In recent news, General Motors is making calculated moves aimed at the target of increasing profits. One of the newest moves that GM has made is to pull out of its European Chevrolet car market. Car sales were not going well and this latest move was approved by the company’s board of directors this past October so that GM can improve another area. The company’s strategic plan is to devote the time that would have been spent in its European Chevrolet car market to focus on reconstructing the platform for Opel, a German manufactured car which is now in partnership with GM. GM is hoping to put more effort into making the partnership with Opel more lucrative with higher car sales.
It has been reported that the GM company has not been experiencing earnings that they should be with relation to their size. GM is also planning to pull out of the Australian market as soon as 2016, according to an Australian media source. There have also been reports from Korea that their Chevrolet car market will also be affected by GM’s decision to pull out of the European Chevrolet market, because they build Chevrolets for that market. The supposition is that Korea will turn its eyes to Australia for its Chevrolet automotive export market.
Market numbers show that, even though GM has sales figures that are similar to Toyota and Volkswagen, their global competitors, they only have about half of the operating earnings. It seems that GM has decided to make some drastic moves in spite of the upset they would cause for its dealers in Europe, as well as its employees in Korea. Evidently, GM decided that it had to make some drastic moves to improve its profit line, regardless of whose toes they might have to step on in the process.
The Motor City based automobile maker, GM is now doing some strategic planning, looking towards its long term profit possibilities. The auto company is now on a quest, the purpose of which is to doctor up its financial health in the long run. GM is taking steps now that will, it hopes, ensure the future profit health of its company.
Some analysts wonder what took GM so long to finally make this move that has been needed for a long time. The GM company was left in bad shape after the bankruptcy and its bankruptcy reorganization has not been progressing as well as it could because, for whatever reason, GM seemed to be hanging on to the old, broken bureaucracy instead of starting on a clean slate by getting rid of the things that brought the Motor City company to bankruptcy in the first place. Critics say that it is about time that GM finally made this move because it has been a long time coming. Change is never easy and can sometimes be downright intimidating because we never know what might be waiting for us around the corner.
