General Motors announced that it has cut $10.7 billion in annual costs, moving the company closer to a planned 2010 profit. The cost savings can be attributed to reduced interest payments from a reduction of debt, reduction of union retiree bills, and a $6.7 billion saving in cutting jobs, closing plants, and shutting down brands.
Meanwhile, the costs savings will be used for vehicle development (good thing!) and marketing. Redesigns of the Chevrolet Silverado and GMC Sierra are expected, and could cost as much as $1 billion.
In addition to 2010 profitability, CEO, Ed Whitacre’s goal is to keep GM’s market share at 20 percent. This will be tough to achieve, but possible as GM improves quality, its product lineup, and changes the overall perception of its customers.
Read the full news story at Bloomberg.
Tags: 2010, Chevrolet, General Motors, GM, GMC, profit, Sierra, Silverado
