It is taking a big hit smack dab in the middle of its recovery program.
In response, the company has had to make some drastic decisions, much of them involves cutting expenses. And there are a lot of them. First, it is suspending payment of dividends on its stock. Second it is reducing even more of its salaried workforce in North America. Third, it is reducing its capacity to make SUVs and pickup trucks in North America by closing more plants. Fourth, it is increasing its debt by another $2 billion. Fifth, it is cutting executive compensation packages. Sixth, it is delaying its contribution to the retiree healthcare fund -- the VEBA plan negotiated with the UAW.
All of these actions are expected to give GM $15 billion in extra cash so it can be liquid through the end of 2009.