GM is shifting its focus to a streamlined product approach, reducing its design and engineering expenses, supplier costs, order complexity, buildable combinations, and manufacturing complexity. The strategy is dubbed “Winning with Simplicity,” and is expected to save the automaker millions of dollars in expenses. That includes an estimated $200 million in 2024 alone.
The insight into the savings realized by GM’s latest Winning with Simplicity strategy was provided by company CEO Mary Barra, who explained how the strategy was saving The General money during the recent Q4 2023 earnings presentation.
“We are beginning to see savings from Winning with Simplicity, and all of our current and future programs have embraced this very important way of designing products,” Barra said. “Each team is responsible for creating trim series that make vehicles easy to order, with the content customers want, and far fewer standalone options.”
The strategy includes more equipment as standard in vehicle trim series, a move expected to delete “thousands of unique part numbers and dozens of software releases.”
“For example, we have eliminated over 1,000 selectable options across our current and near-term product programs, which is reducing hardware, software, ordering, and manufacturing complexity, and importantly, all the costs associated with them,” Barra explained.
According to Barra, the Winning with Simplicity strategy is expected to save GM about $200 million over the course of the 2024 calendar year.
“To be clear, we’re talking about $200 million of savings to execute the same product plan,” Barra clarified. “These savings will grow over time as we apply the discipline to future products like our next-generation full-size pickups.”
Last August, General Motors announced that it would cut 200 engineering positions as part of the Winning with Simplicity strategy. Additionally, the second-generation Chevy Bolt EV is expected not to be a complete clean-sheet redesign, but will rather include updates with the latest GM Ultium battery and GM Ultium Drive motor technologies.