As General Motors posts a 15% lower Q3 profit margin this year compared to 2010, CEO Dan Akerson explained to Automotive News yesterday that his company needs to find a way to increase its annual profit margins by a few percentage points. At 6%, GM’s 2010 profit margin placed just behind Ford Motor Company and Volkswagen AG’s 7% margins.
According to Automotive news, solutions on the table currently include greater simplification on the amount of vehicle architectures and engines, and even a simplified marketing strategy. GM currently has over 50 agencies contracted, more than other large companies like Coca Cola, Apple and even Ford. Hopefully Akerson and CFO Dan Ammann find a way to wring out a few more percentage points without sacrificing jobs, wages, salaries or standout products.
Source: Automotive News