March 27, 2013 / 4:25 PM / in 5 years

GM laying groundwork for 10 pct margins in mid-term -exec

DETROIT, March 27 (Reuters) - General Motors Co is laying the groundwork for 10 percent margins over the next several years through “a fairly significant improvement” in both revenue and cost structure, GM North American Chief Financial Officer Chuck Stevens said.

The largest U.S. automaker needs an additional $2.5 billion to $3.5 billion in earnings against its current revenue base to reach that goal, Stevens said on Wednesday during an investor conference held on the same day as the New York auto show.

Over the next four years, GM will be launching new vehicles at twice the pace of the previous four years, Stevens said. By 2016, nearly 90 percent of GM’s sales volumes will be drawn from recently launched models, which will help boost vehicle prices.

Stevens said he expects GM to double its entry-level hourly workforce in the United States over the next two to three years. These workers make less money than veteran workers.

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