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GM Tightening their Belt

GM is already taking precautions after the earthquake hit Japan which, along with the Tsunami, that hit the area has caused massive damage to the buildings, killed thousands and has disrupted the automotive industry since that most automakers receive some type of part for their vehicles from Japan. This is putting many automakers in a tight spot, especially those that have plants in Japan because they are having to be closed down while the damage is accessed. However, back in the US, automakers are feeling it to, as plants are shutting down for a few weeks, waiting for supply level to pick back up.

General Motors is tightening their belt so to say on the expenses that they have, and according to what they told employees, it is all due to the disaster in Japan. They plan on canceling trips that are not going to render success and overall just watching every dime that they are making. However, as most people point out the money that they are going to save through this belt tightening is liable to add up to nickels and dimes for the hugely profitable company. So why is GM doing this? 

More than likely most people are predicting that they are doing this to show the world and their new share holders that they are watching each and every dime that they are spending so that people will know that they are doing their best to keep afloat this time around. However, people point out that just because they are doing this, they should not be expecting financial experts to completely redo their projections of income for this year since it is not going to add up to much with their belt tightening techniques. However, for those that have invested in the company, it is a sign that GM is trying to do their best and one that is welcomed.