Ahead of General Motors releasing its full-year and fourth quarter results today (24 Feb), one analyst maintains the automaker’s bankruptcy allowed it to make the most of unique circumstances.
“GM certainly capitalised on the unique opportunities afforded by the unusual version of a bankruptcy it went through, and so comparisons with past years must be taken with a grain of salt,” said Edmunds.com CEO Jeremy Anwyl.
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“Going forward the company needs to maintain fiscal discipline, but we see GM engaging in huge marketing plays and high incentives, probably because the new marketing leadership is under tremendous pressure to deliver results.
“GM believes its investments will pay off but marketing success is unpredictable. Also, the next UAW negotiation is looming and that could present a challenge for GM.”
Anwyl adds that despite the turnaround in GM’s financial performance, the UAW could well be more restrained as bankruptcy still looms so large in its memory.
Equally, he believes the union does not exert quite the influence it once did.
GM’s results are thought to see the manufacturer post a healthy profit.
