A GM executive has said that the company will post ‘good’ results for the second quarter. In the first quarter GM posted a profit of US$445m, ending a five-quarter loss-making streak.
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“At GM, the turnaround is progressing … you’ll see a good second quarter,” Bo Andersson, vice president of global purchasing and supply said during a speech at the Automotive News Europe Congress being held in Vienna.
He also said in an effort to improve “the ratio between revenues and costs” he was hoping to improve the company’s supply chain.
Andersson acknowledged though that focusing the supply chain solely on low-cost Asian countries isn’t a solution as exports to North America or Europe cause a premium of 10% in transportation costs.
Last year, GM saw a turbulent year with decreasing market share and an unfavourable cost structure resulting in a US$10.6bn loss.
GM hasn’t provided earnings guidance since last April.
