GM to cut salaried workers, production, dividend

By STEVE BENTON ( Contact ) Tuesday, July 15, 2008

Podcast Episode

GM Chairman and CEO Rick Wagoner discusses changes to the company at a news conference Tuesday morning.

DETROIT — From Associated Press:

General Motors Corp. plans to lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion as it adjusts to a declining U.S. market.

GM said Tuesday the moves will raise $15 billion to help turn around its North American operations.

GM Chairman and CEO Rick Wagoner announced the cuts to employees Tuesday. He said they are necessary to adjust to lower U.S. sales and a rapid change in consumer preference to smaller cars.

GM forecasts total U.S. sales of 14.7 million vehicles this year. That's down from 17 million three years ago.

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