GM cuts unnecessary spending after Japan disaster

3:34 PM, Mar 19, 2011   |    comments
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NEW YORK (AP) -- GM is cutting unnecessary spending companywide as it assesses the impact of production disruptions from the earthquake and tsunami in Japan.

A company spokesman said the move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan. The cost-cutting effort, which includes travel, took effect last week and will be in place for an undetermined period.

The news follows General Motors Corp.'s announcement Friday that two of three shifts will be canceled at a plant in Eisenach, Germany on Monday and Tuesday. Another plant in Zaragoza, Spain will remain closed Monday. The plants produce the Corsa compact car.

In the U.S., GM said Thursday it will halt production at its pickup plant in Shreveport, Louisiana, next week.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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