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GM to cut engine and vehicle platforms across global market 21
Posted by Vervoering in Car News, Chevrolet Traverse, General Motors, GM, GM news on 08 21st, 2011

In an official statement made by American car manufacturer, General Motors Inc., the company states that they will cut in half the total number of automobile units and power plants used globally. This move by GM is said to be their solution to address their up and down ride in cost and product development problems.

According to the official statement, the number of GM automobile architecture will drop from 30 in 2010 to 14 in 2018. Their engine platforms will take a dive from 20 in 2009 to just 12 in 2018. Their long term goal is to make the engine platform figures to just 10. According to executives from General Motors, the number of unproductive development practices is causing them almost $1 billion annually. This is supported by the claim made by Senior Vice President, Mary Barra who confirmed that they lost almost $1 billion annually because of inefficient production practices and that they’ve been in an up-down cycle when it comes to product investment.

Barra added that the launch dates for the Buick Enclave, the GMC Acadia and the Chevrolet Traverse continue to take a drawback due to fluctuating financial conditions. Having common architectures will help the company take the product lines to the show rooms faster.

The press release also mentioned that the American brand will begin producing Cadillacs in China by the bulk late in 2012. Additionally, GM is will set up another assembly plant in Russia and about four more in China. Lastly, GM is said to be planning to debut about 16 new models in China in the span of five years.

GM’s filing to go Public warns Investors 3
Posted by Vervoering in Car News, General Motors, GM, GM news, Uncategorized on 10 3rd, 2010

General-MotorsGeneral Motors Co. has included the standard warnings for present and future investors in its 734-page filing to go public.  This includes the many risks that GM faces in the industry like the stability of its supply base, weak sales figures, and changes in regulations to name a few.  Of course, the risks that GM has disclosed almost paint the picture that the American automaker might just face bankruptcy in a year’s time.

The 734-page file also includes the state in which senior management is being paid an uncompetitive salary because of the limitations that comes from the government’s aid to the GM.  There is also the matter of unhealthy financial controls inside the company the negative effects of GM’s deflating dealer body to its market share and sales in the U.S.

According to GM, the sales and market share will suffer when they decide to let go of several brands and cut down their U.S. dealer network.  In 2009, there were approximately 5,600 GM dealers in the U.S.  In June 2010, the figure goes down to 5,200.  The initial plan was to cut down the dealerships by 3,600 to 4,000 in the long run that in 2009, the automaker has ended their franchise deals with over 2,000 dealers. But the new federal law urged GM to revive at least 700 of these terminated dealerships while some were restored through government mandated negotiations.  GM now plans to cut their US dealers to around 4,500 towards the end of this year.