General Motors will save $1 billion annually through changes to its business and salaried workforce cuts in Canada and another $1 billion in future legacy costs — mainly pension and health-care payments — through a deal with the CAW.

In a letter to a parliamentary sub-committee charged with studying the auto industry, GM Canada president Arturo Elias said the company has taken “unprecedented” steps to reduce its costs.

He added that the company’s executive and white-collar employees have also made sacrifices. The company’s executives have taken a 10 per cent salary cut, there will be no bonuses this year and all salaried employees have seen “very significant benefit reductions.”

GM must submit finalized restructuring plans to the government by the end of March.