Faced with dim prospects, the 56-year-old CEO ordered GM to abandon money-losing markets like Russia and South Africa, even India, where the company has closed its showrooms, though its factories there will continue producing vehicles for export.
The most dramatic move came when Barra announced in March 2017 that the endlessly money-losing German subsidiary, Opel-Vauxhall, would be sold to France’s PSA Group the parent of Peugeot and Citroen. The three global sales leaders, Toyota, VW and the Alliance, are expected to finish 2018 with volumes of more than 10 million vehicles each. Without Opel, GM will fall short of 9 million at the current pace and, barring a dramatic shift, will be permanently out of the running.
If anything, the latest model cuts and plant closings could weaken GM’s hold on the U.S. sales crown, according to industry analysts. But it’s a move that had to be made, said Michelle Krebs, an executive analyst with Autotrader. “In contrast to times past, General Motors, under CEO Mary Barra, is trying to get ahead of a potential crisis by making cuts now.”
The company’s unexpectedly strong third-quarter results suggest that the steps being taken by Barra— and a close-knit team that includes New Zealand-born GM President Dan Ammann — are shifting in the right direction. But it’s not that Barra is taking the easy way out, simply shedding money-losing operations and hoping to cut her way to profitability.
Source : CNBC
