DETROIT – General Motors Chairman and CEO Dan Akerson shared work underway by the company to improve its profit margins at 2012 Annual Stockholders Meeting on Tuesday in Detroit.
He noted the gap in GM’s rankings this year on the Fortune 500 list between revenue and profits.
“GM was ranked No. 5 in revenue, but when it comes to profits GM ranked 20th. To be great, GM must close this gap by steadily improving our margins,” Akerson said. “It’s fundamental to earning a blue-chip multiple for GM stock, and ensure the company will be successful for generations, not just a few quarters or a few years.”
Highlights of Akerson’s prepared remarks included:
- The launch of one of the biggest global product offensives in GM’s history. He named the 2013 Buick Verano Turbo announced earlier in the day as a great example of new products designed to compete and win.
- Changes in the product development process that will reduce architectures by 50 percent by 2018.
- Addressing issues facing GM’s business in Europe, including delivering the promised synergies with Peugeot, working with unions to become more competitive, removing capacity when and where possible, and driving revenue with new product.
- Protecting the core vehicle business from economic shocks through GM’s “fortress” balance sheet and pension de-risking strategies.
“These actions are a clear sign that GM is on the move once again,” Akerson said. “I know we can get the job done – and do it well – because the old internally focused, consensus-driven, and overly complicated GM is being reinvented brick by brick. We now have clarity of purpose backed by true accountability, and that’s part of a broad cultural change underway at GM.”
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM’s brands include Chevrolet and Cadillac, as well as Baojun, Buick, GMC, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.