GM On A Cost-Cutting Mission, 25,000 Jobs At Stake

General Motors is on a mission to cut costs, and of course that means, cutting jobs. The corporation plans to cut about 25,000 jobs and close assembly and component plants in the U.S. over the next several years. GM's Chairman and CEO Rick Wagoner broke this news at an annual shareholders meeting. The company lost $1.1 billion in the first quarter, and Wagoner told shareholders that GM expects to save more than twice that each year as it cuts its costs.

General Motors Trims 25,000 From Payroll: Is It Enough

"First, we are clarifying and focusing the role of each of our eight brands, giving them distinctive, clear, compelling roles in the GM portfolio. We start with our foundation brand Chevrolet in the mainstream of the market, and Cadillac at the premium end. Both of these brands are in good shape, and we have plans to make them even stronger. Our other six brands -- GMC, Pontiac, Buick, Saturn, Saab and Hummer -- will focus on targeted market niches, offering distinctive, differentiated products with easy-to-grasp brand promises. In some cases, such as Pontiac and Buick, it will mean fewer but stronger entries in the future."

"Second, we'll go to market with a total value proposition. This means, simply, going back to selling cars and trucks on the basis of the great value that they have to offer customers, with lessening emphasis over time on incentives. It means strong product offerings at compelling prices that represent great value -- like the Chevy HHR at $15,995; the Pontiac Solstice at $19,995; and the Hummer H3 at $29,500. It means improving our total value proposition by including industry leading content, features, and technology -- like offering OnStar and Stabilitrak as standard equipment on all GM cars and trucks."

"Third, we'll focus on improving our sales performance in major metropolitan markets. Simply stated, we need to perform as well in the top 25 markets in the U.S. as we do in other parts of the country. This means strengthening our position in markets like Miami, New York, Washington, and Los Angeles."

"Fourth, we're accelerating our drive for consistent, world class distribution networks. This means getting our dealers on channel -- Chevrolet and Saturn remaining as standalone facilities; Buick-Pontiac-GMC grouped together; Cadillac, Hummer and Saab as premium channels but in many cases under the same owner. We'll work with our dealers to get in the right locations, with competitive facilities."

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