GM to cut jobs, suspend dividend, sell some assets in order “to Survive”
By Joshuah at 15 July, 2008, 10:00 am
OK, so GM is doing what it takes in order to survive the storms ahead. That’s the corporate mentality. Likewise, I sincerely hope that individual people (and by this I mean men with wives and children) are taking whatever steps are necessary for them “to survive” the storms also.
But if anyone does not provide for his relatives, and especially for
members of his household, he has denied the faith and is worse than an
unbeliever. 1 Timothy 5:8
From: money.cnn.com
General Motors Corp. said Tuesday it will suspend its dividend, sell off $4 billion to $7 billion worth of assets and cut 20% worth of salaried cash costs in an overall plan to save billions of dollars.“We need to take some very tough actions to ensure our survival and success,” said Chief Executive Rick Wagoner, in a press conference, referring to the current market conditions as an “unprecedently difficult time.”
In an earlier broadcast to employees, Wagoner said that these were “difficult decisions,” but necessary for the company to prevail in the weak economy beset by high oil prices, which he called GM’s “greatest concern.”
Wagoner said the cost-cutting actions should help GM generate $10 billion in “cash improvements” by the end of 2009. Overall, the company plans to beef up liquidity by $15 billion through 2009.
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