Overseas sales expansion and reduced labor costs over the next three years will bring “significant” profit increases to General Motors, CEO Rick Wagoner told analysts yesterday. Wagoner also asked investors for patience as share prices continue slipping in a worsening US economy, reports the Wall Street Journal. He said production cuts could accelerate if sales slow further.
US auto sales this year promise to be the worst in a decade as an ever-receding housing market and rising energy costs worry consumers. GM has additional baggage in its GMAC lending arm, struggling with the credit crunch. But the company anticipates market growth in China and Russia, and it says labor savings could reach $5 billion by 2011.