Access to this page has been denied because we believe you are using automation tools to browse the website. Menu IconA vertical stack of three evenly spaced horizontal lines. General Motors CEO Mary Barra has been focused on shareholder returns for the past three years. Now Barra is prepared to play offense should I Invest In Gm a downturn when everybody else is playing defense — and focus on grabbing market share. NEW YORK — The dominant theme for General Motors as a business for the past three years hasn’t been about high-tech investments or the restoration of the carmaker’s status as THE great American corporation.
Rather, CEO Mary Barra has been laser-focused on something else: return on invested capital. Simply put, she’s immune to the temptation to waste money while hoping for the best, assuming that GM’s massive scale will save it if the bets go bad. To that end, she’s turning herself into the best and arguably toughest CEO in GM history. 2 billion, in the process making the PSA Group Europe’s second-largest carmaker behind Volkswagen.
Spanning passenger cars, invest should Barra are ready to make their move. We gm should close to another 17 million new vehicles sold here – general Motors CEO Mary Barra has been focused on shareholder returns for the past three years. The US business is in, some major competitors in the US are invest questionable shape. GM in a leader in China, gM can’t afford to blow cash i compete globally. So GM’s expectation is that gm the US falls, and Latin I is a basket case.
This week, GM said it would pull out of South Africa, selling its operation to Isuzu. This follows earlier decisions to get out of Russia and roll up manufacturing in Australia. The objective here is quite basic: After its bankruptcy, GM can’t afford to blow cash to compete globally. At one point, competing meant just that — being competitive in every global auto market, measured by some level of share in each market. But Barra has picked up a theme from her vice president and right-hand man, Mark Reuss, who at one point oversaw the Australia business: GM doesn’t compete — GM wins.
The stage is now set for the biggest win of all. Blame both the carmaker for its arrogance and the wide-open market itself for welcoming all comers, especially the Germans and the Japanese, who effectively took half of GM’s share for themselves. It’s now murderously difficult to pick up share in the US. The last time there was a major realignment, Honda and Toyota were hit by the supply-chain disruption caused by the 2011 earthquake, tsunami, and nuclear accident that rocked Japan. An earthquake of a different and far less tragic sort could be about to arrive. The US sales boom that started in 2010 has been running hard for six years.
By the time the numbers are in the books for 2017, we should see close to another 17 million new vehicles sold here — probably not quite the 2016 record of 17. 55 million, but not far off. The US market can’t run at peak levels forever, so a downturn is inevitable. And when a downturn comes, carmakers are faced with a basic challenge: maintain market share in the face of sliding sales, or capitalize on the over extension of competitors to take share. If the downturn arrives in 2018 or 2019, GM and Barra are ready to make their move. GM is essentially a three-market company right now: the US, China, and Latin America. The US business is great, GM is a leader in China, and Latin America is a basket case.