General Motors (GM) said it can save $200 million per year by improving resale values of its vehicles, Bloomberg News reported.
GM’s residual values rose to 44% last year from 36.5% in 2009 when the company went through bankruptcy reorganization, according ALG Inc.
According to GM North America CFO Chuck Stevens, the company’s lower resale values relative to rivals mean it spends an additional $150 million to $200 million annually to make its lease payments competitive. Stevens was speaking to analysts March 27 at a Bank of America Corp. forum in New York.
“The key will be great products and pricing and incentive discipline,” Stevens said.
Source: Bloomberg
