GM Cutting Spending
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All Americans have now felt some pinch of rising prices in our economy. Not only are individual households experiencing financial difficulties, but also businesses,
from family owned to major corporations. General Motors is no exception. Since 1908, General Motors has thrived in the automobile industry and from 1930 to 2007 maintained
the reputation of being the biggest automobile manufacturer. However, General Motors has some changes in its future.
With rising gas prices and credit tightening, automobile sales in the United States have slowly dwindled. Production of vehicles, as well as research and development for
new innovations, are being reduced, especially at General Motors. With an 11.4% reduction in vehicles sold globally in the third quarter of 2008, General Motors has postponed
their innovations for the 2009 and 2010 production years, in order to cut their corporate costs. This reduction is expected to save General Motors $1.5 billion while it
focuses on creating smaller, more compact vehicles. Their long awaited innovations, such as the Volt and Chevrolet Camaro, will still be introduced in 2009 and 2010. However,
future product research and development, especially regarding full-size pickup trucks and sport utility vehicles, will be postponed temporarily.
General Motors will now aim its success at its ability to develop more compact vehicles, such as the Cruze. General Motors plans on increasing the sales here in the United
States focusing on what will appeal to Americans. In order to ensure the future financial stability of its company, its goal now is to focus its attention on what consumers
want, which right now tends to be fuel efficient or alternative fueled vehicles. With the global automobile market sales dwindling,
General Motors is sure that postponing
future research and development on new automobile prospects will provide the right direction for the company, as well as emerge over Toyota to reestablish themselves as the
biggest automobile manufacturer.