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Auto CEOs Promise To Slash Costs, Build Better Cars

All three CEOs plan to play it humble before the committee, as they lay out their strategies to revamp their companies and avoid bankruptcy.

“It’s fair to say that last month’s hearings were difficult for us,” said GM’s Richard Wagoner, Jr. in pre-released written testimony, “but we learned at lot.”

All three companies promised to develop more fuel-efficient vehicles (something many Senate Democrats view as a must) and slash manufacturing costs, salaries, jobs, brands, and factories to become more competitive with foreign brands.

Both Wagoner and Ford CEO Alan Mulally wrote that they plans to reduce their annual salaries to $1. Most senior GM officers will also cut their cash compensation in half.

In its testimony, Chrysler will say the company has identified about $4 billion in potential cost savings and plans to tout its title as the largest producer of electric vehicles in the country.

And Ford, which isn’t in quite as bad shape as the other two, will promise to cut labor costs, cancel all bonuses and merit increases and close six plants.

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