GM Not Certain Anymore on Sale Forecasted for This Year

Sometimes even top guns like General Motors’ executives can get a bit a head of themselves when making some forecasts. The problem now is that GM is wondering if the auto retail industry will be back on its feet as forecasted. Though the company still backups the original forecast of around 13 million units for the year, it is not sure if the manufacturer will make it that high according to Chairman and CEO Dan Akerson.

But the executives remain optimistic regarding the future of the company which has made serious profits is such a short time from its bankruptcy alert. One of GM strategies in order to become more efficient in the future will be raising the capacity by 45 percent across Brazil, Russia, India and China by 2014. Another concerning issue might be that GM shares have lost more than 20 percent since November.

Though they recovered slightly on Tuesday, the manufacturer closed up 97 cents at $25.54. Another strategy for GM to become more cost effective would be to cut its 30 world wide platforms which the manufacturer was known to have in 2010 to a number of 14 by 2018. At the same time the reduction of platforms will help save engineering, manufacturing and design costs.

GM also plans to reduce the number of engines it produces in order to be more effective on global markets."There's a lot of complexity. We need to simplify it. More of our components will be common and more of our vehicles will be on global architectures," Akerson was quoted as saying by MSNBC.