GM to delay product development spending in 2009 and 2010

GM has already delayed the launches of the 2010 Cadillac CTS Coupe, Buick LaCrosse, 2011 Chevrolet Cruze and the next-generation Chevrolet Malibu. According to Automotive News, the General is now delaying nearly all of its product development spending in 2009 and in 2010.

As a part of a cost-cutting effort, GM will also cut spending on its engineering, design and development departments. Insiders say that the new cuts could save GM as much as $1.5 billion.

Tom Wilkinson, GM spokesman, refused to comment on the timeline of specific product programs but said that GM is going with what it considers high-priority first. He said that the Detroit automaker evaluates product programs monthly.


Source: Detroit News