GM slashing 30,000 jobs, closing plants

The automaker could be facing a strike at Delphi Corp., its biggest parts supplier, which filed for bankruptcy protection last month. GM spun off Delphi in 1999 and could be liable for billions in pension costs for Delphi retirees.

GM also is under investigation by the U.S. Securities and Exchange Commission for accounting errors.

Last week, after the automaker’s shares fell to their lowest level since 1987, Wagoner sent an e-mail to employees saying the company has a turnaround strategy in place and has no plans to file for bankruptcy. Wagoner repeated that Monday, and added that he continues to have the board’s support and hasn’t considered stepping down.

“I have given no thought to anything but turning the business around,” Wagoner said. “I wasn’t brought up to run and hide when things get tough”

Ford also cutting jobs
GM is not the only U.S. automaker faced with the need to cut costs.

Last week, Ford Motor Co. told employees it plans to eliminate about 4,000 white-collar jobs in North America early next year as part of a restructuring plan. Ford said the cuts will be made in part through attrition and elimination of some agency and contract positions.

The plans were outlined Friday in an e-mail to employees from Mark Fields, president for the Americas.

The cuts will be in addition to 2,750 North American salaried jobs that Ford earlier said it wanted to cut by the end of 2005. Ford started the year with about 35,000 salaried workers in North America.

Dearborn-based Ford reported a third-quarter loss of $284 million, including a loss of $1.2 billion before taxes in North America.

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