GM announced $5 billion more in cost-cutting measures

General Motors Corp. has targeted $5 billion in cost-cutting measures in addition to $15 billion it already planned to conserve and save in a plan announced July 15.

Shortly before noon, GM said it will:

• reduce 2009 capital spending by $2.5 billion.

• Reduce GM North America structural costs by an additional $1.5 billion.

• Reduce working capital spending by an additional $500 million.

• And announce further salaried employment cost reductions by $500 million.

“Volatility in the world’s financial markets, tightening of consumer and business credit and historically low consumer confidence has created a very challenging environment," said GM Chairman and CEO Rick Wagoner. “Given the current lack of credit availability we must take further difficult `self-help’ actions."

Analysts believe it is all but impossible for GM to raise $5 billion through asset sales or debt raises, though GM is pursuing the sale of Hummer, ACDelco, and a plant in Strasbourg, France.