General Motors disclosed on Thursday, May 29 that approximately 19,000 hourly employees accepted the latest buyout offer and will leave their jobs on or before July 1 paving the way for new hires to receive the lower entry-level wage and benefit package negotiated in 2007 with the United Auto Workers Union.

In a statement issued by the company, the president of GM North America, Troy Clarke, said, "Despite significant challenges in the U.S. market, we continue to reshape our business for long-term success. This attrition program gives us an opportunity to restructure our U.S. workforce through the entry-level wage and benefit structure for new hourly employees." Where possible, current employees will fill the vacated positions.

The president of the United Auto Workers, Ron Gettelfinger, said in February that he looked for about 20,000 employees at GM to take the buyouts. He further said he expected the numbers to be effected by economic uncertainly and similar concerns, a factor that apparently did weigh in. The reductions that were achieved, however, may not be sufficient to address the automaker's ongoing economic concerns. Earlier in the week, an undisclosed source told the Associated Press that even more job cuts would be announced at the company's annual meeting in June.

That measure, coupled with lower production of trucks and SUVs, illustrates the degree to which the high price of gasoline and the continuing credit crunch are effecting car sales in the United States. GM's production was already down due to the three month UAW strike against American Axle, but the company now seems set to move away from an emphasis on trucks and SUVs for a concentration on cars with better fuel economy.