GM To Cut Costs on Midsize Models

Washington DC August 8, 2006; The AIADA newsletter reported that General Motors announced yesterday that it will cut costs for new midsize car models by a third as it rolls out a system for sharing parts, vehicle designs and factories.

The change will cut spending by $1 billion, reports Bloomberg. Plants in three regions will be able to build 19 variations of brands and styles such as Saab convertibles and Chevrolet Malibu sedans, said Jim Wiemels, GM vice president of global manufacturing engineering.

This system is part of GM CEO Rick Wagoner's restructuring plan for the automaker