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GM to cut salaried workers, truck production and suspend dividend
TweetDETROIT (AP) — General Motors Corp. said Tuesday it will lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion to weather a severe downturn in the U.S. market.
GM said the moves will raise $15 billion to help cover losses and turn around its North American operations.
"In short, our plan is not a plan to survive. It is a plan to win," GM Chairman and CEO Rick Wagoner said in a broadcast to employees.
Chief Operating Officer Fritz Henderson said GM wants to reduce its total salaried costs in the U.S. and Canada by 20 percent.
A large chunk of the reduction, he said, would come from cutting health care benefits for salaried retirees. Those people would get a pension increase from the company's overfunded pension fund to help compensate for Medicare and supplemental insurance, the company said.
Several thousand jobs will be cut through normal attrition and retirements, and through early retirement and buyout offers, Henderson said. The company could resort to involuntary layoffs but does not want to, he said.
GM has 40,000 salaried employees in the U.S. and Canada.
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Headline from 2020!
Published:Tuesday, July 15, 2020
Abu Dhabi (AP) — General Motors Corp. in its latest restructuring said Tuesday it will lay off its last salaried workers, cut truck production completely, suspend its operations and borrow $100 billion dollars for Rick Wagoner's golden parachute due to a severe downturn in the U.S. market.
In short, our plan is not a plan to survive. It is a plan for me to win," GM Chairman and CEO Rick Wagoner said in a broadcast to employees.
Chief Operating Officer Fritz Henderson said GM wants to reduce its total salaried costs in the U.S. and Canada to 20 dollars.
A large chunk of the reduction, he said, would come from eliminating health care benefits for salaried retirees. Those people would get a pension increase to $2 per year from the company's nearly bankrupt pension fund to help compensate for Medicare and supplemental insurance, the company said.
Several jobs will be cut through normal attrition and retirements, and through early retirement and buyout offers, Henderson said. The company could resort to involuntary layoffs but does not want to, he said.
GM has 4 salaried employees in the U.S. and Canada.