GM's Attempt to Emulate Ford's Commercial Success Raises Questions
Sunday, 12 May 2024, 10:30
What's Ford doing?
Ford's commercial business model, particularly Ford Pro, has showcased impressive margins and growth rates compared to its traditional business, Ford Blue.
Comparing Earnings and Margins:
- Ford Blue generated $7.46 billion in EBIT, while Ford Pro closely followed at $7.22 billion.
- Ford Blue's EBIT margin was 7.3%, whereas Ford Pro achieved a much higher 12.4% margin.
Revenue Growth:
- Ford Pro saw a 19% revenue growth, outpacing Ford Blue's 8%.
The key takeaway: Ford's commercial business is highly profitable and rapidly expanding.
What's GM doing?
GM's latest initiative, GM Envolve, mirrors Ford's commercial strategy, focusing on environmental impact, fleet operations, and customer experience enhancements.
Service Offerings:
- GM Envolve offers tailored solutions for businesses, combining products and technologies to optimize fleet operations and customer services.
Conclusion: Both Ford and GM are leveraging commercial business opportunities to drive profitability and innovation in the automotive sector.
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