General Motors has announced an official shift from the production of large, gas-guzzling vehicles to smaller more fuel-efficient sedans. If you didn't see this coming then you're surely living under a rock. High gas prices have forced a change in car-buyers. They simply aren't buying SUVs and larger trucks like they used to, and car companies have finally realized that the key to their financial future is changing their business accordingly.
GM's "official" announcement of the switch to focusing on more fuel-efficient vehicles is discussed in this video. The company made tons of money on larger vehicles, but has suffered in the last year. Let's hope that this wise shift in their business model will help shore up the company's financial future.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
The changing face of auto-making in the U.S.