For the first half of this year, General Motors posted a profit of $6.3 billion, making it the best start in over two-decades. However, GM CEO Dan Akerson wants the company to do better.
$6.3 Billion is nothing to scoff at, but Akerson points out that figure equates to a 6% margin. He wants to see GM beat out the 7% margins realized by Ford & Volkswagen.
So how will GM do it? By cutting. GM has put forth plans to have just 14 global architectures by 2018, a dramatic drop from the 30 architectures in use. Also, GM will cut down their engine platforms from 20 to 10 in the same time frame.
Akerson is also targeting the company’s marketing efforts to help cut costs. GM's Chief Marketing Officer Joel Ewanick wants to have 10 agencies for the whole group.