Suzuki Motor buys back shares from GM
Tokyo: Suzuki Motor Corp. has bought back 91.09 million, or 16.8 per cent, of its own shares from General Motors Corp. in the open market for 227 billion yen ($1.93 billion). Suzuki had indicated that it would buy the shares back at 2,490 yen apiece.

GM is now left with 3.7 per cent of Suzuki's shares that carry voting rights, making it the Japanese company's sixth-biggest shareholder, Suzuki said.

Suzuki said on Monday it would hold onto the shares for at least a year to leave open the possibility of a repurchase by its restructuring US partner, which needs the cash to repair its balance sheet.

Shares in Suzuki were up 2.41 per cent at 2,550 yen in early afternoon trade.
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Volkswagen says cost cuts are do or die for the company
Wolfsburg: Volkswagen warned its workers that the company was doomed unless its unionized workers at its loss-making German plants accept a comprehensive restructuring program that included painful cuts in costs and jobs.

Chief executive Bernd Pischetsrieder is sticking to his hard line despite a boardroom split between shareholder representatives and labor leaders who have half the seats.

Finance chief Hans Dieter Poetsch said the "ForMotion Plus," was critically important which aims to eliminate considerable productivity deficits, to reorganize its non-core components business and reduce its overcapacities.

Losses to the tune of millions of euros at its western Germany plants, the highest labor costs in the industry and an earnings collapse in its two key foreign markets, the US and China, have kept the company reeling.

Pischetsrieder said up to 20,000 jobs at its core VW brand are at risk over the next three years as Europe's largest carmaker strives to reach a pretax profit target of 5.1 billion euros in order to at least earn its cost of capital.

The VW CEO's blunt message has unleashed a backlash among the powerful labor leaders that have a say in extending his contract.

VW chairman Ferdinand Piech said he knew of no one that could survive the united opposition from its workers' representatives on the board.
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GM announces changes to salaried pension
Detroit: General Motors Corp. is changing its pension benefits for salaried employees from a defined benefit plan to a plan that relies more heavily on employee contributions.

From Jan. 1, GM plans to freeze the accrued pension benefits for US salaries employees. Salaried employees hired on or after that date will be under a defined contribution plan and the company will contribute a certain amount to their pension fund. Salaried employees hired before Jan.1 will remain in a defined benefit plan but will get reduced benefits under a new formula.

GM said it was making changes to reduce its pension costs. The changes are expected to reduce GM's year — end 2006 pension liability by approximately $1.6 billion.

GM shares rose 15 cents to $19.96 in late morning trading on the New York Stock Exchange.
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