General motors turnaround trail - By: casandra

After a year of turmoil, things suddenly look bright for General motors. The world largest carmaker kicked off 2007 with a slew of positive news. First it won the car of the year awards at the North American International Auto Show, for the first time in the history, beating its bete norie, Toyata. While its Saturn Aura emerged as the top car model, ahead of Toyota Camry which ruled the US market for the eight years; the Chevrolet Silverado, one of the GM‘s biggest money spinners, won the “Truck of the year” award. The Aura is the important step in our ongoing product revitalization plan, and this award is proof that our effort are paying off,” said a top company official. This was the first time that car from GM’s stable got the top honors, thereby ending a lull of almost a decade since its Corvette model won this award in 1998.Many dubbed it as a promising re-emergence for GM,which could be bad news of the Big Three: Ford and Chervrolet.” After GM’s near brush with death, they got their act together and become a more formidable force. That’s more dangerous for other domestics than the international automakers,” Detroit dominance under the hybrid car market in the US where the Toyota Pirus rules the roost, GM recently launched its first car with electric motor in its Chervrolet Volt Sedan, though it is years away from hitting the market,” Taken together ,the Volt’s debut and the car and truck award signal that GM is beginning to reap the benefits of turnaround plan that includes massive job cuts and plant closers,” stated Aaron Bargman,Automobile Analyst, Global Insight, as quotes on MSNBC website .Absolutely so as its fabulous achievement at the Detroit show now proves to plug the gap with its Asian rival.
In another positive development ,the company ,during 2006,successfully trimmed $9bn in fixed costs, I.e., about $2000 from every car it sold , exceeding its target of $6 bn reduction and is looking ahead to cut even more.
As part of GM’s restructuring, nearly 30000 workers were lai9d off and its North American production capacity was cut down by close to one-third.
Narrowing the gap further with its closet competitor,Gm is now standarding its manufacturing capacities across the globe .And ,top it all ,its Saturn model, which debuted in 1990 as GM’s answer to small car of rivals and had once been a hot brand for the company ,however, became, what Forbes called “the metaphore for all of GM’s ills” just two years ago, is now leading the rival.” it’s a no-excuses product lineup,” GM’s Vice chairman for global product development ,in an interview.

About the Author

Casandra Parker has written many financial posts concentrating on personal finance solution that help people to make financial decision in right direction.

Article Directory Source: http://www.articlerich.com/profile/casandra/77799

Additional Articles From - Home | Finance | Personal finance