News Column

GM: Nearly All Its Vehicles to Be New or Updated by 2016

March 28, 2013

Nathan Bomey

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.

For more coverage on the automotive industry, please see HispanicBusiness' Auto Channel

Source: (c)2013 the Detroit Free Press Distributed by MCT Information Services

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