GM plans $5.5B in cost savings

Oct. 1, 2015 – According to the Associated Press, General Motors has announced plans to cut $5.5 billion in manufacturing, purchasing and administrative costs during the next three years, which it says will help to finance a “big push” into autonomous cars and car- and ride-sharing services.

The company told investors Thursday that the savings in logistics, manufacturing, information technology and other costs will more than offset increased investments in brand development and new technology.

GM says it will start testing a fleet of self-driving Chevrolet Volt plug-in hybrid cars late next year at its giant technical centre campus north of Detroit. It also announced two car- and ride-sharing services that it expects to generate added profits. The test Volts will be summoned by employees with a smartphone app.

— With files from Tom Krisher, the Associated Press