Auto Industry Bad & Good-
GM halves dividend, cuts executive pay
TAVIA GRANT AND GREG KEENAN
Globe and Mail Update
General Motors Corp. said Tuesday it is slashing its quarterly dividend
in half and cutting the salaries of its senior executive team as the
world's largest auto maker struggles with billions of dollars in losses.
The dividend cut will reduce GM's yearly cash payout by about
$565-million (U.S.). The auto maker also plans to cut health benefits
for salaried retirees and evaluate ways to restructure its pension plan
for salaried U.S. workers.
GM shares slipped 7 cents to $23.27 in early trading in New York.
The GM actions follow a restructuring ‹ that includes plant closings and
the elimination of 30,000 jobs
ry/?queryToyota revs up plans for Ontario plant
To boost output and jobs significantly
AUTO INDUSTRY REPORTER
Toyota Motor Corp. is expected to announce today a 50-per-cent boost in
production at its new plant in Woodstock, Ont., and an increase in
initial jobs to 2,000 from 1,300 -- even before cement for the factory
has been poured.
The plant will start operating in 2008 with a plan to produce 150,000
vehicles annually, up from the original startup figure of 100,000 when
Toyota announced the $800-million investment last June.