GM Cuts Costs to Stop Its Cash Burn

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July 22, 2008
Autos Insider Newsletter Your weekly insight into the world of autos

NEWS  THIS WEEK'S TOP STORY GM Cuts Costs to Stop Its Cash Burn   MORE TOP STORIES NEWS & FEATURES Small Cars: A Bright Spot for Automakers Sales of small cars have surged as gas has risen. That's good news for carmakers, but there's a problem: They don't have enough of them NEWS & FEATURES Can the Auto Industry Still Sell All Its Cars? Despite production cuts and deep discounts, carmakers and dealers will be more challenged than ever to sell the vehicles in the pipeline GM cuts back on NASCAR and it's about time Here's something that's long overdue. The Associated Press today reports that General Motors is cutting back spending on NASCAR Honda Goes Whole Hog for Hybrids To make up for lost time, the carmaker plans to sell 500,000 a year by early next decade AUTOS China's Geely Has Global Auto Ambitions With the automaker's winning affordable-car formula under pressure at home, Chairman Li is pushing hard for a breakthrough on the world stage Hyundai Happily Downshifts Back to Small Cars tk REVIEWS Mazda5: A Minivan with Major Sales The Mazda5 minivan may not offer much in the way of "zoom-zoom," but it does come with best-in-class gas mileage and, for plenty, "room-room" Advertising | Special Sections | MarketPlace | Knowledge Centers Terms of Use | Privacy Notice | Ethics Code | Contact Us Copyright 2000- 2008 by The McGraw-Hill Companies Inc. All rights reserved. This newsletter is a FREE service provided by BusinessWeek.com. To sign up for other newsletters, cancel delivery, change delivery options or change your e-mail address, please go to our Newsletter Preferences page. If you need other assistance, please contact Customer Service or contact: Wanda Cooper BusinessWeek Customer Rights Communications Data Services 1995 G Avenue Red Oak, IA 51566 Phone: 1-800-635-1200 View our corporate privacy policy here. To learn more about how BusinessWeek.com applies this policy, you can contact our Marketing Department. Copyright 2008, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use | Privacy Notice

Inside: This Week in Autos The big news this week was GM CEO's Rick Wagoner's announcement on July 15 of the company's new cost-cutting plans. The goal is to save or raise about $15 billion in cash by slashing salaried worker costs by 20%, and by cutting jobs and retiree health-care benefits. The move was greeted enthusiastically by investors, who sent GM's share price up more than $2. But one announcement that might concern another large chunk of the population may not be so popular. As Detroit bureau chief David Welch blogged, GM is thinking about trimming the $100 million it spends every year on NASCAR advertising, racing and promotion. (He was all for it, a position which drew the ire of many fans.) Elsewhere this week we looked at the cars that disprove the entire auto industry is a nosedive; these are cars that people are not only buying, but for which there are often long waiting lists. Unsurprisingly, most of them are small. Surprisingly, many of them are from the Detroit 3. Last we looked at Chinese automaker Geely's push to break out on the world stage, reported on Honda?s big hybrid push and reviewed the strong-selling Mazda5 minivan. Charles DuBow E-MAIL A FRIEND  |  GET RSS  |  NEWSLETTERS Advertisement   What's Your Problem? We all have workplace problems. Share with us, and your fellow readers, the hurdles you've faced—and how you've tried to clear them     In Your Face: The Alternative Energy Puzzle Reader Charles Cresson Wood Writes: "Many alternative fuels are now cost competitive with gasoline and petro-diesel. Beyond ethanol and hydrogen, organizations should be looking into other commercially available fuels." Tell Us: How Can the U.S. Kick the Fossil Fuel Habit? >     FEATURED SLIDE SHOWS > > The Auto Industry's Worst Blunders Topless Models: 13 Bargain Convertibles   BLOGAUTO BEAT >> With the October launch of Tata's 100,000 rupee (about $2,400) Nano getting closer, expect the hype surrounding the world's cheapest car to soon revisit January levels. Still, one discussion Tata will probably want to avoid is how much the cheap car will cost to build. — Ian Rowley POST YOUR OWN COMMENTS Visit Our Other Blogs Auto Beat Bangalore Tigers Blogspotting Brand New Day Byte of the Apple Economics Unbound European Insight Fine On Media Games, Inc. GreenBiz Hot Property Investing Insights Management IQ New Technology in Asia NEXT: Innovation Tools & Trends NussbaumOnDesign Tech Beat Working Parents   FEATURED AUTO REVIEWS > > Mazda5: Minivan with Major Sales Dodge Caliber SRT-4   Advertisement   CLASSIC CARS > > Ferrari's Winning Boxer The highly successful 1982 Ferrari 512 BBi "Boxer" was hand-crafted car with mid-engined performance and aesthetic appeal     HYBRIDS > > Zero Emission VW VW's space up! blue fuel cell concept combines an electric motor, lithium-ion batteries and a solar panel to get a range of 65 miles