Late Thursday evening, the U.S. automaker bailout bill failed to pass through the Senate. The legislation is dead and there are no plans for another bill to go through the process until the end of the year. To quote Senate Majority Leader Harry Reid, this will be "a very, very bad Christmas" for many Americans.

Over the past day, Senators have tried to resolve the House-approved bill so it could pass Senate Republican muster, but reports suggest that the UAW was unwilling to accept GOP demands that workers agree to parity in pay and benefits.

News of the failed bill has already spread to markets across the Pacific, with the Nikkei index nose-diving over 6%. Things on this side of the world are bound to be worse when trading on the New York Stock Exchange begins tomorrow.

According to reports, General Motors has got bankruptcy and restructuring advisors on speed-dial in preparation for the bad news and Chrysler has already retained CH11 counsel.

Countless economists and industry analysts are warning that if any one of the Detroit 3 goes under, it will spell disaster for an economy already suffering in a recession. Video of the vote is embedded after the jump. More to follow tomorrow.

[Sources: Reuters, Detroit News, Automotive News - Sub. Req.]

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A story has surfaced on the Latin American Herald Tribune (a publication we hadn't previously heard of) stating that General Motors was planning to invest $1 billion in it's Brazilian operations to update its South American products. So far, that part of the story is true. However, that's where the truth apparently ends. The story goes on to say that GM plans to use money obtained from the proposed government bailout package to pay for the Brazilian investment.

We contacted General Motors to check on the story and spokesman Richard James replied, "I don't know if something got lost in translation but Jaime Ardila, President of GM Brazil did NOT say that funding for GMB projects would come from the US financial aid package. GM Brazil has $1 billion in investments that have already been approved but they will be financed by our Brazilian operations through local sources."

Just as Opel (GM's German division) is going to the German government for assistance, GM Brazil-Mercosur is raising capital in that country. During the congressional hearings this week, CEO Rick Wagoner also indicated that GM operations in different regions are each funding projects locally in response to a question about a recent expansion in Russia. It appears that any money that GM gets from the US government will stay here.

[Source: Latin American Herald Tribune]

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In case you missed it this morning, General Motors CEO Fritz Henderson made some big news just one month after the "new" GM emerged from bankruptcy protection.

First of all, Henderson announced that the GM FastLane blog would now be used to solicit feedback on new designs directly from customers. Over the next two years, GM will be launching 25 new models in its four remaining "core" brands (Chevrolet, Cadillac, Buick and GMC).

After the webcast ends, we'll going over to the design dome for a preview of the new large XTS and small ATS models from Cadillac. The latter will slot in below the CTS and be aimed directly at the BMW 3-series with rear- and all-wheel drive. The XTS is expected to be based on a stretched Epsilon II platform.

The biggest bombshell is Henderson's announcement that the "230" marketing campaign floating around for the past week is related to the 2011 Chevrolet Volt. The EPA has released a new methodology for determining a draft fuel economy standard for extended-range EVs like the Volt, and under this new procedure, the Volt will have a composite urban fuel economy rating of 230 mpg! On the electric side, the Volt will consume 25 kW/hours per 100 miles. That makes the Volt the first car ever to get a triple digit fuel economy rating.

According to Frank Weber, vehicle chief engineer for the Volt, the number is based on combined electric only driving and charge sustaining mode with the engine running. He declined to get specific about the proportions, but did say that the urban cycle would be predominantly EV only. The EPA has been studying real world vehicle usage and is developing the formulas to try and provide a representative number of what most customers could expect to achieve. In addition to the composite number, the new EPA stickers will likely also get numbers for mileage in charge sustaining mode and electric efficiency in EV mode.

Stay tuned for more news from this morning's event as it happens.

[Source: General Motors]

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General Motors is probably swimming in ideas and getting another thousand offers every day on how to turn the company around – there are fifteen pages of responses on the Tell Fritz site alone, and those are just the questions the GM CEO has answered. Add the company's recent advertising issues to that, and the internal suggestion box is most likely brimming as well.

Enter The Blake Project, a brand consultancy firm that is offering GM $100,000 worth of time for free. That won't include economy travel expenses, but will include a day with the firm's three-man team of Jack Trout, Brad VanAudken, and Mark Ritson, to "share insights, ideas and expertise."

