Akerson: $6.3 billion first-half profit isn’t good enough, more cost reduction needed

Even though General Motors posted a $6.3 billion first-half profit, the company’s CEO Dan Akerson thinks it’s still not good enough and is pushing for more cost reductions to send a message to the employees.

The Detroit automaker’s CEO Dan Amman has held several meetings in recent months to show executives that more cuts are needed because GM’s 6 percent margin isn’t as strong as its competitors including Toyota, Ford and Volkswagen.

According to Jim Cain, a spokesman, GM is focused on taking back the global sales crown and wants to beat Volkswagen’s and FoMoCo’s margins.

How does GM plan to cut cost? According to reports, Akerson and Amann are cutting back on product programs, squeezing marketing spending and trying to consolidate engine and vehicle platforms. They are even turning down the thermostats in some offices.

– By: Omar Rana

Source: Automotive News