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Former Treasury Secretary Summers warns GM against 'big executive bonuses' in the face of massive layoffs

Key Points
  • It would be "deplorable" if GM were to give big bonuses to executives after announcing 14,000 job cuts, former Treasury Secretary Larry Summers says.
  • The automaker also shouldn't rely on foreign workers, he says.
Larry Summers says GM shouldn't hide from cost-cutting measures
VIDEO5:4905:49
Larry Summers says GM shouldn't hide from cost-cutting measures

General Motors ought to be careful not to award big bonuses to executives after announcing 14,000 job cuts, former Treasury Secretary Larry Summers said Wednesday.

"Is this the time GM should be giving big executive bonuses? No. If they are, it's deplorable," Summers told CNBC's "Power Lunch."

He added that GM should not rely on foreign workers to build cars, something labor leaders have feared will happen.

The largest American automaker said Monday it will halt production at several plants in the U.S. and Canada, and expects to cut 14,000 jobs.

The layoffs are unfortunate, but GM must stay competitive, Summers said.

"Obviously if GM developed better products and had done a better job, they wouldn't have to do this," he said. "That's something we can regret."