G. Richard Wagoner, Jr.
president & ceo, general motors corporation
Innovation and E-Business: "Playing the Game"
Rick Wagoner, the chief executive of General Motors told Reuters, following a luncheon of the Chief Executives' Club of Boston, that the entire auto industry needed to produce fewer vehicles. The announcement, which came a week after Ford Motor Co. and DaimlerChrysler lowered their production estimates, follows a 3.4 percent in light-vehicle sales among the Big Three. "Broad-based" and "sustainable production cuts must be made in the face of the slowing sales," stated Wagoner. "What we're all going to have to do is ratchet back production capacity, and that's painful," Mr. Wagoner said. "Once you swallow that, then you hopefully reach a steady state and lower level of production across the board."
Some analysts said they expected GM would have to make further production cuts, in tandem with higher incentives, to clear vehicle inventories.
Stories ran in the New York Times, Detroit Free Press and Houston Chronicle on December 8, 2000.