GM Announces New Cuts
General Motors Corp. announced a new wave of cost-cutting, aimed at stuffing criticism the company hasn't moved fast enough to meet the challenges that contributed to $8.6 billion loss in 2005. Richard Wagoner, GM's chairman and chief executive officer, said Tuesday GM intended to slash the dividend to common shareholders by 50 percent, cap defined-benefit pensions of existing salaried employees and put GM's white-collar retirees on notice that they will have to cover the cost of future increases in health care. The salaries of GM's top five executives and directors also were cut substantially as part of the reductions.
"We are now aggressively implementing a solid plan to turn around the North American business and restore overall profitability as quickly as possible," said Wagoner, who in recent months has been trying to quash speculation that GM might be forced to seek bankruptcy protection. Wagoner, however, said he ruled an across the board pay cut for salaried workers, noting that GM's pay levels are already at market levels.
In November, GM announced it was eliminating 30,000 blue-collar jobs by 2008. -Joe Szczesny
GM Slashes Exec Pay, Dividend by TCC Team (2/7/2006)
Still more "shared pain" could be in the offing, CEO Wagoner suggests.
cutting dividends and salaries, and Ford just setting out on the Way Forward,
2007 Toyota Camry by Bengt Halvorson
Ready to spoil a new round of frugal family buyers - and keep its best-selling title.
even open for business - as has become the custom for
2006 Toyota RAV4 by Bengt Halvorson
Two more seats, two more cylinders, more value all around.
OnStar Adding Turn-By-Turn Navigation
OnStar gets turn-by-turn
navigation this year as the GM division tries to boost profits and take on
in-car navigation systems. The technology will be unveiled this week at the
2006 Chicago Auto Show Preview by TCC Team
Tundra, Avalanche, Entourage, Nitro - and more trucks?
Ford Ditches Zephyr In Favor of Letters M, K, Z
2007 Lincoln MKZ
Flint: Memo to Mark Fields by Jerry Flint
Some things you might want to consider before chopping away.
Ford Gives Workers $100k Severance Option
The Ford Way Forward plan may involve big payouts to workers who choose to retire early - as big as $100,000, so long as the workers forgo any future benefits other than pensions. The Detroit News reports that workers at Wixom, St. Louis, and Atlanta Ford plants may be offered the generous severance packages so that Ford can quickly reduce the number of employees it carries on its payrolls. Though the company hopes to shed workers through attrition, the News says Ford may make the cash-out offer as well as ante up some early-retirement packages, in addition to up to $15,000 in tuition for job retraining. Workers at all plants will be offered all of the applicable plans, depending on company service, pending the approval of the United Auto Workers.
Ford's Way Forward: Press Release by TCC Team (1/23/2006)
Hyundai Entourage Bows in
2007 Hyundai Entourage
2006 Detroit Auto Show, Part
III by TCC Team
Hyundai HCD-9 Talus, Santa Fe, and the death of the five-day car.
Spring comes early to
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