When the pandemic struck, many automakers took drastic measures to cut costs in order to weather the economic storm.
One was GM, whose car production was shut down for the better part of two months before beginning to restart in mid-May
During the shutdown, GM reportedly initiated “significant” cost-cutting measures by exploring its expenses and cutting redundant processes. According to Reuters, GM CEO Mary Barra now believes that these pandemic-initiated cost cuts will remain in place.
During an investor event, Barra said, “I believe we will come out of this with a lower cost structure that is permanent.”
Some of the cuts include using fewer platforms and reducing their complexity, and focusing on the ones that consumers want most.
Says Barra, “We’ve found things that we don’t need to do and things we can do more efficiently.”