The economic crisis in Europe has affected General Motors’ (GM) performance, which dragged down the company’s profits by 42 percent in the second quarter. According to GM’s financial reports, its net income fell to $1.48 billion from $2.52 in the same period for the previous year (Vlasic & Ewing, 2012). Despite posting stronger business results in Asia and North America, GM lost $361 million in Europe compared to an operating profit of $102 million the previous year.
Solutions
In to reduce the losses, GM should consider focusing on developing and introducing new brands of products to customers in the European market. The company should consider removing its Opel brand from the European market and introduce more fuel efficient cars in Europe. The company should embrace new technology to reduce emissions and fuel consumptions, improve safety and improve the overall driving experience of customers.
Second, the company should consider sharpening their focus on customer engagement. This involves designing and developing vehicles that appeal and delight customers. In order to achieve this, GM must listen to their customers, follow market trends, and enhance advertising and marketing efforts to connect with customers more effectively. The company must also ensure the right technologies and feature in their vehicles to differentiate them from the rest.
The firm must also work closely with its global dealer network to ensure best sales and service experience to its customers across the globe.
GM should consider selling Opel brand and focus in other brands.
References
Lastly, GM should consider making changes to its management structure in order to endure that people live up to their job expectation.
Vlasic, B., & Ewing, J. ( August, 3 2012). “After a Loss, GM Plans Fast Action in Europe.” The New York Times.
