Rick Wagoner Global Quotations

We are confronting a dramatic change in our industry and in the global competitive environment, and that requires us to look for additional ways to reduce financial risk and improve our competitiveness for the long term.

The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work. But these actions are necessary for G.M. to get its costs in line with our major global competitors.

With the ongoing globalization of GM's product development organization, and the implementation of our global architecture strategy, Bob felt he needed to devote his efforts to product development full time, and I agreed, ... Bob's legacy at GM will be in our future cars and trucks. It makes sense for him to devote his full energies to that critical task.

These actions are necessary for G.M. to get its costs in line with our major global competitors.

These actions are necessary for GM to get its costs in line with our major global competitors,

This is a difficult but necessary decision, and it was made only after the greatest deliberation. A number of other U.S. companies have already taken similar action in the face of these rising costs and increasing global competition. In particular, U.S. health-care costs continue to rise at high rates. When these benefits were conceived decades ago, no one could have foreseen the explosive cost inflation that we have been experiencing in recent years. These costs are simply not sustainable.

In order to improve financial results in 2006 and 2007, we are moving quickly to implement several important actions that will address these weaknesses in North America. And we have a good line of sight on the steps we need to take to further reduce structural costs on a global basis that will position GM for long-term success.

Don has played a pivotal role in strengthening GM's global manufacturing competitiveness, ... His contributions provide an important foundation for our future as we continue to bring these world-class manufacturing processes to new plants and existing facilities around the world.