What could be on the chopping block?
US automakers were forced to shut down their production facilities during the first half of 2020, causing many of them to rethink their spending for the year ahead. Lincoln had to cancel its upcoming electric vehicle collaboration with Rivian as a result and it looks like fellow American automaker General Motors may be forced to make some cuts as well.
GM is now back to producing cars after a two-month shutdown but during that time, the company has made some significant changes. "We were quickly able to take out significant costs and we are being very conservative about what costs we turn back on," GM CEO Mary Barra told Automotive News "I believe we will come out of this with a lower cost structure that is permanent."
Part of the cost-cutting mentioned by Barra includes reducing the number of vehicle platforms used by GM's brands. GM will also limit the complexity of those platforms (likely meaning trim levels) to focus on the best-selling versions that consumers want most. Barra mentioned that the company examined its line-item expenses during the pandemic and "found things that we don't need to do and things we can do more efficiently."
We know the recent pandemic delayed the reveal for the upcoming 2021 GMC Hummer and Cadillac electric SUV but GM is still adamant that both cars will arrive on schedule, while the Chevrolet Corvette convertible will now launch as a 2021 model instead of a 2020 as originally planned. GM still plans to push ahead with new EV models so when we do see these cost-cutting measures put into action, it will likely be on the company's ICE vehicles. Expect to see greater levels of platform sharing and trimmed down product lineups, which will make shopping easier in many ways.