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CEO says GM turnaround is on track

General Motors is making progress in its turnaround effort, CEO Rick Wagoner said Tuesday at its annual meeting, where 10 shareholder proposals were rejected, according to USA Today.

GM cut structural costs by $6.8 billion in 2006, and Wagoner told shareholders the automaker is on track to reach its target of an additional $2.2 billion in cuts this year.

He said this year's priorities include finishing a deal to let former parts subsidiary Delphi exit bankruptcy and cutting its own health care costs, which he said were "a staggering $4.8 billion" in 2006.

GM's shares, which lost 50% of their value in 2005, rose 58% last year, the biggest rise of the 30 stocks in the Dow Jones industrial average. Investors gained confidence in GM's turnaround as its annual net loss narrowed to $2 billion from $10.4 billion in 2005.

Posted by   at 10:09 AM to Companies | Permalink

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