GM management refuses to save the company's dividend

Director General of General Motors Rick Wagoner said yesterday that should be done to avoid bankruptcy the world's largest automaker. GM Guide for the first time 86 years had decided to refuse to pay the quarterly dividend and is considering selling some assets. Wagoner announced yesterday the output path of the crisis. Measures are designed primarily to serious cost reduction group, which should help save $ 15 billion by the end of 2009. It is this amount could save the largest producer of cars from the worst. General Motors is the fourth year, not profit. Last year its losses have reached $ 38.7 billion in early July, the company Merrill Lynch first started talking about the threat of bankruptcy GM. However, until the end of this year, the group still has the means to survive. At the end of March, GM's are at the disposal of $ 23.9 billion, plus the ability to get loans for $ 7 billion - of these funds should be sufficient, the company said. But Wagoner is preparing for another possible recession in the U.S. market. "Our progress is under threat because of the deteriorating economic situation in the U.S." - Rick Wagoner quotes newspaper FT. Last month, GM said that it will help to close four North American plants that produce trucks and SUVs. However, "in the last six weeks of sales in the U.S. market and economic situation in the country continued to deteriorate," - said yesterday the head of the automotive giant. The sharp fall in prices of cars GM, as well as speculation about a possible information about bankruptcy of the company have complicated the process of attracting additional funding. Olga Samofalova