General Motors says it will run as lean as possible as it braces for tougher U.S. competition. Global automakers increasingly view the market as a safe haven, the Financial Times reports; GM’s operating margin is about 3.2%, leaving little cushion against price cuts.
GM’s strategy includes pushing software into its pickup-truck business, a key profit center. The article argues that software revenue can carry higher margins than steel-based vehicle production and describes full-size pickups as a durable U.S. profit pool, partly because overseas automakers lack a comparable presence.
The article says Chinese automakers’ large capacity and lower costs could pressure GM through global component prices and in markets it serves, even where tariffs keep Chinese vehicles out. It also notes that U.S. lawmakers are pressing for restrictions on Chinese vehicles while the administration reworks fuel-economy rules.
