GM to cut US$5.5B to offset investment in autonomous vehicles
GM says it will start testing a fleet of self-driving Chevrolet Volt plug-in hybrid cars late next year
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MILFORD TOWNSHIP, Mich.—General Motors plans to cut $5.5 billion in manufacturing, purchasing and administrative costs during the next three years, helping to finance a big push into autonomous cars and car- and ride-sharing services.
The company is telling investors that the savings will more than offset increased investments in brand development and technology.
GM says it will start testing a fleet of self-driving Chevrolet Volt plug-in hybrid cars late next year at its giant technical centre campus north of Detroit. It also announced two car- and ride-sharing services that it expects to generate added profits.
The company said Thursday during its annual investor presentation that global growth initiatives will increase earnings per share over present levels.
CEO Mary Barra says GM sees new mobility trends as an opportunity for the company to disrupt the auto business.