Originally Posted by AutoBlog

GM CEO Rick Wagoner announced sweeping organizational challenges designed to cut costs by $15 billion by the end of 2009. The Detroit automaker is looking reduce costs in an increasingly difficult market that could drop to 14 million units per year with fewer SUVs and trucks leaving dealer lots. Among the cost cutting measures, GM plans on reducing organizational costs by $10 billion, and another $5 billion by selling assets and working in the capital markets. Here are some of the highlights from the press conference:

• Reduce salaried employee expenses by 20 percent through retirements, voluntary separations, buyouts, and other separation initiatives
• Cut all salaried retiree health care after age 65, and use the over funded retirement fund to increase pension pay
• No raises through 2009
• Executive discretionary bonus elimination
• Reduce sales and marketing expenses through reductions in events, motorsports, and ad spending
• Cut truck production by 300k units by 2009
• Reduce product development budget for 2009 to $7b by delaying launches of next generation trucks and SUVs and cutting V8 development
• Increase spending on alternative powertrains
• Push back blue collar retirement VEBA payment from 2008 to 2010, saving $1.7b
• Eliminate stock dividend payouts effective immediately to save $800m
• Raise $4 billion to $7 billion through asset sales and financing using some $20 billion in assets as collateral
• Continue review of the Hummer brand

GM is under quite a bit of pressure right now, and with stocks sliding to $9.63 per share, the General didn't have the luxury of waiting until its August shareholder meeting to unveil its plans. Now it's up to Wall Street to determine whether $15b in savings is enough to turn things around.
UPDATE: Wagoner addressed GM employees and shed some light on what products are in the pipeline.

• The Chevrolet Cruze will begin production in the U.S. in 2010
• The Chevrolet Equinox will go into production in May of 2009, equipped with a direct-injected 2.3-liter four-cylinder engine.
• The Cadillac CTS coupe has been green lit and is coming in the summer of '09.
• The Cadillac CTS Sportswagon will be on the market in next spring.
• The next Cadillac SRX, inspired by the Provoq concept, will go on sale globally in 2009.
• The rear-wheel-drive Buick Invicta will be released in the U.S. next spring.
• The Saab 9-4X is on its way in late 2009.