GM chief executive: Company is committed to growing profits

on Monday, January 9, 2012

GM chief executive: Company is committed to growing profits General Motors chief executive said this week the company continues to aggressively pursue profits growth.

Reuters reports GM chief executive Dan Akerson affirmed the company is committed to implementing business cost reduction initiatives, overhauling spend management and indirect spend and effectively reworking supply chain management as it works to boost profit margins. The U.S. automaker is less concerned, according to Akerson, with defending its market share in the U.S.

"I like profitability more than I do market share," he said at the Detroit Auto Show. "We're a mass producer and scale matters to us, but obviously we'll look for margin and profitability going into 2012."

The GM of now differs considerably from the company of the past, experts say. GM once vehemently defended its previously staggering market share by offering aggressive incentives and keeping its factories at high capacity. However, such policies contributed to the downfall of the company, which ultimately filed for bankruptcy in 2009.

Under Akerson, GM has reorganized and is committed to increase profit margins. Still, the company has grown its market share in the U.S. for the past two consecutive years, a feat it had not achieved since the 1970s.

 

0 comments:

Post a Comment

Keep in Touch and Subscribe:

Keep up to date with your Procurement & Strategic Sourcing News.

Procurement News RSS Strategic SourcerorRSS Feed
Follow GetSavings on TwitterTwitter/GetSavings
Friend Source One on FacebookSource One on Facebook