What might those insights and ideas be? Some of them were looked at in a piece called "New Brand Strategies for GM." The first task given is to define the brands, e.g., Chevrolet should stand for something like "Good value, variety and heritage," instead of "big, small, expensive, cheap, truck, van or sports car." Buick should "stop making cheap Buicks," and Cadillac "can never be a prestige car. The fancy imports dominate that category." Is that glimpse worth setting aside a day of GM's time? If anyone at the General thinks so, click the link below...

[Source: Branding Strategy Insider]

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General Motors has finally added the 2-Mode Hybrid powertrain to its top-level GMC Yukon Denali. There aren't any mechanical changes to the gas-electric drivetrain that's been available since 2008 in the standard-grade Yukon and its platform mates, the Chevrolet Tahoe and Cadillac Escalade. All of which means we'll see a 6.0-liter Vortec V8 engine with 332 horsepower and 367 lb-ft of torque and up to a 6,200-pound towing capacity.

According to GM, the hybrid hardware is mostly contained in the 2-Mode Electrically Variable Transmission, which features twin electric motors powered by a 300-volt nickel metal hydride battery pack. Expect EPA fuel economy ratings of 21 city, 22 highway for two-wheel drive models and 20/20 when equipped with four-wheel drive.

As far as mechanical changes go, the Denali Hybrid will bring the first application of GM's MagnaRide suspension system to the Yukon. As you'd expect in a top-level SUV, the Denali Hybrid will come fully loaded straight from the factory – the only three options will be a sunroof, rear-seat entertainment DVD system and side blind spot alert mirrors.

PRESS RELEASE:

GMC YUKON HYBRID LINEUP EXPANDS WITH UNIQUE YUKON DENALI HYBRID

New for 2010

* New exterior colors: Taupe Grey Metallic and Sheer Silver Metallic replace Blue Granite Metallic, Silver Birch Metallic and Deep Ruby Metallic
* USB connectivity in center console, enabling stored audio files to play through the audio system and battery charging for some handheld devices

The GMC Yukon Hybrid broke ground with the world's first production 2-Mode full hybrid propulsion system, which on the 2WD model offers 21 mpg in city driving – a 50-percent improvement over non-hybrid models. The lineup now includes the distinctive Yukon Denali Hybrid, which infuses a new level of luxury into the efficient utility vehicle.

Along with exceptional fuel economy, the Yukon Hybrid and Yukon Denali Hybrid deliver full-size capability – up to 6,200 pounds (2,812 kg) of towing capacity (2WD) and standard eight-passenger seating capacity.

Yukon Hybrid models are built on GM's full-size SUV platform, which incorporates features such as a fully boxed frame, coil-over-shock front suspension, rack-and-pinion steering and a premium interior that bolsters the vehicle's comfort, quality and capability. Wide front and rear tracks enhance handling and lower the center of gravity for a more confident road feel.

The Yukon Hybrid was designed with safety in mind. It delivers a 360-degree safety system of occupant protection and crash-avoidance technology, with features such as standard StabiliTrak stability control system with rollover mitigation technology. For 2010, the long list of standard safety features is enhanced with the addition of front seat-mounted side air bags on all models.

Yukon Denali Hybrid details

The Yukon Denali Hybrid rides on unique 22-inch, eight-spoke, flangeless chrome wheels that make a stylish Denali appearance statement.

Inside, designers filled the cabin with luxurious amenities such as standard 12-way power, heated/cooled leather-appointed perforated front seating and heated, second-row, leather-appointed bench seating. Buyers may choose an Ebony or Cashmere interior. The only three options on this fully equipped vehicle are a sunroof, rear-seat entertainment DVD system and side blind zone alert mirrors.

Enhanced connectivity includes standard OnStar with Directions & Connections and Turn-by-Turn Navigation, navigation radio with rear camera system, a Bose Centerpoint Surround Sound System and three years of real-time XM NavTraffic.

A comprehensive safety package of crashworthiness and crash-avoidance features includes front- and side-impact air bags, anti-lock brakes and StabiliTrak with traction control. The Yukon Denali Hybrid also is equipped with GM's MagnaRide suspension, the first application of this advanced technology in a Yukon. MagnaRide uses magnetic particles in the shock absorber fluid to adjust the damping rate of the shock absorbers – based on road conditions and vehicle dynamics – to help keep tires in contact with the road.

