The car business is tuning into a mutual admiration society. Volkswagen wants to be like Toyota, Toyota wants to learn from Nissan. Now, GM wants to learn from Volkswagen. GM’s Vice Chairman Stephen Girsky says that the new benchmark for GM is Volkswagen.
“We are envious of their profit margins. If we get as good as they are, then everything will be alright.”
This is what Girsky told Germany’s Handelsblatt in New York. GM has to make do with an operative margin of between five and six percent. Volkswagen can do eight to nine. GM, the company that had to euthanize brands to survive, looks admiringly at Volkswagen which is successful in “managing multiple brands while controlling costs through common parts.”
The mutual admiration society is accepting new members. Anybody ready to admire GM?