General Motors Corp. has decided to sell off $4 billion to $7 billion worth of assets and cut 20% worth of salaried cash costs in hopes of saving billions of dollars.
The Chief Executive Rick Wagoner said that these were “difficult decisions,” but necessary for the company to prevail in the weak economy that has resulted from the high oil prices, which he called GM’s “greatest concern.”
In a plan to win, instead of just survive, Wagner said the cost-cutting will generate $10 billion in “cash improvements” by the end of 2009.
This restructuring decision made by GM, the fourth-largest American company in terms of annual sales, is just a rude awakening to the difficult economic times we are now facing.
To read more about GM’s cost-cutting click here.
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