Patented, industry-leading hybrid technology

The Yukon Hybrid's fuel-saving performance is derived from GM's advanced Electrically Variable Transmission (EVT) and 300-volt nickel-metal hydride Energy Storage System (ESS), which work with the standard 6.0L V-8 gasoline engine with Active Fuel Management (AFM) and late intake valve closing (LIVC) technology. GM's hybrid technology system not only enables the Yukon to launch and drive up to 27 mph (43 km/h) on electricity alone, it allows the Vortec 6.0L V-8 engine to operate in its more economical V-4 mode for longer periods.

As part of the vehicle's emission control system, the ESS is warranted for eight years/100,000 miles.

In the Yukon Hybrid and Yukon Denali Hybrid, the hybrid system itself generates the electricity to propel the vehicle. When the brakes are applied or the vehicle is coasting, the electric motors in the hybrid system create electricity and store it in the 300-volt battery. This electricity helps move the vehicle.

The hybrid system provides seamless, dependable power on demand in an efficient package. In fact, its electric motor is less than half the size of those in single-mode hybrid systems. This technology was developed and is still used in fleets of hybrid transit buses in more than 70 North American and European cities. Scaled down for use in passenger vehicles, the two-mode system delivers fuel savings where it is needed most – in large vehicles with high levels of capability. The two-mode system was first introduced on the 2008 Yukon Hybrid. It is a core part of GM's energy diversity efforts, centered on reducing dependence on petroleum, improving fuel economy, reducing emissions and minimizing the automobile's impact on the environment.

Quiet and smooth

Integration of the hybrid system on the Yukon is seamless – the battery pack is beneath the second-row seat – and delivers a quiet driving experience. Contributors to this include:

* Specific exhaust system and resonator tuned for the 6.0L engine's Active Fuel Management operation
* Additional engine intake induction tuning for reduced interior noise and pleasing sound quality
* Low-rolling resistance, "quiet-tuned" P265/65R18 tires for reduced road noise
* Electrically driven 300-volt air conditioning compressor reduces vibration and allows the standard, tri-zone HVAC system to cool the passenger compartment even when the gasoline engine is shut off
* Electrically driven 42-volt variable-assist power steering reduces vibration and provides up to a 0.5-mpg fuel economy improvement by reducing parasitic losses common in belt-driven hydraulic systems
* Energy Storage System (ESS) cooling system internal fan is tuned to be quiet at low vehicle speeds.

Along with quietness, the Yukon Hybrid also delivers exceptional driving smoothness, thanks to specifically tuned shocks.

Trailering performance

In addition to increased fuel economy, the Yukon Hybrid's electrically variable transmission also provides tremendous trailering capability, enhancing driving smoothness and quality when towing.

Electric drive is enabled up to 27 mph (43 km/h), saving fuel even when the truck is towing a trailer.

The EVT incorporates grade braking and tap up/tap down shift control. It also benefits towing on curves or lower-speed back roads, as exceptionally smooth gear transitions eliminate the "shift shock" torque disruption that can occur during abrupt shifts, such as when slowing or braking.

In addition to the eight-year/100,000-mile warranty on the Yukon Hybrid's Energy Storage System, GM's five-year/100,000-mile Powertrain Limited Warranty continues to make GM a better choice for customers. GM's coverage focuses on the complete ownership experience and includes other provisions that competitors do not offer, including transferability to the next owner, more complete coverage of parts, and coverage for new and certified used vehicles. In addition, GM offers complementary courtesy transportation and roadside assistance.

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When the 2010 GMC Terrain begins rolling out of General Motors' CAMI assembly facility in Ingersoll, Ontario and into dealerships this September, the new CUV will be clutching a $24,999 sticker price (including a $745 destination charge). For that sum, buyers will get GM's latest direct injected four-cylinder engine, in this case displacing 2.4-liters and producing 182 horsepower and 174 pound-feet of torque.

