General Motors Co. has halted all nonessential spending and travel companywide while it gets a better handle on the potential impact of Japan’s crisis on the company, the Wall Street Journal reports.
When the CEO of a large multinational sends out a companywide memo to hold off on any expenses that aren’t critical, things are dire. GM CEO Dan Akerson did just that, the Wall Street Journal says.
Supposedly, GM wants to get a handle on the parts situation. We have been following this unfolding story for a while. This morning, GM did not seem to be in a great hurry, and wanted to wait two weeks.
Now suddenly, all nonessential spending and travel are stopped companywide? Even during the darkest hours of GM, it did not skimp on T&E. Remember jetgate?
According to AP, (via the Minneapolis Star-Tribune), “the move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan.” The cost-cutting effort will stay in place for an undetermined period.
If this story is true and did not get mixed-up in the fog of war, then something bigger than Japan could be afoot.