Friday, January 12, 2007

GM to boost new-product spending by $1 billion

Thursday, January 11, 2007
GM to boost new-product spending by $1 billion
Sharon Terlep / The Detroit News

Banking on a new product assault to drive up sales, General Motors Corp. will increase capital spending by up to $1 billion this year, officials told investors on Thursday.

GM expects new vehicles to account for nearly 40 percent of showroom sales this year as it rolls out products designed to revive its brands and image.

"We're going to continue raising the bar in future product, with a particular focus on outstanding design and technology leadership," GM Chairman and CEO Rick Wagoner said.

GM's has increased capital spending by about $1.5 billion over the last two years to just under $8 billion. The goal is to spend from $8.5 billion to $9 billion in 2007 and 2008.

The increase backs up financially what officials have been saying all year: cost-cutting won't help GM unless the company starts turning out more popular and profitable products.

You can reach Sharon Terlep at (313)223-4686 or

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