general motors

1. GENERAL MOTORS
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2. ‘GENERAL MOTORS’

3. GENERAL MOTORS
General Motors is the worldwide leader in car
manufacture, with a 17% share in the world auto market.
Its products are sold in over 170 countries, and its
manufacturing base is spread across 43 countries and its
annual production is roughly 83 lakh vehicles.
It manufactures a variety of vehicles, like the
Chevrolet, Pontaic, Cadillac, Oldsmobile, Opel, Saturn,
Geo, Vauxhall, Holden and many more.At the forefront
of technological innovations in the automotive sector,
General Motors, since its inception in 1908, has always
stood a shade above the rest. In 1911, it introduced the
electric self-starter, in 1933, developed the front wheel
suspension, called the Knee - Action.

4. OVERVIEW OF GENERAL MOTORS
INDIA
 General Motors India, incorporated in 1994 as a 50-50 joint venture company
with the C.K. Birla Group of Companies, became a fully owned subsidiary of
GM in 1999 when GMOC bought the remaining shares. The company was
restructured in 1999 and was converted from a Public Limited company to a
Private Limited company. GM currently holds 86 percent of voting shares,
and Holden (Australia) holds 14 percent.
 In India, GM strengthened its presence with new product launches Chevrolet
Optra in 2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. Similarly
in 2006, GM India is expected to register a growth of 90% over 2005.
 With sales volume going up, the market share of GM India has gone to nearly
3%. The sales volume in 2005 was 25,155 units while 2007 figure is expected to
be around 42,000 units.

5. FACILITIES IN INDIA
 The existing GM India plant was originally built by Hindustan
Motors. In 1994, GM India entered into a 50% Joint Venture
partnership with Hindustan Motors and modernized the 45,000-
square-meter plant near Halol, 45 kilometers northwest of Vadodara,
in the western state of Gujarat.
 In February, 1999, GM bought the holdings of Hindutan Motors and GM
India became a 100% subsidiary of General Motors Corporation of USA.
The plant produces the Opel Corsa, Corsa Sail, Chevrolet Optra,
and Chevrolet Tavera. The Chevrolet Forester and Opel Vectra are sold
as CBUs (Completely Built in Units) and as imported from Japan and
Germany.
 GM India's Dealer network and after sales support system are fully
functional and provide solid backing for their customers after they
purchase the product and help assure total customer satisfaction and
enthusiasm.

6. MISSION STATEMENT
G.M. is a multinational corporation engaged
in socially responsible operations, worldwide.
It is dedicated to provide products and
services of such quality that customers will
receive superior value while our employees
and business partners will share in our success
and our stock-holders will receive a sustained
superior return on their investment.

7. THE G.M. VISION
GM’s vision is to be the world leader
in transportation products and
related services. We will earn our
customers’ enthusiasm through
continuous improvement driven by
the integrity, teamwork, and innovation
of GM people.

8. SWOT ANALYSIS
STRENGTHS
 Size and market share
 Technology potential
 New leadership
 Quality improvement and perception thereof
 Model acceptance has improved
 Benefits derived from adopting to the new strategies
 Structural apporach and relationship

9. WEAKNESSES
Failure To Make Technology Work
Relationship With UAW
Product Design Problems: Public Acceptance And
Reduction Of Cycle Time
Market Share And Profitability Ratio over a period of
time
Still Much To Learn About Lean Production - High Cost
Producer
Too Much Vertical Integration

10. OPPORTUNITIES
 Use of knowledge gained from saturn experince and
toyota (nummi) joint venture.
 Expansion of their global presence.
 Continue to build on the newfound customer
confidence.
 Changing consumer demand for new model types and
styles
 expansion and leadership

11. THREATS
 Domestic and foreign competition
 Consumer lawsuits
 Foreign legislation and regulation
 Declining quality of the infastructure in this country

12. FOUR WHEELERS PRODUCT RANGE CARS
 Chevrolet-Aveo
 Chevrolet Optra
 Chevrolet Tavera
 Chervolet Tavera Neo
 Opel Astra
 Opel Corsa

13. WHAT IS GM'S STRATEGY IN INDIA?
 GENERAL MOTORS is one of the largest corporations in the world. In
1999, based on foreign asset holdings, the UN's World Investment Report
(2001) ranked it No 4 among the top 100 transnational corporations.
 GM has expanded through greenfields too but makes foreign acquisitions
also a part of its global strategy.
 India has a fraction of GM's total foreign assets of $68.5billion (25 per cent
of total assets).
 GM continued its subtle Indian presence through technical collaboration
with Hindustan Motors, India's flagship car company until 1985. It is this
partnership that brought GM and HM together in the 50:50 Halol joint-
venture.

14.  GM as an American company in India is making a German
product for the Indian market, using imported Brazilian
engines, and using Indian labour and components. Local
content is 60-70 per cent.
 It is also true that GM has deep pockets and its Indian
operation is minuscule. Yet, we should not forget that GM can
expand by acquiring foreign companies. So far it really has not
acquired much except to buy HM's 50 per cent share.
 A few years ago it secured a 20 per cent stake in Fiat. While
GM has allowed these companies to run autonomously,
capturing market share through acquisition is a sound
strategy for global expansion.

