General Motors expects to redesign, refresh or replace nearly 90% of its vehicles in the North American market from 2013 to 2016, according to a presentation at a conference in New York.
The automaker will double its pace of product improvements during that three-year period, compared to 2009 to 2012, GM North America Chief Financial Officer Chuck Stevens plans to tell analysts this morning.
In 2013, GM expects to refresh 39% of its North American product portfolio, fueled by redesigned vehicles such as the Corvette Stingray, Chevrolet Impala and Cadillac CTS.
By 2016, about 89% of GM's North American products will be new or redesigned, the company said.
The automaker is also aiming to cut its non-production costs by 6%, with a heavy emphasis on reductions in information technology costs, according to the presentation. GM Chief Information Officer Randy Mott is implementing a plan to bring 90% of the company's IT work in-house, instead of outsourcing 90% of it. He has cited cost reductions as a side benefit of his plan, which centers on eliminating overlapping software applications and databases.
GM wants to boost its North American profit margin from an average of 7.4% over the last three years to 10% by mid-decade, Stevens reiterates in the presentation.
But the presentation indicates that the company's North American profit margin won't change much in 2013.
The company's profitable North American operation will get a boost from the second-quarter introduction of the redesigned Silverado and GMC Sierra pickup trucks, which will hit the market with the housing market picking up steam and consumers displaying resiliency.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
SEPTEMBER 2, 2014
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