GM Exxon Says First Half Profits Need to Further Cut Costs

GM’s profit for the first half of the year was as high as US$6.3 billion, which was the highest year-over-year profit in 20 years, but General Manager Dan Ickerson still asked for further cost reductions. It seems to be sending a message to employees that the profit in the first half was not good.

GM's chief financial officer Dan Ammann and Exxon are currently reviewing product projects, cutting marketing expenses, consolidating their engines and vehicle manufacturing platforms. General Motors even shut down some of the office's thermostats.

In the first half of this year, GM’s operating profit margin was 5%, while Ford’s operating profit margin was 7.5% and VW was 7.8%. GM has always expected to surpass Ford and Volkswagen in operating profits and regain the throne of global sales championships.

General Motors has not announced its third-quarter financial report yet. Analysts predict that its net income in the third quarter will fall from $2.16 billion in the same period last year to $1.6 billion.