Can GM Grow Its Revenue And Keep Costs Under Control?

-6.76%
Downside
44.59
Market
41.57
Trefis
GM: General Motors logo
GM
General Motors

General Motors (NYSE: GM) has seen its Automotive Revenue generated per dollar spent on operating activities (production, marketing, research and development, etc.) compress in recent years. This metric declined notably between 2013 and 2014 due to the impact of a strengthening dollar. However, over the same period, the U.S. auto market has been growing strongly. Strong SUV, Crossover and truck sales, along with expectations of a recovery in China, mean that we expect GM’s operational efficiency to return to 2013 levels by 2016 and improve thereafter.

gm opef

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1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for General Motors

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