Sunday, December 2, 2012

Why GM still holds many promises?

Fritz Henderson, COO & President (Global), General Motors Corp. writes in B&E on why GM still holds many promises, despite criticisms and obstacles galore!

B&E: What are the reasons behind GM’s falling sales and what has the company done to ensure a sustainable future?
FH: The market is quite challenging. What we see is volatility in the market, and therefore you cannot have workable future strategies. The doubling of crude oil price in the last nine months, the housing market crash, all such factors have affected the American consumers and we will respond to this. We are already building a fuel efficient 1.4L engine for the American market.

B&E: On which alternative fuel system will you put your money? How feasible is such a system in the long term?
FH: Our strategy is based on multiple energy avenues as we are frankly not sure in which direction the market will move. We think that ‘electrics’ are more feasible in the future at this time.

B&E: What seems to be the real problem at GM right now?
FH: The problem that we face right now is that some of our products are extremely profitable and some are not. We want all our products in the portfolio to contribute to our profits and bottom lines.

B&E: Despite the fact that SUVs are no longer a feasible option, GM continues to be dependent on its SUV strategy. Why?
FH: The SUV segment continues to be one of the biggest segments in the American market. And I think sales of SUVs are affected by and are directly related to the housing market condition more than by rising fuel prices..


Source : IIPM Editorial, 2012.An Initiative of IIPM, Malay Chaudhuri

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