Despite Profits GM Looking For Ways To Cut Costs

DETROIT (WWJ) – Despite solid profits in the first half of the year … GM’s CEO has the company looking to cut costs.

WWJ AutoBeat Reporter Jeff Gilbert explains that the issue is the profit margin not necessarily the $6.3 billion that GM made in the first half – that’s the best GM has done in 20 years.

Bloomberg reports that Ford Motor Company has a profit margin of 7.5 percent and GM is at 5 percent.

Bloomberg says that GM CEO Dan Akerson has its people looking over every program to cut out waste.

Analysts expect GM to post another profit when the company it posts its third quarter earnings Wednesday.

Despite all of these earnings GM stock price is still below where it launched at in 2010.

More from Jeff Gilbert
Comments

One Comment

  1. Mac Roe Econ says:

    Mark my word, Admiral Akerson will cut American jobs, engineering overhead and manufacturing. Past history of cost cutting lead to inferior product and lost American customers. The Japanese brands gained at the expense of Big-3 cost cutting. How about cutting the executive pay too?

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