General Motors aims to cut costs and improve sales in 2006
General Motors happens to be worldâ€™s largest automobile manufacturer. However, their position is now coming under a threat from Japanese automotive giants Toyota. GM is struggling to hold its position in their domestic market of USA. They are making losses, cutting jobs and closing down loss making manufacturing plants.
The company made losses of around $4 billion in the first three quarters of 2005. They are now taking serious steps to get back on track and improve sales in 2006. GM has said in a statement that they are going to now accelerate its cost-savings plan as it moves to stanch losses. 2006 is expected to be another bad year for the US automotive market as the fuel prices are expected to remain high.
GM is aiming to realize about $4 billion in savings in 2006. The bigger aim is to make savings of around $7 billion in the next 2 years. To achieve this, GM plans to lower its structural costs to around 25% from current levels of 34%. GM Chief Executive Richard Wagoner said in a statement to media representatives: “The absolutely top priority for me and the GM team is to turn around the North American business.â€