General Motors Corp., struggling to rebound from last year's multi-billion dollar loss, will reduce its annual costs to develop new midsize cars by $1 billion through sharing parts, designs and factories.
Plants in North America, Europe and elsewhere will use the same chassis on models such as the Chevrolet Malibu sedan and Saab convertibles, Jim Wiemels, who oversees GM's global production, said during a conference yesterday in Dearborn, Michigan. The change will reduce spending on new midsize cars by a third, or $1 billion a year, GM spokesman Dave Roman said.
``They have opened up everything to see what's available in the global parts bin,'' said Rebecca Lindland, an analyst at Global Insight Inc. in Lexington, Massachusetts, who forecasts vehicle sales. ``There is a more cohesive environment now.''
The plan is part of GM Chief Executive Officer Rick Wagoner's strategy for restoring profits after a $10.6 billion loss in 2005 and winning back buyers lost to competitors such as Japan's Toyota Motor Corp. He intends to reduce annualized spending by $9 billion at the end of 2006.
``Wagoner knows he's in charge of a company that some people still don't think is going to be around much longer,'' Lindland said.
GM, the world's largest automaker, said today that its future pension and health-care obligations fell a combined $23.2 billion after 34,400 union workers took incentives to leave early.
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