- Jan 7, 2002
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WILMINGTON, Del. -- General Motors Corp. plans to eliminate 25,000 jobs in the United States by 2008 and close plants as part of a strategy to revive North American business at the world's largest automaker, its chairman said on Tuesday.
Speaking to shareholders at GM's 97th annual shareholder meeting in Delaware, Chairman and Chief Executive Rick Wagoner said the capacity and job cuts should generate annual savings of roughly $2.5 billion. GM now employs 111,000 hourly workers in the United States.
Wagoner revealed the cutbacks as he laid out a four-step strategy to invigorate GM's North American operations, its biggest and most troubling part. Already this year, GM's U.S. market share has fallen from 27 percent a year ago to 25.4 percent, much of the loss at the expense of Asian automakers such as Toyota Motor Corp. and Nissan Motor Co.
Wagoner focused on four priorities: increasing spending on new cars and trucks; clarifying the role of each of GM's eight brands; intensifying efforts to reduce costs and improve quality; and continuing to search for ways to reduce skyrocketing health care expenses.
He noted that health-care expenses add $1,500 to the cost of each GM vehicle. This puts GM at a "significant disadvantage versus foreign-based competitors," Wagoner said. http://www.detnews.com/2005/autosinsider/0506/07/01-207090.htm
Speaking to shareholders at GM's 97th annual shareholder meeting in Delaware, Chairman and Chief Executive Rick Wagoner said the capacity and job cuts should generate annual savings of roughly $2.5 billion. GM now employs 111,000 hourly workers in the United States.
Wagoner revealed the cutbacks as he laid out a four-step strategy to invigorate GM's North American operations, its biggest and most troubling part. Already this year, GM's U.S. market share has fallen from 27 percent a year ago to 25.4 percent, much of the loss at the expense of Asian automakers such as Toyota Motor Corp. and Nissan Motor Co.
Wagoner focused on four priorities: increasing spending on new cars and trucks; clarifying the role of each of GM's eight brands; intensifying efforts to reduce costs and improve quality; and continuing to search for ways to reduce skyrocketing health care expenses.
He noted that health-care expenses add $1,500 to the cost of each GM vehicle. This puts GM at a "significant disadvantage versus foreign-based competitors," Wagoner said. http://www.detnews.com/2005/autosinsider/0506/07/01-207090.htm
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