General Motors said Tuesday, July 15, that it will improve its finances
through 2009 by laying off salaried workers, making more cuts in truck
production, suspending its dividend and borrowing at least $2 billion as it
rides out its worst U.S. sales in a decade. Those moves, combined with several other initiatives, are expected to improve
GM's cash position by $15 billion through the end of 2009.
The No. 1 U.S. automaker was compelled to cut costs and raise capital because
of a deepening slump in U.S. auto sales. Through the first half of the year,
GM’s total U.S. light vehicle sales are off 16.3 percent.
GM said it will save $1.5 billion, or 20 percent of its cash costs, in 2009
through layoffs and changes in benefits to salaried employees and
executives.
clipped from workforce.com
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