Weathering Slow Growth

CEOs face a daunting array of tough choices: Are they ready?

David M. Cote, president of TRW Inc., is putting out the word to his managers. After years of record growth, car sales are slamming into reverse, and production could be down as much as 10% next year. So the Cleveland-based company, which gets two-thirds of its $17 billion in annual revenue from auto parts, is looking for places to lop off costs. Except for information technology, he says, "we're cutting everywhere." Cote is also scouting around for assets to sell. And he's offering sharply higher bonuses for managers who soundly beat their targets for generating cash.

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