Perhaps more importantly, this engine manages to deliver an EPA-estimated 32 miles per gallon on the highway, a class-leading figure. Also available will be a 3.0-liter direct injected V6 engine with 264 horsepower and 222 pound-feet of torque, a GPS navigation system and a rear-seat DVD infotainment system. The least expensive all-wheel-drive model will go for $26,745.

Standard safety equipment includes six airbags, StabiliTrak vehicle stability control and GM's excellent OnStar service. On the technology front, every GMC Terrain will come equipped with a rear-view camera system, six-speaker AM/FM/CD audio system with USB connectivity and XM satellite radio. Stepping up a few notches to the top-rung SLT2 trim will bring leather seating surfaces, an upgraded sound system from Pioneer, power liftgate and a sunroof for $29,995.

PRESS RELEASE:

GMC Announces Pricing on All-New Terrain

Well-Equipped Five-Passenger Crossover to Start Under $25K

* 2010 GMC Terrain FWD starts at $24,995; AWD version at $26,745
* Terrain offers class-leading fuel economy/rear-seat legroom with standard premium features
* Terrain arrives in GMC dealerships in September

DETROIT - GMC has announced that its all-new Terrain five-passenger crossover will arrive in showrooms in September sporting a starting price of $24,995 for the front-wheel drive model. An all-wheel drive model starts at $26,745. Both prices include a $745 destination and freight charge.

"The Terrain allows us to build on the evolution we started with the Acadia, applying the distinctive styling and capabilities that have always been a part of the GMC DNA to smaller, more fuel efficient vehicles that customers are seeking in today's rapidly changing market," said Susan Docherty, GM North America Vice President, Buick-Pontiac-GMC. "We think Terrain is a bold statement of GMC's key role within the reinvented General Motors."

The base SLE1 model comes standard with GM's new 2.4L direct-injection engine and six-speed automatic transmission that delivers EPA-estimated highway fuel economy of 32 miles per gallon while offering a unique MultiFlex rear seat configuration that can optimized for either class-leading passenger legroom or nearly 64 cubic feet of cargo space behind the front seats. The base price also includes unexpected standard features, such as an integrated rear-view camera system and six-speaker AM/FM/CD audio system with USB connectivity and XM satellite radio service, along with a full suite of safety equipment, including six airbags, StabiliTrak vehicle stability control, and OnStar.

The top-of-the-line SLT2 trim level, which features leather seating, a premium Pioneer sound system, a power liftgate, sunroof and a special chrome appearance package, starts at $29,995 (including DFC). The Terrain also offers a powerful 3.0L direct injection V6 engine and a host of optional features like integrated navigation system and a rear-seat DVD infotainment system.

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The die is cast: General Motors has filed for bankruptcy. As expected, the automotive giant filed for Chapter 11 bankruptcy protection this morning in a New York court, listing $82 billion in assets and $172 billion in debts.

As we told you earlier, the century-old company will gain extensive assistance from the U.S. government, the former chipping in $30 billion in financing (GM has already received over $19 billion), that latter of which is expected to work extensively with the automaker as it goes through bankruptcy proceedings that will see the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.

According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker. However, Capitol Hill will get the chance to influence company proceedings, as it will vote on core issues of governance that include "selecting the company's board of directors and major corporate transactions." While that may not equate to day-to-day management decisions, the government will certainly have the ability to influence company plans through appointments and such decision-making processes.

You can read more about the filing and the ramifications at the link below.

[Source: Detroit Free Press]

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General Motors' bankruptcy endgame appears to be at hand, with word coming out that the automaker will indeed file for Chapter 11 protection early on Monday morning, which in turn is expected to trigger $30.1 billion in U.S. government loans. That funding will arrive on the heels of the $19.4 billion GM has already received since late last year, and Canada is expected to chip in an additional $9.5 billion. In exchange for that $30.1 billion in financing, Capitol Hill will receive a 60% share of GM, while Canada's investment will reportedly net it a 12% stake.

In related news, Automotive News is reporting that GM will appoint Al Koch to a newly created chief restructuring officer post. Koch, a corporate turnaround expert, has already been working with GM since January through his advisory firm, AlixPartners LLP. According to AN, Koch will oversee "bad" GM – that is, the liquidation of assets deemed to be dead weight in the drive to a leaner, more competitive GM (think: Hummer, Saturn, Saab, etc.). Recently minted GM CEO, Fritz Henderson, will continue to lead the corporation and, of course, all warranties will continue to be honored.

