The State of General Motors
General Motors just held their annual stockholder's briefing last night where CEO Dan Akerson revealed the company's performance in 2011 and plans for the future.
“We earned record net income of $7.6 billion and EBIT-adjusted of $8.3 billion,” said Mr. Akerson. “Our sales were up in every region. We grew our global market share.”
According to the CEO's speech, GM was able to achieve 5th place in terms of revenue according to the Fortune 500, but was ranked 20th in terms of profit. The American company had been making major investments on 30 facilities and have either hired or retained 17,800 jobs.
In 2009, GM -after years of losses- bit the bullet and filed for bankruptcy, and is ranked as the 4th largest bankruptcy filing in U.S. history. After the reorganization and a U.S. government-backed (as well as taxpayer-backed) influx of funds, New General Motors emerged, having trimmed off the un-profitable brands such as Hummer, Saturn and Saab.
“2011 was a good year. But it wasn't a great year,” continued Akerson. “We have much more work to do because making GM great again is what we are working toward.”
Akerson cited GM's strong growth in overseas markets as well as in the U.S., particularly in China, Russia and Brazil. GM looks to launch several new models, including the Chevrolet Spin MPV and the Mokka, a subcompact SUV with Opel.
GM is still looking to reduce their facilities by reorganizing the shifts for vehicle production for more savings.
“For example, in Europe we will build our next-generation Opel Astra in two plants running three shifts, instead of operating three partially full plants like we do today,” continued Akerson. “There also is our new alliance with Peugeot, which is designed to reduce our commodity costs and streamline logistics.”
“I know we can get the job done – and do it well – because the old internally focused, consensus-driven and overly complicated GM is being reinvented brick by brick. We now have clarity of purpose backed by true accountability, and that’s part of a broad cultural change underway at GM,” concluded Akerson.