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Tue August 9, 2011
GM is less complicated and less wasteful, investors told
General Motors executives says the company is becoming less complicated, and less wasteful, than it was in the past.
GM CEO Dan Akerson says that simplicity -- along with a "fortress" balance sheet, and a lower cost structure will help GM break even in bad times, and make money in good times.
Akerson and other top executives gave investors an in-depth briefing of the company's post-bankruptcy progress and plans for the long-term future.
GM has reduced its brands in the U.S to four, will focus on Chevrolet and Cadillac as its primary global brands, and will use regional brands such as Opel to help the company compete in specific markets like Germany.
GM's drastically reduced debt load also frees the company to follow through with product plans. In the past, the company had to abandon car programs during recessions because of the pressing need to make debt payments.
"We think, just on cancelled product programs, we’ve probably blown a billion dollars a year in the last few years, as a result of having to pull back from things we’d already started," said Chief Financial Officer Dan Ammann.
GM regained its number one global sales position in the first six months of this year. But Akerson says being number one is not the goal.
He says GM must make the customer the first priority. And GM will focus on profitability, not market share.
GM's head of global marketing Joel Ewanick said GM will also set its sights on a new "stretch" challenge: being the first automaker to get one of its brands on the list of the top twenty-five most recognized global brands.
That list includes a number of U.S. brands, including Apple and Coca-Cola. But no car company's brand has yet made it onto the list.