As part of the Chapter 11 bankruptcy proceedings, GM will see its stock-trading ticker removed from the Dow and S&P 500 on Monday, with those who have still been stubbornly holding on to stocks effectively losing everything.

President Obama will address the nation on GM's historic bankruptcy beginning at 11:55 a.m. EDT, with Fritz Henderson slated to address media members at around 12:15 p.m. in New York.

[Source: Automotive News]

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While GMC's new-for-2010 Terrain crossover may be all but identical to Chevrolet's Equinox, one look at this bluff-faced polarizing design will tell you that badge-engineering wasn't part of the program at General Motors. Yes, both vehicles share the same platform, the same engine choices and even the same suspension calibrations, but the in-your-face look here is likely to inspire love-it-or-hate-it reactions. We'll let you decide on which side of the fence you sit, with one caveat: It is often the case that certain cars look better in the metal than on screen or in photographs. We were invited to GM's Design Dome for a media backgrounder, and after being in-and-around the vehicle, we profess that we can't make the same case.

Controversial aesthetics aside, the 2010 Terrain looks to have the goods, including a new 2.4-liter four-cylinder engine on the base model that delivers 182 horsepower and 174 pound-feet of torque. Like its Chevy stablemate, this model is tipped to deliver 30 miles-per-gallon on the highway, a very handsome figure for this class. Interestingly, the four-banger features noise-canceling technology to mute undesirable sound characteristics and a driver-selectable Eco button that remaps the throttle responses, shift patterns and torque converter lockup speed to improve fuel economy.

The more powerful engine choice is a 3.0-liter direct-injection V6 engine that develops a healthy 264 horsepower and 222 pound-feet of torque. GM says six-cylinder buyers can expect to achieve 18-mpg city and 25 on the highway. Interestingly, the noise-canceling circuitry is only included on the Terrains equipped with the 2.4-liter. Models are available in front- or all-wheel drive trim, and a six-speed automatic is the transmission no matter what engine (or how many driven wheels) you choose.

This model is effectively a Pontiac Torrent replacement (that model is going away as GM figures out what to do with its affordable performance brand), albeit one made for GMC's truck-oriented audience. As such, it has a much more masculine exterior, with its triple-element grille, U-pattern hood, massive squared-off fenders, and a markedly different greenhouse. To our eyes, the Terrain's front-end looks almost out-of-scale with its footprint, or perhaps rather like some of the fuel-cell or hybrid conversions we've seen, in part because the front is so bluff and the lower blacked-out air dam rides rather close to terra firma for aerodynamic reasons. The rear-end is decidedly less controversial and nearly minivan-like, with Toyota Sienna-like taillamp clusters and paint-by-numbers "ruggedizing" cues.

The interior is leaps and bounds ahead of the outgoing Equinox/Torrent pairing, with tons of available options including a dual-screen rear entertainment, Bluetooth, a rear-backup camera, and a power liftgate that adjusts for low garage clearances. In general, the dashboard is nicely laid out (though that center stack looks a bit button-happy) and we found plenty of room up front to get comfortable while still leaving enough space for kids and adults sitting behind us. Nice features include a sliding rear seat which allows one to prioritize seat comfort or cargo room as needs dictate, and a center console big enough to swallow a laptop computer. One area of obvious cost-cutting on the model we were shown was that the nice contrasting red door panel stitching up front is not repeated for rear-seat passengers, although it is present on all seats.

GMC, as you will recall, only recently made its first foray into the crossover market with its Lambda-platform Acadia three-row CUV, and this new model figures to be the division's entry level model when it debuts in dealers in late Summer. GM has yet to announce pricing, but we expect it to be priced nominally higher than its Chevrolet counterpart to reflect its slightly elevated equipment levels and GMC's spot in the company hierarchy.

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In addition to the Corvette Centennial Concept, Chevrolet showed three more AUTOBOTS at the Chicago Auto Show that will make their big screen debuts in the upcoming Transformers: Revenge of the Fallen live action flick, along with one that we're all very familiar with. While we've seen images of the Chevy Volt on the Transformers set, this is the first time that GM has displayed the vehicle for public consumption. This is no show car, as the vehicle on display showed significant wear and tear from its day job. In robot form, the Volt will be known as Jolt, which makes us hope for some shocking footage this summer.

