GM to slash jobs, close plants

Speaking at its shareholder meeting today, General Motors Corp. Chairman and CEO Rick Wagoner said the company is eliminating 25,000 U.S. jobs by 2008 and closing plants to help bolster its North American operations.

The cutbacks are part of a strategy that includes role clarification for each of the company's eight brands, intensified cost reduction efforts, quality improvements, and health care cost reductions.

According to Wagoner, health care costs add $1,500 to each vehicle's cost, putting the company at a "significant disadvantage versus foreign-based competitors."

Wagoner did not disclose which plants will be closed. The company already has closed plants in New Jersey, Maryland, and Michigan this year.