GM Considers Halving Vehicle Platforms and Mass Manufacturing Of Cadillac In China

Top Executives reported that General Motors Co. is planning to forcefully shape its global operations, reduce the number of vehicle platforms by half over the next ten years and merge the number of engines employed in its cars and trucks worldwide. They said that till 2018, GM will establish 90 percent of its vehicles on 14 platforms, half of it now,  in an attempt to hike manufacturing efficiency by 40 percent. In the same time period, GM also wishes to reduce half the number of engine varieties.

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The goals drafted are a section of GM's second annual global briefing, handed over to major institutional investors and analysts gathering with executives of the auto company. GM CFO Dan Ammann stated that the company continues to function for reducing its debt and liabilities. Its U.S. pension plans remain under-funded by $10.8 billion since June 30, 2011. GM's U.S. pension liabilities remain a "work in progress" and the market unpredictability will have an affect on those efforts, as per Ammann. Brand Chevrolet has gained some ground and is up to 65%, which is 4% greater than the previous year.

Cadillac, which GM states as its second truly global brand, now holds only 3 percent of its global sales. CEO Daniel Akerson reported that GM will be manufacturing Cadillacs "in volumes" next year in China. GM's new product chief, Mary Barra, said that GM wants to keep investments stable in its new car and truck development programs no matter how the encountered experience'll be like. She said that in the past, the company was losing up to $1 billion a year beginning vehicle programs, and then deserting them when the industry hit a low.

Chevrolet is done with the upgrade of its latest lineup . The 2013 Malibu comes out early next year. A new full-size Impala is releasing soon thereafter. Barra added that Chervolet's new micro car, the Spark, is expected in the first-quarter 2011 in Europe, with launches in the United States and other markets to follow. GM's global manufacturing chief, Diana Tremblay said, "The company believes it has sufficient capacity at its plants to crank up production if U.S. demand for cars and trucks hits as much as 16 million a year. At the moment, GM believes there isn't enough product demand to justify reopening its Spring Hill, Tenn. plant."