GM says to spend $900 million on capacity adjustments
DETROIT (Reuters) - General Motors Corp GM.N said on Thursday it expects to spend $900 million over the next few years to adjust its manufacturing capacity, including closing plants and reducing output.
The No. 1 U.S. automaker, in its quarterly report filed with the U.S. Securities and Exchange Commission, said it plans to spend $100 million in 2008, $200 million in 2009, and $600 million after 2009.
GM, which posted a $15.5 billion net loss in the second quarter, announced in July that it planned $10 billion of cost cuts, including eliminating white-collar jobs, retiree health-care coverage and executive bonuses for 2008.
The company is realigning its North American production to reflect a U.S. auto market reeling from an oil shock being compared with those of the 1970s. GM plans to close four North American truck plants and add shifts at two U.S. plants that build more popular cars that get better mileage.
GM also said it expects to spend $300 million in 2008 on buyout programs to cut its white-collar costs by 20 percent.
(Reporting by Peoria Gupta; Editing by Braden Riddell)
