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GM Aims to Streamline its Backroom Operations

New Global Business Services group targets 30% cost cut in four years.

by on Jun.10, 2013

GM's Diana Trombley is reassigned to help the maker streamline its back-office operations.

Anyone who has read the Dilbert comic strip knows how inefficient corporate America can be. Even the simple act of getting reimbursed for expenses can be a frustrating process, and the challenges are even greater for suppliers and other vendors.

General Motors wants to streamline its back-office operations and is launching a new Global Business Services group to handle various duties that might currently be assigned to a number of different operations, everything from hiring new personnel to handle expense reports to contracting and paying vendors.

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The new group not only should reduce complexity and improve service quality, says Dan Amman, GM’s chief financial officer, but reduce related costs by as much as 30% over the next four years.

“Every dollar of efficiency unlocked through Global Business Services is a dollar we can put back into our vehicles for our customers or is a dollar we can take to the bottom line,” contends Ammann.


GM Europe Coming Under Tough New Scrutiny

Balance sheet bleeding again.

by on Nov.09, 2011

Opel's declining market share is weighing down the General Motors balance sheet.

General Motors faltering European operations are coming in for additional scrutiny from GM’s top management after posting a loss for the third quarter – and putting an end to hopes of finally staunching the flow of red ink at the troubled subsidiary.

GM Europe finished the quarter reporting an EBIT-adjusted loss of $300 million. Overall, GM earned $1.7 billion in the third quarter, compared to $2 billion during the same period in 2010, the 15% decline largely the result of problems in Europe and Latin America.  (Click Here for more on GM’s second quarter results.)

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GM Chief Financial Officer Dan Ammann lamented that, “We have to do a better job in Europe and South America. The results there are just not sustainable.”

GME had shown some positive signs by breaking even during the first quarter of 2011 and turning in a modest profit three months later, but the latest figures raise questions about forecasts that the European subsidiary will be able to push back into the black for all of 2012.