GM expects to cut more jobs in 2007

Mumbai: The 30,000 job cuts and plant closures that the world's largest automaker General Motors Corp, initiated in 2006 as a turnaround strategy, will continue unabated through 2007, with more cuts and forces more concessions from its major labour union, United Auto Workers Union (UAW).

GM, which lost $10.6 billion in 2005, cut more than 34,000 jobs, unveiled plans to close 12 plants and reduce recurring costs by $9 billion in 2006.

GM's chief executive Rick Wagoner said that he could not rule out the continued steps. He told reporters, "I think it'll be a lot more through attrition than buyouts, but I wouldn't rule it out.... there is going to be a continued need to improve productivity, to be competitive and to cover things like health-care costs," he added.

GM has not faced a strike since 1998 and the company and UAW have tried to build a collaborative approach in turning the company around. For GM the focus is on winding up many of the costly labour obligations written into past union contracts.

For instance GM's health-care costs the company around $5 billion annually — roughly $1,500 for every vehicle it sells compared with about $200 for Japanese rival Toyota Motor Corp, which sells only half as many cars as GM, but is poised dangerously close to overtaking it as the world's largest automaker.