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GM plans to cut staff bill by 20%
Bill Condie15.07.08
General Motors, maker of Vauxhall cars in the UK, is to cut staff costs by 20% in a desperate attempt to ride out the crisis in the US motor industry.
Chief executive Rick Wagoner plans to raise $15 billion (£7.5 billion) by selling assets and cutting costs. He will also hit shareholders by suspending the dividend.
This round of job cuts and salary reductions will fall heavily on white-collar jobs including engineers in the four-wheel drive and pick-up truck divisions.
Soaring fuel costs have stalled sales of the petrolthirsty vehicles and GM is hurriedly trying to refocus energy on more efficient vehicles.
Wagoner said last month that GM would close four North American truck plants employing about 100,000 workers and would try to sell its Hummer brand.
Since then economic indicators have become worse and no real recovery in US car sales appears likely this year or next.
