GM Executives to Push the Company from Good to Great

The annual conference with investors and financial analysts revealed that GM is on a steady course. General Motors has demonstrated improvement after emerging form Chapter 11 bankruptcy just 2 years ago. The manufacturer’s plan, GM Chairman and CEO Dan Akerson explained, has “all the requisites to push this company from good to great.” According to Akerson the main drives of the plan are to design, build and sell the world’s best vehicles, as related by Auto Observer.

Also, GM plans to strengthen brand value like grow profitability worldwide and maintain a “fortress” balance sheet that will survive the ups and downs of the auto sales. General Motors executives had a reserved attitude regarding when the US government will be completely out of the car maker’s business. This move might be delayed by the stock market’s unstable behavior.

The manufacturer already has one of the largest footprints on the market and has plans to grow its worldwide capacity further by 80 percent. General Motors made plans to increase its capacity by 45 percent by 2014 in countries like Brazil, Russia, India and China. The manufacturer has adopted a partnering technique which will allows the manufacturer to reward suppliers if they hit agreed-upon cost targets for a current vehicle.

Achieving the target will automatically grant them the contract for the next vehicle generation produced by GM. The program will encourage suppliers to share their best cost-reduction ideas. A very well known fact is that in the past years suppliers, withheld upfront cost-saving ideas because they knew they’d be hammered down for lowered costs.
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