General Motors you need to adjust their operations to save more money

The situation that is living General Motors is the least rare. Prior to the sale of Opel the PSA Group their finances were at a stalemate, but it seems that during the past year have fallen again in red. According to the last balance sheet published by the conglomerate american, the economic results of the third quarter of last year marked a losses of almost 5 billion dollars.

This situation block to perfection with the restructuring who are suffering operations of General Motors in all the world, for it not only has ceased its activity in the Old Continent, but since the end of 2013 has limited its presence in other parts of the globe like Russia, Australia, Indonesia and Talilandia. In addition, also is reorganizing and shifting part of the manufacturing models in India and south Africa Isuzu Motors.

According to the General Director of General Motors, Mary Bar

“the cost structure has become a challenge and we’re going to have to take measures in the future to have a viable business”

to carry out this reorganization with reduced costs, Mary Barra has sent to several of his advisors to those regions where the operations have not worked well in the past few years. The area that worst part might be is Korea, because the group’s sales have declined steadily, when a few years ago was one of the bastions most strong of its industrial strategy.

In any case, Mary Barra has clarified

“it is too soon to say what actions you plan to take the company because the talks are still in progress” […]”the officials are being very clear with all stakeholders that the operations need to improve”

In any case, it seems that Korea would not be the only region of the world where General Motors could reduce their operating costs, so the structure of the group is still very large. In any way, will have to see how to solve this problem because the investments that are being undertaken to electrify their models and develop its technology driving autonomous are inversely proportional to their current size, so that the same need collaboration of a partner.

Source – General Motors

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