GM Builds New Plant to Catch Up With Ford
As a part of CEO Dan Akerson’s plan to raise General Motors’s (NYSE:GM) margins, the company is opening a $200 million metal-stamping plant in Arlington, Texas, The Wall Street Journal reports. The plant is located next to a General Motors assembly plant, which will help the No. 1 U.S. automaker save $40 million per year in shipping costs.
Akerson told the Journal that his goal is to raise General Motors’s margins from 8 percent to 10 percent, which will reportedly result in savings of hundreds of millions of dollars per year.
“We spend billions a year on logistics,” Akerson said to the Journal. “Think about that, billions. Any savings I can get by cutting my logistics bill goes right to my bottom line and makes us more competitive. I’ve told our teams that we need to make this a priority to look across the organization and take the steps to cut the costs.”