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General Motors is postponing nearly all of its spending on product development in 2009 and 2010--a cost-cutting move that could delay the introduction of key fuel-efficient vehicles such as the Chevrolet Cruze, although the much-anticipated Volt plug-in hybrid is still on schedule.


The automaker also is cutting spending on engineering, design, and research and development, Automotive News reported today


(subscription required), citing unnamed sources. So far, nothing has been officially canceled, but nearly everything is delayed, the sources say.


"The 2009 stuff that's too late to cancel is coming out, then everything else gets pushed out anywhere between three months and up to a year," said one of the sources. "It's not just capital budget; it's also engineering, design ... everything that would cause money to flow out in 2009."


The automaker is taking drastic action to avoid running out of money sometime next year, the publication reported. With its product delays, GM hopes to save as much as $1.5 billion, said the source.


GM spokesman Dee Allen declined to comment on plans for individual products. "There have been all kinds of speculation," he said. "We've said we're reviewing our portfolio, and we do that as a regular course of business."


Two high-profile vehicles--the Chevrolet Camaro and the Chevrolet Volt plug-in hybrid--are protected from the cutbacks, said one source close to GM. Likewise, the restyled Buick LaCrosse and possibly the Cadillac CTS wagon are still due to market as planned.
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Tags: Buick, Cadillac, Chevrolet, Fuel Economy, General Motors, Automotive News, Buick LaCrosse, Cadillac CTS, Chevrolet Camaro, Chevrolet Cruze, Chevrolet Malibu, Chevrolet Volt, General Motors, GM

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General Motors Reportedly Delays Most Future Products, R&D in Cash Crunch was originally published by Green Car Advisor. Read the full story by clicking here.