GM just sent out a press release outlining "further steps" they taking "to adapt its business to rapidly changing market conditions." The high points of Rick Wagoner's plan include:
∙ Reduction of salaried workforce via attrition and "other separation tools."
∙ Eliminating "annual discretionary cash bonuses for the company's executive group in 2008… For the company's top executive officers, it represents a reduction in their cash compensation opportunity of 75 to 84 percent. "
∙ Making "additional structural cost reductions… achieved through further adjustments in truck capacity and related component, stamping and powertrain capacity."
∙ "Revising its capital spending plan and reducing approximately $1.5 billion in expenditures versus prior plans… A major part of the reductions is related to the delay of the next generation large pickup and SUV program, as well as V-8 engine development and associated capacity."
∙ "Improv(ing) working capital…primarily related to the reduction of raw material, work-in-progress and finished goods inventory levels as well as lean inventory practices at parts warehouses."
∙ "Defer(ing) approximately $1.7 billion of payments that had been scheduled to be made to a temporary asset account over the balance of 2008 and 2009 for the establishment of the new UAW VEBA."
∙ "The GM Board of Directors has decided to suspend future dividends on common stock, effective immediately, which is expected to improve liquidity by approximately $800 million through 2009."
∙ "Undertaking a broad global assessment of its assets for possible sale or monetization."
∙ "Opportunistically access(ing) global markets to raise additional liquidity"
"The actions announced today are difficult decisions, but necessary to respond to the current auto market conditions," said Wagoner. "Even under conservative planning scenarios, GM is well-positioned to withstand the U.S. market downturn and emerge a stronger company. We have a solid position in the rapidly growing emerging markets, a global operating framework that allows us to respond to changes in the U.S. market, a commitment to technology leadership, and an ever stronger and competitive product line-up."