GM Pledges for "Tough Actions" to Stay in Business

We already knew that General Motors was experiencing the toughest period in its history, with cost-cutting measures, viability plans and major departures turning into common things for those involved in the company. However, GM's new CEO Fritz Henderson is ready to apply even more harsh decisions against the economic downturn, hinting that more "tough actions" need to be taken in order to survive.

In an interview with Automotive News Editor-in-Chief Keith Crain, Editorial Director Peter Brown and News Editor Dave Guilford, Henderson explained that the American car manufacturer may turn to a new series of cost-cutting measures as they seem to remain the best way to cope with this economic chaos.

"The simple message I've asked my people is this: There has never been a successful turnaround in our business - ever! - that's done on only one side or the other. No one has ever cost-cut their way to prosperity," he said. "And on the other hand, there's no free deal here. You know, I can't tell you how many plans I've looked at that say, "We're just going to sell more, and everything is going to be OK." It doesn't work that way."

"Now you have to make judgments about what your forecasts are, but you get to do two things. You have to do two things, and that's our responsibility. One, you've got to take the tough actions - you can't shirk them. You've got to deal with them because you have to get that done."

Asked whether international divisions may seek financial support from the respective governments, Henderson clearly explained that "operations today are able to finance themselves," including those in Australia and Brazil.