GM staff 'queue up' to leave firm

For some GM workers, the offer is too good to resist

Some 35,000 workers at troubled US car giant GM have agreed to take voluntary redundancy or early retirement, the company has confirmed.

GM has said it needs to radically reduce its workforce and close a host of factories by 2008 if it is to control costs and stay competitive.

US sales have fallen sharply amid a drop-off in demand for sports utility vehicles and tough competition.

The carmaker said its plan to transform the business was ahead of schedule.

Turnaround plan

GM has been forced to take drastic action in the face of mounting losses, which some experts believe still leave the company vulnerable to potential bankruptcy.

The world's largest carmaker lost $10.6bn last year.

It now expects to reach its target for people to leave the business by the end of the year, two years earlier than planned.

We have accomplished a great deal in our strategy to reshape GM into a company that is more nimble Rick Wagoner GM chief executive

Workers had until Friday to sign up for early retirement or voluntary severance packages - worth up to $140,000 - although staff are free to change their minds within the next week.

GM said it was encouraged by its employees' response to its offer, part of plans to save up to $6bn in annual costs.

"Over the past several months, we have accomplished a great deal in our strategy to reshape GM into a company that is more nimble, more global and built for long-term success," chief executive Rick Wagoner said.

Investors responded positively to the latest news, with GM's shares closing up 2.8%.