GM to halve number of vehicle frames to cut costs

DETROIT (AP) — General Motors Co. has plans to become leaner in the future, cutting costs so it will make even stronger profits than it has so far this year, company executives told industry analysts today.

The company also said it will increase factory capacity 45 percent in Brazil, Russia, India and China by 2014 to take advantage of expected sales growth in those markets.

Yet Chairman and CEO Dan Akerson cautioned that there is much uncertainty with volatility in the stock market and global debt concerns, saying it's difficult to predict what will happen to car and truck sales this year.

"There's a lot of turmoil in the business, and turmoil means uncertainty," Akerson said in kicking off the company's second annual global business conference for analysts.

GM said it plans to cut costs by halving the number of frames it bases its vehicles on across the globe. In 2010, GM had 30 frames, known in the industry as platforms.

By 2018 it plans to cut that number to 14. It also will sell more of the cars and trucks built on those platforms across the globe, saving on manufacturing, engineering and design costs. The company also plans to cut the number of engines it develops.