“Nothing changes with regard to the information we provide our suppliers. They will still receive the forecasts they need to plan their businesses,” he said.
The company will also continue to provide figures to the US Federal Reserve for its monthly report on economic output, though it may decide not to break the information down by nameplate.
Traditionally carmakers report the number of vehicles produced on a monthly basis and the data is used by third party analysts to forecast production. This information is in turn used by suppliers to plan their own production schedules and, on the logistics side of the business, to allocate resources.
In the first quarter of this year GM started assigning the profit or loss on a specific vehicle to the country in which it is sold, not the one in which it is produced, stating that it would give a more accurate picture of profitability in the different regions in which it operates. It is only halting the publication of backward looking data for North American production.
“The change in our disclosure was prompted by our switch to ‘country of sale’ reporting for our quarterly earnings,” said the GM spokesperson. “Under this reporting, automotive segment revenue and profits will be reported in the geographical regions where the vehicles are sold. This new reporting method will give us improved visibility into our profit and revenue across the individual markets and product lines, which in turn will help us optimise capital allocation and drive improved results.”
“In the end, improving our business performance will ultimately be good for our stakeholders including investors and suppliers,” he added.
GM would not comment on whether the move could also help to calm share price volatility or disguise monthly fluctuations in output.
