GM announced major cost-cutting yesterday, focusing on stripping executive staff of bonuses and closing underperforming plants. The 20% reduction in salaried staff costs are going to come from the bonus reduction and cuts in pay level for many senior managers. Platform-level managers were asked to downstep as early as two months ago in preparation for this move. The white-collar staffing changes will flatten the organization, and actual job cuts are not expected to be large. Powertrain developers will continue to focus on small engines, with the new 1.4L gas and the small V6 diesel engine program launches on track. Both programs will receive additional funding. Marketing will shift from individual model promotion to model-launch programs and brand-identity protection. Planned contributions to the new UAW VEBA will be deferred. These changes will help the General, but it's going to be a rough ride through the next year.
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