According to the Wall Street Journal, General Motors is going to cut its $2 per share annual dividend in half, and cut executive salaries. The dividend cut will reduce the cash paid by about $565 million.
Cuts are also being planned for the health benefits for salaried retirees. GM will be capping its contributions to their healthcare at the 2006 amount paid. This should save GM about $900 million per year.
GM’s worldwide auto business had a loss of $11.4 billion in 2005.