General Motors touting its global reach to potential investors

Article by Christian A., on August 27, 2010

To attract investors, General Motors Co. is directing attention to its global reach. In a filing it submitted last week for an initial public offering of stock, GM said that currently, about 17% of its vehicles are built off common global platforms but that by 2014, they will comprise more than 50%.

GM is expected to have huge savings on engineering and production with the use of common designs and standard vehicle parts.

The IPO filing indicated that GM's budget this year for engineering and capital expenditures amounts to $13 billion.

The company also pointed out that it is building more factories in emerging nations. Currently, about 43% of GM's vehicles are made in low-cost countries, including China and Mexico, where GM pays workers less than $15 an hour for both wages and benefits.

About 17% of GM vehicles are made in medium-cost countries, including South Korea and Brazil, where GM pays its workers between $15 and $30 an hour for wages and benefits combined.

Meanwhile, GM has a total of about 52,000 UAW workers in the US, with each earning about $55 an hour with wages and benefits combined.

With this set-up, GM is expected to hasten progression to common vehicle platforms. GM's IPO indicated that between 2010 and 2012, the carmaker will launch 19 vehicles in North America and in 2013 and 2014, it will release 27 vehicles.

Being able to move quickly to common vehicle platforms will help GM optimize its manufacturing flexibility to make vehicles anywhere in the world without needing to add a major capital investment. [via autonews - sub. required]

Topics: gm, investment

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries