GM to Cut Labor Costs, Suspend Dividend

General Motors (GM Quote) plans to pare its labor expenses, step up factory shutdowns and halt its dividend payment in order to boost its liquidity in the next two years.

The Detroit automaker, which like rival Ford (F Quote) has seen declining sales as consumers fret about the economy, wants to add $15 billion to its liquidity through next year via a combination of lowering costs, selling assets and taking actions in the capital markets.

Among other things, GM expects to stop health-care coverage for domestic salaried retirees above age 65 beginning in 2009. ...