Carmaker_s officials seek new income, cheaper operations.
Published:
26 November 1999 y., Friday
After waging a decade-long campaign to cut costs in its assembly plants and parts factories, General Motors Corp. has shifted its attention to a new money-saving effort. The automaker wants to use the Internet to cut the cost of buying parts and of selling and delivering vehicles. An array of new electronic ventures have appeared this year, each intended to cut white-collar costs and consequently lift profits and GM_s lackluster stock price. Putting the emphasis on reducing white-collar expenses represents a significant change afoot at GM, whose cost-cutting senior executives had made factory cost reductions a pillar of corporate strategy since 1992. After losing almost $10 billion in the early 1990s, GM set out to slash its production expenses. The strategy saved cash. Last year, GM sold 8.1 million autos worldwide, a million more vehicles than in 1992, and produced them for about $118 billion, not much more than it spent on 1992_s output. «The big future challenge is going to be the role e-business and e-commerce has over the whole commercial end of our business,» said Ronald Zarrella, the executive vice president in charge of GM_s North American operations. «We_ve got to be positioned as a company to leverage that and take advantage of it.» A sign investors have overlooked the automaker_s turn of direction appears in the stock price. Closing at $73 a share Tuesday, unchanged from Monday, GM_s stock price has hardly been skyrocketing this fall. But automotive analysts suggest the new ventures could pare hundreds of millions of dollars in costs and generate at least $1 billion in income.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Software company announced new structure_ of it_s business.
more »
An award-winning South Korean film director shoots a 30-minute movie using only Apple's iPhone 4.
more »
Nintendo aims to sell four million of its new 3-dimensional 3DS game console in the first 30 days of launch in Japan, U.S. and Europe.
more »
Matchmaker Maria Avgitidis has a new love - Foursquare.
more »
Gemalto,the world leader in digital security, today announced that the MEDEA+ ONOM@TOPIC+ project has been short-listed as one of the three finalists for the EUREKA Innovation award.
more »
China again warned Google on Tuesday to obey the nation’s law with its web search engine results, amid mounting signs the world No.1 could soon shut its mainland website.
more »
Video shot during a healthcare consultation can help patients recall important information and instructions later.
more »
High-speed internet is a basic good that must be available to everyone, Europe's local and regional politicians said today in support of the 'Europe 2020' goal of bringing broadband access to every home by 2013.
more »
Wincor Nixdorf and HypoVereinsbank (HVB) have successfully completed one of the most extensive rollouts of self-service systems in Germany.
more »
Verizon Business will join the Open Identity Exchange consortium as an executive member to support a common, secure framework for access to Internet sites.
more »
You can now access books, journals, films, maps etc from across Europe via the EU's online library, Europeana.
more »