General Motors to cut back production as well

General Motors to cut back production as well

General Motors Corp has announced that they would also be trimming production. This announcement came just hours after rival Ford announced similar plans for a 21 percent cut in fourth-quarter production.

Both companies are facing serious drop in sales of their vehicles in the US market leading to built up of huge inventories.

GM chairman and CEO Richard Wagoner spoke on this decision: “I’m not sure that’s bad news. The fact is, you’ve got to build from market demand back. That’s what it seems to be these actions are all about.”

Wagoner added: “I think the fuel price situation has been a little surprising to everyone. It would have been hard to predict, for example, the current issues we have in the Middle East. These things hang out there. We have to react to that.”