Officials with GM said the company will borrow two to three billion dollars as it adjusts to a declining U.S. market, get rid of some plants, and lay off salaried workers. All these changes are expected to raise $15 billion dollars to help turn around its North American operations. The company will also stop providing health benefits for salaried retirees.
"Tough actions that we really don't enjoy having to take, but the future of the company under these circumstances needs to be the thing that we look at first and foremost," said GM Chairman & CEO Rick Wagoner.
General Motors forecasts total U.S. sales of 14.7 million vehicles this year. That's down from 17 million three years ago.