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.