June 7, 2005 10:15 AM, EDT

GM to Slash 25,000 Jobs by 2008, CEO Says

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eneral Motors Corp. plans to cut 25,000 manufacturing jobs between now and 2008, GM's chief executive officer Rick Wagoner said Tuesday.

The unspecified plant closings will save the company about $2.5 billion a year, Wagoner said in a speech at the company’s shareholder meeting in Wilmington, Del., news services reported.

Wagoner is seeking to return the largest U.S. automaker to profitability after its biggest quarterly loss in 13 years and a 6.7% drop in domestic sales this year, Bloomberg reported.

He did not give any earnings guidance or say if or when the company would turn around to profitability, CNBC reported.

In addition to automobiles, GM also makes trucks, most in the light and medium-duty classes.

Should the company close plants, labor agreements with the United Auto Workers require it pay its workers, at least through 2007, Bloomberg said.

GM has reduced its workforce by 80,000, including 39,000 in North America, since Wagoner became CEO in June 2000, Bloomberg reported.

The Wall Street Journal reported Tuesday that the automaker plans to issue new models such as a seven-passenger wagon and sport utility vehicles with improved fuel efficiency.