Report: GM postponing product development spending
DETROIT (AP) -- An automotive trade publication reports General Motors is postponing nearly all of its spending on product development in 2009 and 2010 as part of a cost-cutting effort.
Automotive News, citing sources familiar with GM's plans that it didn't name, has reported on its Web site that the Detroit-based automaker also is cutting spending on engineering, design and development.
The report says General Motors Corp. hopes to save as much as $1.5 billion and that the introduction of key vehicles such as the new compact Chevrolet Cruze, due to start production in 2010, could be delayed.
GM spokesman Tom Wilkinson says the company isn't commenting on specific product programs, but continues to align resources behind highest-priority ones.
He says GM evaluates its product programs monthly.
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