General Motors Corp

The yawning gap between the world's two biggest automakers widened Tuesday as Toyota Motor Corp. posted record fiscal third-quarter profit while General Motors Corp. introduced a new round of cost-cutting to help halt its mounting losses. "It's a case of the rich getting richer and the poor getting poorer," said analyst Shelly Lombard at GimmeCredit, a New York corporate bond research firm.

General Motors Corp. is recalling about 900,000 pickup trucks worldwide to fix tailgate cables that can corrode and break when loads are put on them. The recall involves 1999 and 2000 models of the Chevrolet Silverado and GMC Sierra trucks. Detroit-based GM said there had been 84 injuries, most of them minor scrapes and bumps. GM said the galvanized, braided-steel support cables that keep the tailgates in place can corrode or fracture over time.

General Motors Corp. cut its $89-billion U.S. pension obligation by $3.9 billion and trimmed its estimate for future spending on retiree healthcare by $19.3 billion after 34,400 workers agreed to leave. The lower estimates factor in the smaller workforce, healthcare cuts for union workers and changes in benefits for salaried employees, GM said in a U.S. regulatory filing. GM's spending obligations also were reduced by the higher discount rate it used to calculate future expenses.

Fiat of Italy can try to force the sale of its automotive unit to General Motors Corp. beginning today, a move that the world's biggest automaker does not want and that might lead to a downgrade of its $291 billion of debt. Fiat Chief Executive Sergio Marchionne and General Motors CEO Rick Wagoner are working within a mediation period in which to reach a solution. If none is found within 10 days, either side can take the matter to court in New York.

A Texas jury cleared General Motors Corp. of responsibility for injuries to a 34-year-old man who was left quadriplegic when his 2003 Chevrolet Tahoe sport utility vehicle rolled over. Alan Kohutek argued at a trial of his personal-injury lawsuit against GM that the Tahoe was prone to rolling over during evasive driving maneuvers and that the roof doesn't protect occupants during a rollover.

General Motors Corp., the world's largest automaker, said second-quarter profit plunged 30% as lower demand for cars forced it to cut production and raise rebates. Net income declined to $901 million, or $1.58 a share, for the Detroit-based company from $1.29 billion, or $2.43, in the same period last year. Sales were unchanged at $48.3 billion.