In the face of mounting economic signals that a downturn may be approaching, General Motors is steering its business strategy toward resilience and financial discipline while reshaping production lines and workforce structures to reduce risk and preserve cash.
This approach reflects a growing sense among automotive executives that macroeconomic weakness is inevitable, and that traditional industry patterns of inventory buildup and reactive discounting could jeopardize profitability during a slowdown.
During a panel session hosted by the Federal Reserve Bank of Chicago in Detroit, GM Chief Financial Officer Paul Jacobson laid out the company’s pragmatic plan to minimize exposure to cyclical swings in demand.
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