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.