GM Restructuring Could Include Large Job Cuts

July 15, 2008 9:16 a.m. EST

Detroit, MI (AHN) - General Motors Tuesday announced wide-ranging restructuring as the auto-maker attempts to battle back from slower sales and a sluggish economy. Among the changes, reported job cuts and closings.

"We are responding aggressively to the challenges of today's U.S. auto market," GM CEO Rick Wagoner said in a statement. Wagoner said GM will increase liquidity by $15 billion through 2009. Analysts said GM could report a $5 billion drop for the second quarter alone.

The top U.S. automaker has seen its market capitalization fall 60 percent to $5.31 billion since the start of 2008.

Job cuts are expected to be announced related to GM's recent plans to reduce production of trucks in favor of smaller cars. Last month, the automaker said it would shutter four pickup truck and SUV plants by 2010. Those closings could expand to other plants, including ones building engines, transmission and other parts, the Wall Street Journal reported Tuesday.

As another cost-saving measure, GM is reportedly considering selling its 49 percent of GMAC auto financing division.