GM sees $4 billion cost savings in 2006

GM CEO Rick Wagoner was optimistic today in a meeting with automotive analysts, forecasting about $4 billion in cost savings this year, as various initiatives to reduce structural costs start to take affect.
He has more work to do before GM returns to profitability, though - in 2005 GM lost $4.8 billion in just the first 9 months of the year.

Wagoner had no comment on Jerry York's suggestions earlier this week, which included halving the company's annual dividend payout - worth a net saving of more than $500 million.

Waiting for a whole closet-full of shoes to drop, including the outcome of GM's negotiations with Delphi, consumer reaction to its value pricing plan and its attempt to sell a controlling share in GMAC, Wagoner didn't even attempt to give any earnings guidance to analysts. However he did express relief to be entering a new year, saying, "I think it's safe to day that just about everyone at General Motors is happy to see 2005 behind us." Let's hope 2006 is a better year.

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