GM: posts record net income of $7.6 billion in 2011

Partners with PSA for joint purchasing and co-developing platforms

2012/03/30

Summary

 In 2011, GM sold 9.03 million vehicles worldwide and has regained the title of the world's top-selling car maker for the first time in four years. The car maker also improved profitability in its business in North America and posted a new record of consolidated net income (USD7.6 billion) for the first time in 14 years since 1997.

 Although its performance is improving, GM announced two plans in order to further enhance management efficiency.

 In August 2011, the car maker announced its intention to improve the efficiency of development, investment, and production, saying that it will build a structure in which it continues to yield high profitability stably in the long run. Focusing on the long term, GM will continually invest a certain amount every year without being influenced by economic fluctuations and will build a structure in which it begins to cooperate with main suppliers at an early stage of development. It will also halve both the number of platforms and types of engines in about 10 years, thus improving management efficiency.

 In February 2012, the car maker announced that it would take a 7% stake in PSA and will form a comprehensive alliance including joint procurement of parts and joint development of platforms. It will rebuild its business in Europe, which runs a persistent deficit, and will also cooperate on a global scale, thus producing a synergy effect of USD2 billion a year.

 In its model plan, GM introduced fuel-efficient small passenger cars including Chevrolet Cruze/Sonic for the last two to three years, and will introduce models such as the Malibu new midsize passenger car and the Spark mini car in 2012 in order to further increase sales.

 Concerning the introduction of electric vehicles, GM launched the Chevrolet Volt plug-in hybrid vehicle in November 2010 and its sister model, Opel Ampera, in Europe in February 2012. The car maker will increase the number of models that use "eAssist" mild-hybrid system, planning to sell about 70,000 vehicles equipped with the system in 2013.

Related reports:  New regulations on fuel economy in U.S. and compliance plans among OEMs (2) (November 2011)
GM Europe (January 2012)