General Motors India

8/3/2019 General Motors India

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Darshan bhatt



General Motors India

The company¶s operations outside the US, including India and all of those in

the Asia Pacific region, however, were not affected by the bankruptcy.

They became a part of the new company and continued to operate normallywithout any interruption with a new corporate structure, a stronger balancesheet, and a renewed commitment toward customer centricity

Background

General Motors Corporation has been in business for 100 years.

produced nearly 450 million vehicles globally, and operates in virtually

every country in the world.

While GM has recently enjoyed rapidly growing sales and revenues

outside the United States, the U.S. remains the companyµs largest single

market.

The auto industry today remains one of America's top employers with 1 in10

Americans working in the industry.

GM is also one of the largest purchasers of U.S.

steel, aluminum, iron, copper, plastics, rubber, and electronic and computer

chips.

U.S. auto sales across all manufacturers, foreign and domestic have declined

by

more than 30% which is the steepest decline in 50 years.

These major economic shifts demand a fundamental change in the way we

do business at General Motors.



Strategy

Brand Re-StructuringOver the next five years GM will be focusing on

restructuring of our brand while focusing on our core business.

Chevrolet, Cadillac and Buick will remain at the core of our business.

This decision is based on sales statistics that are lagging in our domestic

market. Saab and Saturn sales lag behind throughout the board and

introducing new models and re branding of these franchises this late in the

game will only push our break even point further rather than having a positive impact on the bottom line.

Pontiac will fill this market niche and will cater to the increasing youth

demographic offering entry to mid level vehicles such as the G5, G6, Grand

Prix and Grand Am.

With this brand restructuring will also come a significant number of GM

dealer closings to further reflect cost cutting initiatives.

Plan

2000 2004 2008 2013

Total Nameplates 51 63 48 40

GM Dealer Count 8,138 7,497 6,450 4,500



R ecent results

The company has reported annual profits since 2010. It can carry forward

previous losses to reduce tax liability on future earnings. It earned

$4.7 billion in 2010.

The Wall Street Journal estimated the tax break, including credits for costsrelated to pensions and other expenses can be worth as much as $45 billion

over the next 20 years.

Top 3 Automakers Global, 2010

Group Units Share

Toyota 8,557,351 11.0%

G.M. 8,476,192 10.9%

Volkswagen 7,341,065 9.4%



R esearch and development

Research and development (R&D) at General Motors began organically asthe continuation of such R&D as the various divisions (e.g., Cadillac, Buick,

Olds, Oakland) were already doing for themselves before the merger.

Its character was entirely empirical; it was whatever key people in each

company had been competent enough to organize and pursue.

Charles F. Kettering's Dayton Engineering Laboratories Company (Delco),

at Dayton, Ohio, was still an independent firm at this time.

Its work was well known to GM central management through its relationship

as a supplier and consultancy to Cadillac and Buick. In 1916, Durant organized the United Motors Corporation as an

amalgamation of parts suppliers, supplying GM and other OEMs but

independent of GM.

Alfred P. Sloan, head of the newly acquired Hyatt Roller Bearing

Corporation, became United Motors' CEO.

United Motors acquired Delco, and Kettering began his association with

Sloan.

United Motors also acquired at this time the original Remy

corporation (called the Remy Electric Company), a competitor of Delco.



DFD: GENERAL MOTORS



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General Motors India