GM stops most product development; GMAC gets Fed aid

Automotive News wrote that GM is postponing nearly all its product development spending until 2011, to cut costs. This move could delay the upcoming Chevrolet Cruze and other vehicles. Cost cuts will also hit engineering, design and research. Projects are being postponed rather than cancelled, with the hopes of saving up to $1.5 billion. The Camaro, Volt, LaCross, and Traverse are all “protected” from the cutbacks.

In other news, GMAC said it was approved to use the Federal Reserve’s new short-term funding system.