GM Reveals Plan to Save $15 Billion

Shares of GM closed up 46 cents yesterday, at $9.84, in response to the cost-cutting news. Still, the stock is trading at lows not seen since the 1950s. GM's stock slide has depressed the company's value to a little more than half that of Ford, despite GM's higher revenue, which in 2007 was more than $181 billion.

Wolkonowicz said GM has the "best batting average" for new products, adding that its cost-cutting strategy was a "well-thought-out plan and well-explained," he said.

Others disagreed.

Peter Morici, a University of Maryland business professor, said GM is "desperate" for cash. "General Motors is a giant block of ice on the beach slowly melting away -- that's the bottom line," Morici said.

In her 36 years as a salaried GM employee, Beverly Len took sick leave once and rarely used health benefits. Now that she's retired and more likely to use the coverage, it's about to be cut. "Don't punish the ones who've already put in their time," the Livonia, Mich., resident said yesterday.

"We were loyal to GM, and now that the chips are down, it's always the ones that had nothing to do with the problem that GM is in that get their benefits cut," she said.

Staff writers Simone Baribeau and Jordan Weissmann contributed to this report.