GM To Close Plants, Cut Jobs

General Motors Corp. has plans of cutting about 25,000 jobs in the United States while closing assembly and component plants over the next several years. At an annual meeting with shareholders, GM's Chairman and CEO Rick Wagoner broke this news along with the fact that even though the company lost $1.1 billion in the first quarter, it expects to save more than twice that a year as it cuts costs. "Let me say up front that our absolute top priority is to get our largest business unit back to profitability as soon as possible," said Mr. Wagoner.

"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."

Today in morning trading on the New York Stock Exchange, General Motors Corp. shares went up 70 cents to $31.12. Chris is a staff writer for

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