Monday, Feb. 18, 1991

Business Notes

For the first time since 1980, General Motors ordered deep cuts in the dividends it pays to stockholders -- from 75 cents to 40 cents a share. GM also said it will curtail executive bonuses this year and phase out 15,000 white-collar jobs by 1993. The dividend cut alone will save $840 million a year.

Industry experts foresee even worse news ahead for the company: they project a $1.4 billion loss, the firm's worst ever, when fourth-quarter 1990 earnings are announced this week. But Wall Street analysts applaud GM's moves, saying they indicate that the world's largest automaker is preparing for a long, hard recession. And with sales of domestic cars plummeting 31% in January to the lowest level since 1982, they predict that Ford and Chrysler will be forced to make similar cuts in the spring.