GM: No development spending in 2009

From Autoblog:

A story from the Crain sisters, Automotive News and Autoweek, reports that General Motors has cut product development spending for 2009 in an effort to save approximately $1.5 billion next year. Reductions in engineering, design and R&D work on future models has been rumored for the last week, possibly causing the delay (or death) of a few select models. However, the Camaro and Volt haven't been affected by the cuts (no surprise, since they're all but complete), and the new Buick LaCrosse, Chevrolet Traverse and Cadillac CTS Wagon should hit the market has planned, late next year and early in 2010.

To say that they are cutting all R and D is something that I am a bit perplexed by--I understand that the company is cash strapped to say the least, but cutting all funding to the future development is even riskier in the long run--because they are really putting even more eggs into their proverbial baskets with their existing models and, let's face it, the Volt. Yes, the new LaCrosse, Traverse, and CTS Wagon are decent and should do ok, but again--the slump that this company is facing won't be over for what experts say will be possibly 18 months, and then what? If you don't have R and D giving you more prospects in the future, you don't have much to stand on if those existing and planned models don't do extremely well.

Good luck, GM.

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GM: No development spending in 2009

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