GM (GM) Slashing Spending After Japan Disruptions

General Motors announced over the weekend its going to cut spending across the company they deem unnecessary to give them room to determine the extent of the disruptions from the natural disasters in Japan.

The move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan, a company spokesman said. The cost-cutting effort, which includes travel, took effect last week and will be in place for an undetermined period.

The news follows General Motors Corp.'s announcement Friday that two of three shifts will be canceled at a plant in Eisenach, Germany on Monday and Tuesday. Another plant in Zaragoza, Spain will remain closed Monday. The plants produce the Corsa compact car.

In the U.S., GM said Thursday it will halt production at its pickup plant in Shreveport, Louisiana, this week.

"The whole industry is still in the process of figuring out what the implications are from the disaster in Japan," said GM spokesman Klaus-Peter Martin.

GM closed Friday at $31.85, gaining $0.41, or 1.30 percent.




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