The other two vehicles were the Chevy Beat, which will be called the Spark when it enters production soon, and the Chevy Trax. These two vehicles will be known as Skids and Mudflap respectively, and we're hearing these two 'bots could provide a bit of comic relief to what will otherwise be a sobering storyline. Lastly, we have the yellow and black Camaro, aka Bumblebee, which was represented in both car form and in 17-foot-tall robot form.

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Nearly lost in the hubbub at this morning's GMC-Buick press conference here at the Detroit Auto Show was GMC's new-for-2011 Acadia Denali. This is the first time that GMC has extended its upscale Denali trim to a crossover, but they haven't changed the formula just because the designation is no longer exclusive to body-on-frame. As ever, Denali equates to a modestly swankier interior (mahogany trim, perforated leather heated and cooled seats, additional ambient lighting), along with seemingly every other option, including sat-nav, Bluetooth, three-zone automatic HVAC, heads-up display and the obligatory gigantic sunroof.

On the outside, trainspotters will be able to spot the Denali by its monotone paint (Summer White as seen here, Quicksilver Metallic, Carbon Black, Red Jewel Tintcoat or White Diamond Tricoat), honeychrome grille (yeah, we said honeychrome), along with model-specific fascias and polished six-spoke 20-inch wheels.

[Source: GMC]

SUV

Feast your eyes on the next Pontiac Vibe GMC Granite concept. We have to wonder if this car was originally designed to slot into Pontiac lineup before that brand was axed, as it doesn't really seem to fit into the Professional Grade image that GMC has used as a tagline for ages. Or, it could be that General Motors really is considering expanding its GMC brand a few notches down in size.

Whatever the case, we think the Granite is a pretty neat little addition to the burgeoning boxy-but-good small car market here in the States as currently defined by the Scion xB, Kia Soul and Nissan Cube. Unlike those production machines, though, the Granite is a bit tougher in execution, kinda-sorta like the Ford Synus concept from the 2005 edition of the Detroit Auto Show.

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The pain just keeps on coming for workers at General Motors. The company confirmed this morning that it will eliminate 10,000 salaried positions around the world before the end of this year. That will take GM's global white collar staff from 73,000 down to 63,000. Of the 10,000 heads to be cut, 3,400 will be in the United States where the company currently has 29,500 white collar staff. Those jobs will be eliminated by the end of April through another program of buyouts.

Those that remain in their jobs after May 1 will be taking home less in pay every week. From May 1 through the end of the year, those in executive positions will see a 10% cut in base pay. Those at lower pay grades will see salary cuts of 3-7%. Whether the cuts remain in place into 2010 will depend on the state of the business at the end of this year. In this economy, a job with 5% less pay is probably better than no job at all, but it still sucks.

[Source: General Motors]

PRESS RELEASE

GM to Reduce Salaried Employment Levels

DETROIT -- GM is notifying its employees that it will reduce salaried employment globally from a current level of 73,000 to approximately 63,000. These reductions are expected to take place in 2009.

These difficult actions are necessitated by a severe drop in vehicle sales worldwide and by the need to restructure GM for long-term viability. GM outlined the need for the reductions in its restructuring plan submitted to Congress on December 2, 2008. The announcement this week begins implementation of this aspect of the plan.

Salaried employment reductions will vary by global region, depending on the staffing levels in the region and market conditions. Details of the reductions and separation programs will be shared directly by regional leadership with the affected employees.

In the United States, approximately 3,400 of GM's 29,500 salaried employees will be impacted. These reductions will be made using GM separation programs and policies, which provide for severance payments, benefit contributions and outplacement assistance. The majority of the reductions are expected to take place by May 1, 2009.

GM also announced a temporary pay reduction for a majority of U.S. salaried employees. This begins May 1, and will be effective through the end of the year, when it will be reviewed. In the U.S., executive employees will have their base pay reduced by 10 percent, and many other salaried employees will see reductions of 3 to 7 percent.

Other countries are currently reviewing compensation and benefits for salaried employees.

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