Mike Duff

Join the debate

Comments
4

15 July 2008

[quote Autocar]But in America the world’s erstwhile largest car manufacturer is suffering from the one of the largest crises in its century-long history[/quote]

Toyota is the world's largest car maker, not GM

15 July 2008

[quote ThwartedEfforts]

[quote Autocar]But in America the world’s erstwhile largest car manufacturer is suffering from the one of the largest crises in its century-long history[/quote]

Toyota is the world's largest car maker, not GM

[/quote]

type "define: erstwhile" into google, and this comes out:

erstwhile(a): belonging to some prior time; "erstwhile friend"; "our former glory"; "the once capital of the state"; "her quondam lover"

Google, and lexicons, are your friend :).

16 July 2008

Yes, thanks dad, I'm not stupid, just blind.

Who on earth says "world's erstwhile largest" anyway? According to my 'friend' Google, nobody.

16 July 2008

"...strangling demand for the large pick-ups and SUVs on which its profits were based"

More fool them for continuing to base their profits on deservedly unsustainable market sectors.

www.eco-trainer.net

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week