GM Bets on Four-Platform Strategy

General Motors Co. aims to reduce the number of platforms that carry its cars and trucks from 26 today to only four by 2025.

Analysts figure the cost of doing so will run to many tens of billions of dollars. But the move also will eventually save GM billions of dollars per year by slashing product development costs if the risky transformation is successful.

The company has little option but to try, according to analysts, who note its rivals are making similar moves. Ford Motor Co., for one, said this week it will pare its platform count from 15 to nine in two years and to eight at a later date.

Similarly, Volkswagen has predicted the "MQB" flexible front-drive platform it began rolling out two years ago will carry about 14 models, representing annual output of about 4 million vehicles, by the end of 2016.

Analysts say GM must make a similar consolidation simply to remain competitive. IHS Automotive estimates that three such super-platforms one each from Renault-Nissan, Toyota and Volkswagen will carry about 20% of worldwide passenger vehicle production by 2020.