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GM to Increase Capital Spending Budget

NEW YORK - General Motors Corp., facing stiff competition from Toyota and other foreign rivals, said Thursday it plans to boost capital spending by as much as $1 billion a year as it attempts to revitalize its product line while drastically cutting costs.

GM Chairman and Chief Executive Rick Wagoner said the world's largest automaker will increase its global capital spending to between $8.5 billion and $9 billion in 2007 and 2008, up from less than $8 billion in 2005 and 2006.

Executives for Detroit-based GM did not release specific financial guidance during Thursday's presentation to automotive analysts in Dearborn, Mich., but Wagoner touted the progress made by the automaker during ...

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