Sunday, August 20, 2006

GM cuts spending on midsize cars by $1B

Tuesday, August 08, 2006
GM cuts spending on midsize cars by $1B
Bloomberg News

General Motors Corp., the world's largest automaker, will cut costs for new midsize car models by a third as it rolls out a system for sharing parts, vehicle designs and factories, a top manufacturing executive said.

Plants in three regions will be able to build 19 variations of brands and styles such as Chevrolet Malibu sedans and Saab convertibles, Jim Wiemels, GM vice president of global manufacturing engineering, said during a JP Morgan investor conference Monday in Dearborn. The change will reduce spending on the cars by $1 billion, GM spokesman Dave Roman said.

The plan to pay less to develop and manufacture new vehicles is part of GM Chief Executive Officer Rick Wagoner's strategy for restoring profits and winning back buyers lost to competitors such as Toyota Motor Corp.

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