15. INDIAN STRATEGY
1. GM has stakes in Suzuki Motors (20 per cent), Isuzu (49 per cent),
and Fuji Heavy Industry (makers of Subaru 20 per cent).
2. Furthermore, Government has initiated the gradual process of
privatisation. With the latest disinvestments, Suzuki has even firmer
control in India and, indirectly, GM.
So what does this all amount to?
1. GM's grip on the Indian market may be far greater than
what meets the eye: A 100 per cent affiliate, indirect
engagement through Daewoo and Suzuki, and a partner
in India's largest auto venture MUL

16. NEW GLOBAL STRATEGY OF
GM
They are focusing on four key things," said General Motors
President and Chief Operating Officer:
 Leveraging our capabilities as a single GM global automotive
unit
 Driving for stretch results
 Pursuing goals with a sense of urgency
 Product success around the globe

17. WHY GM IS SERIOUS ABOUT BUYING
CHRYSLER?
[AS A PART OF GLOBAL STRATEGY]
 General Motors has a detailed strategy for merging the two car
companies. But it still needs a bargain price and union concessions to
make the deal work.
 There now no doubt that General Motors (GM) is interested in Chrysler.
It's even more obvious that its German parent, Stuttgart-based Daimler
Chrysler (DCX), wants to cut it loose. GM executives have recently
looked closely at the benefits of a deal, even before Daimler Chairman
Dieter Zetsche said he would consider selling the company.
 GM executives have also war-gamed specific strategies for cutting
costs and streamlining operations if they do acquire Chrysler. They
have picked through various product lines to determine whether two or
more can be built on the same platform to trim costs and simplify
purchasing.
 GM executives also see an opportunity to improve Chrysler's
profitability by buying parts from around the globe.

18. ‘OUTSOURCING STATEGY’ OF GM
 Many companies have their own technology and process
standards, but getting suppliers to conform to those standards
is no mean feat -- unless the company is General Motors (GM).
With $15bn (£7.5bn) in IT spending on the table, the car
manufacturing giant has plenty of leverage to get what it wants
from suppliers
 Earlier this year, the company concluded a monolithic, 10-year
outsourcing agreement with Electronic Data Systems (EDS), broke up
the work and awarded the bulk of $7.5bn (£3.75bn) in new contracts to a
small group of service firms that included EDS, IBM, Capgemini,
Covisint and Wipro. It also moved to shorter, five-year agreements.
 The changes at GM were driven by the need for cost savings
and greater flexibility and the need to re-engineer the way the
company operates IT globally.
 GM outsources most of its IT operations and has about 2,000 employees
who handle "strategic management of information technology"

19. GM’S ‘E-BUSINESS STRATEGY’
 GM's labor costs are fixed, meaning they remain the same regardless of what
the volume of sales is. GM wanted to keep factories open as much as possible.
"Analysts added that the reason for the decline in GM's US market share
was that it had failed to introduce new models that customers wanted in
quick time. To address this challenge, GM made e-business a strategic
priority. It wanted to reinvent itself by embracing e-business across its
value chain.
 In August 1999, after a year of research in collaboration with Forrester
Research , GM launched a business division called e-GM that was responsible
for all of the company's websites and its OnStar communication system .
Through this initiative, the company planned to reduce costs, improve
quality and boost demand for its products.

20. HYBRID STRATEGY’ OF GM
 General Motors Corp. offered detailed plans to boost the fuel economy
of its most popular cars and trucks by as much as 50 percent,
beginning with two pickup trucks in the 2007 - model year. Overall
gains in fuel economy will range from 15 percent to 50 percent, with the
biggest increases going to the 2008 version of the compact Saturn VUE sport
utility vehicle.
 GM will rely on hybrid gas-electric technology, and possibly hybrid
diesel-electric engines, to dramatically crank more miles per gallon.
 GM is the world's largest car company. If it is successful in winning
widespread consumer acceptance of hybrid petroleum-electric
vehicles, it could change radically the kinds of engines and propulsion
systems that could go into future cars and trucks.

21. ‘REUSE STRATEGY’ OF GM
 Parts reuse based on a common database will reduce
engineering time, save money, and serve global ambitions.
 When General Motors Corp. set out to design its Cadillac XLR, a
flashy new two-passenger roadster with a retractable hardtop, it
borrowed the frame from Chevrolet's Corvette, a classic
American sports car.
 GM is expanding its parts database of 40,000 3-D CAD
models--representing everything from gas caps to headlamps
to suspension systems--for its North American vehicles to
incorporate information on parts used in cars built for the
European and Asian markets, which often conform to different
regulatory requirements and standards.

23. KEY FINDINGS
 Cost - GM’s cost is too high as compared to its competitors
 Quality – GM has marginal quality products, but due to the
competition it has been continuously upgrading, with the help of its
product quality attributes
 Product line and segmentation - price and function wise G.M. is
ok
 Suppliers - G.M. is too vertically integrated
 Buyers – Buyers of General Motors generally are of those who
prefer Sport utility and pick-ups vehicles.
 New entrants - Not likely a threat
 GM's operations in India combine Indian ingenuity, American
management know-how and German engineering to produce
premium automobiles in a world class manufacturing environment.

24. RECOMMENDATIO
NS
 Focus resources on core products, cars, & trucks.
 Realignment of organizational structure to support core
products and meet costs & quality goals.
Example: self managed creative work teams to figure
out how to speed-up product development &
improve product development.
 Implement common systems & processes where
possible.
 Balance needs of employees and unions with needs of
the company.