Increasing Profits by Reducing Complexity and Focusing on Customer

After almost 20 years of losses, GM’s former European division is profitable one year after being sold to the parent company of Peugeot/Citroën. There are obviously many reasons, but some that stood out to me:
– an agreement with labor to trim salary costs by reducing the standard workweek to 35 hours from 40.
– assembly output reduced in Rüsselsheim to 42 vehicles per hour instead of 55 to “focus on cars customers actually want to buy.”
– On the Corsa model which starts at about $14,000, there are 10 possible infotainment systems, down from 57 (!) and there are now 9 windshield / wiper options, down from 16.

-Danny Schaeffler, and

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