GM to cut salaried workers, production, dividend
DETROIT (AP) General Motors Corp. plans to lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion as it adjusts to a declining U.S. market.
GM said Tuesday the moves will raise $15 billion to help turn around its North American operations.
GM Chairman and CEO Rick Wagoner announced the cuts to employees Tuesday. He said they are necessary to adjust to lower U.S. sales and a rapid change in consumer preference to smaller cars.
GM forecasts total U.S. sales of 14.7 million vehicles this year. That's down from 17 million three years ago.
Click here to listen to GM CEO Rick Wagoner's presentation.

Jul 15, 2008 at 10:39 p.m.
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There is No Union Loyality here half the fellow workers sold out to the G.M Buyout leaving the rest to be picked off like ducks in a pond. No one is watching anyone's back except there own. Unions Suck
Jul 15, 2008 at 8:51 p.m.
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Re state what I just posted...."Solidarity" is a union term, when the Union backs you..if the pull is there. If it is not, then the rest of my previous post still stands.
Jul 15, 2008 at 8:45 p.m.
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Solidarity..???
That is a term used for an opressed nation, not a company. What are all you Ex-GM employee's gonna do, stand in front of the bulldozers with signs looking to be a martyr? Are You all gonna band together to make sure you work at the same company so you can overthrow the management? Friendship would be a better term...stick together and help eachother out. My guess is tho that after the need to take other jobs becomes your reality, you will lose touch with most of those GM friends.
Jul 15, 2008 at 6:46 p.m.
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I knew 3 weeks ago the plant would be closed by Halloween. My hubby brought home a paper that lists the weeks the plant will be shut down for July, Aug, Sept, and Oct. Listing the plant completely shut down Nov and Dec. Old news.
Jul 15, 2008 at 2:56 p.m.
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If you people spent as much time working on a solution as you did about complaining about the problem at hand you might find an answer. Just except what life has given you and move on, quit whinning about what you cant change.
Jul 15, 2008 at 2:10 p.m.
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I guess there are some on here who have never heard of "Solidarity". The ones who lose their jobs at GM will stick together and we will make it, maybe with not as much money but we will do fine.
And yes the property value will for sure drop because I remember when many went to Ft.Wayne, they were selling their homes for balance owed and thats it.
As far as Mr Wagoner, I think he is doing too little too late. The new electric vehicles should of been on the market right along side of the Prius.
Jul 15, 2008 at 2:09 p.m.
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OK. I wasn't going to upload anymore posts but I can't resist: Mr. "Rocky" has asked, "Name any other company that provides health care for that age group of retirees." I will: the Federal government - any number of workers including those that work for Social Security Administraion, The Department of Defense, The FBI, even AMTRAK or the UNITED STATES POSTAL SERVICE." The "State of Wisconsin", Ameritech, Northwestern Mutual Life, Miller Brewery, CUNA Mutual, The CIty of Janesville, All campuses of the University of Wisconsin including UROCK, Madison, Whitewater, Plateville, etc, etc. While it is true there are less and less employers able to pick up the tab for "traditional" benefits it is also true we as citizens must through our "VOTE" pick candidates who will truely represent us and not the powerful lobbyists in Washington, D.C. and Madison, WI. Savy? Wake UP!!!! America burns while Uncle George Fiddles. Fiddles in Bejing as gasoline goes to $5.00 per gallon in Ameeria. How may years have we had to establish a sound and tenable energy policy that emphasizes conservation and renewable energy here in the lower 48? God Save our Gracious Republic. 'Cause I don't see anyone other the "GOD" stepping up to the task!
Jul 15, 2008 at 1:47 p.m.
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One more thing "Mr. Rocky" - BOO HOO. BOO HOO HOO.!!!!!!!!!!!!!
Jul 15, 2008 at 1:28 p.m.
