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GM's Cost-Cutting Almost Completed

General Motors' fight with the economic chaos is about to end as the company is now entering the last rounds of the huge cost-cutting process it started earlier this year. Still, the US-based manufacturer is encountering problems from the unstable US economy and unemployment and it proves a lot more difficult to bring buyers back in showrooms than initially believed.

Fritz Henderson said according to a report by Reuters that the new GM's board expects to close the cost-cutting moves by the end of the year. Furthermore, General Motors hopes to close deals to sell both Saab and Hummer by December 31, which would allow the company to concentrate on the 2010 lineup.

Henderson said that negotiations with Sichuan Tenzhong Heavy Industrial Machinery Co. representatives over the sale of Hummer continues this week, with both parts hoping to get the final signing in the next few months.

"The buyer is very interested in getting the deal closed,"
Henderson explained. "The new board wants us to complete the restructuring actions as much as possible by the end of (2009)," Henderson said on a conference call with reporters and analysts. "They are pushing us to move faster on all the fronts."

As part of GM's restructuring process, the vice president for US sales, Mark LaNeve, will leave the company on October 15 to continue with another non-automotive entity.

"It's with very mixed emotions I confirm that Mark LaNeve has elected to leave General Motors on October 15 to pursue another opportunity with a non-automotive company. Mark has contributed significantly to GM in several key positions, including transforming the Cadillac brand and leading the vehicle sales, service and marketing organization during one of the most challenging periods in GM's history,"
Henderson said in a release announcing the departure.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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