By vowing to lop off $10 billion in costs General Motors has managed to reassure its investors and creditors that it is not facing imminent bankruptcy, but the company is now faced with improving passenger car sales and diverting its market focus from trucks and SUVs to fuel efficient models.

Efraim Levy, an equity analyst with Standard and Poor's was quoted by Automotive News saying, "They need to make a transition, but that isn't going to happen overnight, and the transition is going to be difficult." Levy further predicted that GM will continue to lose money through 2009.

The Chevy Malibu may be one of GM's saving graces, being hailed as the best mid-sized sedan currently available. Sales of the Malibu have climbed 31 percent and sales prices are up on average, however the Toyota Camry is still the best seller at a ratio of 3 to 1 and Honda continues to sell twice as many Accords.

To reach its stated cost cutting goal, GM will have to dispense with management jobs in the thousands and has already cut its truck production by 300,000 units, especially targeting the Chevy Silverado and the Tahoe SUV, both of which have proved to be slow sellers.

Speaking to reporters last week GM Vice Chairman Bob Lutz said, "This is not the time for niche vehicles. We can't afford to hit singles and bunts. We need triples and home runs."