GM CEO: Alternatives to gas needed

Wagoner hypes green efforts at annual meeting but argues against tougher mileage rules; greenhouse gas proposal defeated.

NEW YORK (CNNMoney.com) — General Motors Chairman Rick Wagoner told company shareholders Tuesday that moving away from gasoline-powered cars is crucial for the company’s long-term business prospects, although he argued tougher government regulations on mileage requirements are not the way to get there.

And a preliminary vote of shareholders at the company’s annual meeting Tuesday showed GM (Charts, Fortune 500) management defeated a shareholder proposal that would have pushed the board to publicly adopt greenhouse gas reduction goals for its products and operations. Still, although it was defeated, about 26 percent of shares voted in favor that proposal.


Speaking at the meeting, Wagoner said that while GM made great progress in turning around its business in the last year, more cost savings must be won in upcoming talks with the United Auto Workers union in order for the company to be competitive.

And he said that the company’s overseas sales should help its revenue growth, even as it has been losing market share in its home U.S. market.

But much of the talk of his brief prepared remarks focused on environmental issues, rather than traditional sales and profit discussions that dominate nearly all annual meetings.

CNN