US car maker General Motors has announced a restructuring plan which will cut employment costs by 20%.
The company also plans to sell up to $4 billion worth of assets and borrow at least $2 billion in a bid to boost its balance sheet by $15 billion next year. GM also said it would suspend its dividend to shareholders.
The restructuring plan has been sparked by high fuel prices, which have caused US consumers to shift away from trucks and SUVs. The weak US economy has also led to the lowest industrywide car sales in a decade.
GM's plans for savings include cutting white-collar jobs and some health-care coverage for its retired workers, eliminating executive bonuses for 2008, and reducing capital spending by $1.5 billion.
In early June, GM chief executive Rick Wagoner announced the company would close four North American truck plants employing about 100,000 workers and try to sell its Hummer brand in response to higher petrol prices. Many analysts believe the situation for the car industry has worsened since that announcement.
