GM’s Wagoner: Making Progress

GM’s Wagoner: Making Progress

General Motors CEO Rick Wagoner told shareholders at Tuesday’s annual meeting that the automaker is making progress in its turnaround effort.

Wagoner said GM, which lost more than $12 billion in the past two years, has made "major progress" in its restructuring. GM has cut more than 34,000 jobs and closed 12 plants. Wagoner said those changes have slashed GM’s structural costs by $6.8 billion in 2006. GM is on track to reach its target of cutting those costs by an additional $2.2 billion this year, he said.

Wagoner said this year's goals include closing a deal for Delphi Corp. to emerge from bankruptcy and cutting GM’s health-care costs,  "a staggering $4.8 billion" in 2006, he said. He added that GM would be looking to the upcoming UAW negotiations to increase its cost-competitiveness.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.