As we count down the end of 2012, we thought it wise to look back on GM’s biggest moves of the year. On the whole, The General is a very healthy company that’s in the process of making itself even better and more competitive. As such, 2013 should prove to be a very prosperous year for The General… considering that a lawsuit doesn’t bring it all down. And so, the five biggest moves with the most gravitas by GM in 2012 include:
Treasury Divestiture & GM’s Share Buyback
Goodbye Government Motors, and all kinds of other silly monikers ascribed to GM over the last several years: the U.S. Treasury has finally announced its plan to completely exit The General’s ownership beginning in 2013. Of course, the U.S. government will likely lose some of its original $49.5 billion investment in the company, which really shouldn’t be treated as an investment in and of itself… but that’s a topic for a different time.
The point is that GM will finally be an independent automaker, free to compensate talent as generously as it believes to be appropriate, and its shares will be able to be traded publicly without any kind of fear, uncertainty, or doubt — elements that couldn’t have taken place until today. The divestiture also carries a myriad of other benefits, most of which are positive. Now, when will Canada sell off its own stock?
Staying The Course With Opel While Making Friends With Peugeot
GM’s notoriously-loss-making German division Opel has been the topic of much-contested debate for the last several years among analysts and among GM itself. And while it could be argued that GM might be better off without Opel (as a brand) or with it, it seems that GM has finally decided to keep Opel in the long run while investing in the brand, new products, and new engines.
And then there’s the Peugeot-Citroen partnership, which is ultimately meant to improve The General’s scale in sourcing/purchasing, vehicle development & engines, technology, and manufacturing. Like Opel, this is a long-term play — and the jury is still out. But somehow, buying a seven percent stake in the French automaker for $335 million to get the project underway seems a good idea to The General.
Aggressive 2013 Model Rollout
Between Chevy, Opel, Cadillac, Buick, and GMC, General Motors will launch or announce over 20 vehicles in 2013, 13 of which will be Chevys. A fresh and competitive product portfolio tends to speak for itself in the marketplace, especially now that GM has had a batch of highly-competitive mainstream vehicles under its belt for the last year or two, such as the Cruze, Sonic/Aveo, ATS, LaCrosse, and Verano.
Major Information Technology Revamp
General Motors is investing big in Information Technology. Located across multiple locations around the globe, the overhauled department will bring most of GM’s IT operations in-house from one that was mostly outsourced — resulting in a complex web of standalone and dis-integrated tools and software applications that hinder GM’s ability to quickly make decisions.
Intelligence, speed, and the empowerment of employees via decreased complexity and increased capability is the name of the game here — and we’ve no idea how GM has come this far with its current IT infrastructure.
Huge Focus On Profitability
General Motors is significantly less profitable than its closest competitors — namely, Toyota Motor Corp. and Volkswagen Auto Group. That’s why CEO Dan Akerson has made it his public goal, among other things, to significantly boost The General’s profits — a move that will ultimately lead to a continuous cycle of a healthier company making better products.
Among ways to achieve higher profitability is significant platform consolidation, revamped operations in Europe and South America, among other markets.
So as 2012 rolls into 2013, did we miss any significant GM events, moves, and decisions in ’12? Talk to us in the comments, and Happy New Year!
Comments
Happy new year !!!! Very well said Alex in my opinion I think the 2013 model year vehicles are the most significant starting with the Ats ,verano turbo and the new impala those vehicles are what’s going to make the big bucks for GM present and future after all you are your product and that product has to be top 3 in its segment
Profits, nice thing to have. And what sucks profits more than new models that have high volumes.
The high volume trucks will come out soon and the sunk cost of design, development and tooling will be done pretty much this year as will the cost of the other 19 new programs. 2012 has been a very costly year for GM and look for a better profit/revenue ratio for 2013 and beyond.
The big question should be what is new for 2014? What are they working on now?
Making FRIENDS with Peugeot? They had better make MONEY with Peugeot instead. That connection with Peugeot was one of the most idiotic ever by Lackerson. And one that I unfortunately project to hurt GM in the long run. I will admit it if I turn out to be wrong, but I just can’t see the point to that relationship. It reminds me of Michael Jackson marrying Lisa-Marie Presley.
Based on the recent Silverado/Sierra and Malibu fiascos I am very nervous about the models being rolled out for 2013. I am unfortunately predicting some errors along the way. Some VERY serious ones as well. I wish I could say that I am perfectly calm about January 13. But I’m not…
In my opinion, the best thing that GM can do for 2013 is get rid of Dan Lackerson…I mean Akerson…Dan Akerson…After they do that somebody should get down on their knees and BEG Bob Lutz to return in his place. THEN we’d see the rock roll! If only it could be so…
Michael Jsckson got the rights to all of Elvises music when he married her. Which needless to say is worth some money. On a side note Michael also owned the rights to all of the Beatles music. Though he may have seemed crazy he was a good business man. Anyways, don’t know if GM and Peugeot’s relationship with be that fruitful but here’s to hoping it was a good business decision.
I believe this “alliance” will only hurt GM in the short and long term and it will eventually end in failure.
For GM’s sake I hope I’m wrong…
We’re still too dependent on trucks for cash flow. The sedans have to succeed as well. Otherwise we’ll be back to the future all over again.
Cadillac’s Omega platform!
Omega?! What? Where?
Happy new year! Here’s to much success for GM….hope it is a stellar year 🙂
Look richard i understand your apprehension but i think that dan akerson can be the right guy for the general this is why. Akerson is a carlyle group guy a very successful financial firm and he has the pedigree to maximize profits for gm and get them on the right trajectory to long term financial health. When his reign is over then you could bring in a car guy like perhaps mark reuss. I think gm is on the tight path and nothing says that more than their current product offerings the best in the companys history.