GM Cuts back, AgainDavid Welch
The U.S. auto industry is deep in the throes of a massive restructuring. General Motors Chairman and CEO Rick Wagoner will tell the next chapter this morning. GM won’t divulge details, but several company sources say that Wagoner will announce several cost-cutting moves as well as a few ways GM can conserve or raise more cash. One big theme: Wagoner will make the case that GM has enough cash to stave off bankruptcy even under pretty dire circumstances. GM needs to stay flush until around 2010, when a recently-inked union contract will save the company billions in cash a year. By then, a deal to set up a union-led healthcare fund would save GM more than $4 billion a year. Lower wages will also save billions.
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