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Well Mr. "Rocky" to you I would say this: GM made a rock solid promise of benefits to it's retirees. It is my understanding that "Medicare" for those over the age of 65 pays 80 percent. For GM retiress over the age of "65 GM picked up the other "20%" not covered by medicare. So say you come down with terminal cancer that has spread into your liver, kidneys and lungs. (As it has for a Janesville retiree that happens to be my dad.) And you are over the age of 65, have worked your entire 30+ years as an accountant at GM. The bill for the CHEMO is 250,000.00 dollars. Medicare picks up 80 percent or $200,000.00. That will leave you and your estate liable for $50,000.00.
Maybe in your opinion it is good that our country, our government, our businesses and industries are bankrupt. Banrupt morally, ethically, financially and fiduciary.
Help me understand hou our greed amd avarice helped us to arrive where whe're at and how we can escape from this untenable position and move forward into a secure and sound financial future.
What do you propose? What will your property in Rock county be worth compared to what you paid for it when the best employer in Rock county pulls out from under you?
Jul 15, 2008 at 12:14 p.m.
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At age 65 those salaried retirees will be eligible for Medicare. The company continuing to provide benefits is redundant. You and I are providing the benefits, instead. Name any other company that provides health care for that age group of retirees. I don't see you clamoring to provide that level of service for public employees like Police Officers or Teachers. Those retirees now simply have to live like the rest of us. Boo-hoo.
You all also need to take an economics 101 course. There is a difference between recession and depression. So how can we tell the difference between a recession and a depression? A good rule of thumb for determining the difference between a recession and a depression is to look at the changes in GNP. A depression is any economic downturn where real GDP declines by more than 10 percent. A recession is an economic downturn that is less severe. Currently our GNP has still been GROWING at a very slow rate - technically not even a recession.
Now, without GM I would think Janesville's production of goods and services may possibly decline more than 10%, creating a local "depression", but perhaps your wrath should be focused on Detroit and not Washington.
Jul 15, 2008 at 11:31 a.m.
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I don't know what news service you picked your story from but there is one additional thing you need to report on based on Rick Waggoners news conference. That is this:
General Motors is planning on eliminating salaried retiree health benefits for those over the age of 65 beginning on Jan. 01, 2009. And for those of you union employees who think your pension and health insurance benefits are secure - - - I'd think again. When will all of us who are about to face the great depression of 1929 all over again start thinking it is time to descend on Washington D.C. with barrels of tar and feathers so that we can reclaim government "by the people and for the peole" from the corrupt a-holes in both the democratic and republican parites who are totally beholding to big money and special interests.
Maybe when enough of you are diagnosed with terminal cancer, etc. only to to discover that yous promised GM benefits no longer exist and that you will have to hand over your life savings including your propety and home for cancer treatment; maybe then you will realize that you and our nation have finally arrived where we've been headed for years . . . bankruptcy. I hope we can turn it around before it's the great depression all over again.
Jul 15, 2008 at 11:15 a.m.
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This recession is getting Depressing or should I say Depression..
Jul 15, 2008 at 10:18 a.m.
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RECESSION? how about depression. the folks are starting to make cash runs to the banks to get their money out. the banks are starting to close. sounds like the great "d" allover again. the more things change, the more they stay the same. like the earth, the economy has to recycle. and it seems like it is time now.
Jul 15, 2008 at 9:30 a.m.
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Maybe this will get Rick Wagoner another huge bonus...he has earned it....NOT..
Jul 15, 2008 at 8:36 a.m.
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Yup - cooked, done. So begin demo'ing the building by Thanksgiving, begin the remediation of the site, and wipe the scar from the memory of thousands of GM families.
*
An empty canvass with rail and road access will prove to be valuable for the region.
Jul 15, 2008 at 8:34 a.m.
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Sadly, I concur that prediction. I hadn't been too confident that they'd be working the 10 scheduled weeks for this year as it were.
Jul 15, 2008 at 8:31 a.m.
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Looks like the stock won't be a buy for another 8 months to a year at least.
Jul 15, 2008 at 8:27 a.m.
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I will be the first to predict the plant will shut the doors before Oct this year.
Jul 15, 2008 at 8:15 a.m.
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Watching news conference, without saying anything specific about plant closings, I think they sure put the writing on the wall regarding Janesville.
Jul 15, 2008 at 8:05 a.m.
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Ut Oh............
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