General Motors (NYSE:GM) plans to operate with a lean cost structure as it prepares for increased competition in the U.S. automotive market, Chief Financial Officer Paul Jacobson told the Financial Times in an interview published Monday.
Jacobson said international automakers facing greater competitive pressure from Chinese manufacturers in overseas markets could increasingly focus on the United States, where Chinese vehicle imports are effectively prohibited.
The CFO said the U.S. was becoming an “outlet for global automakers” facing pressure from China in international markets and seeking an alternative market in the United States.
GM Focuses on Maintaining Competitiveness
Jacobson did not comment on the possibility of Chinese automakers entering the U.S. market directly.
However, he said GM needed to ensure its operations remained as competitive as possible as the company prepares for changing conditions in its domestic market.
His comments followed remarks last week from U.S. President Donald Trump regarding the possibility of Chinese automakers establishing manufacturing operations in the United States.
Trump said he would “be OK” if Chinese companies wanted to build vehicle manufacturing plants in the country, provided they employed American workers.
The comments introduced the possibility of Chinese manufacturers producing vehicles domestically, although the source did not indicate that any specific Chinese automaker had announced plans to enter the U.S. market.
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