GO
Loading...

Enter multiple symbols separated by commas

GM Set to Announce Further Steps to Cut Costs

General MotorsChief Executive Rick Wagoner is set to announce further steps on Tuesday morning to cut costs in the face of slumping sales.

GM executives, including Wagoner, scheduled a series of briefings for employees, analysts and reporters on Tuesday, starting at 8:30 a.m., the company said in a statement.

The company said the briefings would detail what GM is doing to "align" its operations to current market conditions.

The No. 1 U.S. automaker has been under intensifying pressure to cut costs because of a rapid shift away from trucks and SUVs and a decline in overall sales.

Last week, Wagoner said GM will not consider selling or eliminating any brands besides Hummer and has no plans to declare bankruptcy, Richard Wagoner, chairman and CEO, said Thursday at the Dallas Chamber of Commerce.

"Our focus on all of our brands is, 'What can we do to make them more profitable?'" Wagoner told the Dallas Chamber of Commerce on Thursday. "We take advantage of the products we have and in some cases how we want to evolve the product portfolio to the current world," he said.

Wagoner said the rationale behind a potential Hummer sale was because of the "pretty dramatic change in the circumstances" relating to high fuel costs. (See the accompanying video for more.)

GM expects consumers to continue responding to a declining economy and rising gas prices by switching to crossover vehicles, and the company is working to better suit buyers' demands, he said.

"Consumers are reacting in a very logical way, and we need to have the products that [react to] that," Wagoner said. "Meanwhile, those that really use the full capabilities of the SUV’s—whether it’s hunting, whether it’s off-road towing, work usage—we’ll have a great product for them there.”

GM will continue to align its production with anticipated demand, he said.

--Reuters contributed to this report.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.