Gm Gets The Bad News Ready
It's almost time to close the books on 1992 at General Motors. GM managers have been haggling about the size of proposed yearend write-offs to be presented to the board at its Feb. 1 meeting. A review by J. P. Morgan & Co. recently recommended that GM increase its reserves for such items as pensions and plant closings. A source says the auto maker's new management team, which wants to put the bad news to bed, backs such a move. But GM's old guard is resisting a big charge as an admission of past errors. Some of GM's future is certain. Former Chairman Roger Smith on Jan. 27 announced his retirement from the board. And at some point, GM must take a $16 billion to $24 billion charge for retiree health benefits.
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