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General Motors

Team Global Knights 2: Dylan Bashore, Shandra Blunck, Kristy Kochan, Amy Mullin. General Motors. History. Founded by William “Billy” Duran on September 16, 1908 Leading manufacturer of horse-drawn vehicles The Buick Motor Company was the first. 1910-1929.

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General Motors

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  1. Team Global Knights 2: Dylan Bashore, Shandra Blunck, Kristy Kochan, Amy Mullin General Motors

  2. History • Founded by William “Billy” Duran on September 16, 1908 • Leading manufacturer of horse-drawn vehicles • The Buick Motor Company was the first

  3. 1910-1929 • Opened up over a dozen new plants outside the U.S. • “a car for every purse and purpose” • The Cadillac LaSalle

  4. 1930-1959 • Developed war supplies for allies • People wanted goods that had been out of reach for so long • Buick Roadmaster, the Chevrolet Corvette and BelAir, and the Cadillac El Dorado

  5. 1960-1979 • Increased environmental concerns and increased gas prices • First production car that offered an air bag in 1973 • Guidance and navigation system for Apollo 11 • Lunar Roving Vehicle

  6. 1980-1999 • Focused more on growth • Opened new complex in Zaragoza, Spain in 1982 • Joint ventures with China and India • Added Saab and Hummer

  7. 2000-Present • Hybrid cars and engines that use biofuels • The Precept, AUTOnomy, Hy-wire, Sequel, and Chevrolet Volt • Shell Hydrogen • The first hydrogen pump at a Shell gas station

  8. Industry Conditions • General Motors Top Competitors • Chrysler • Ford Motors • Toyota • Retail Niche • Auto Manufacturing (primary) • Auto Parts Manufacturing • Financial Services • Telecommunications Services Cable & Satellite Services • Worsening Economy • Potential drop in auto sales

  9. GM Overview vs. Toyota • GM employees: 266,000 • Toyota employees: 299,934 • Today both companies only hold about 13.5 % of the global market share in the automotive industry. • GM Total Rev (Sep 08 Quarterly): $37,941 mil • Toyota: $62,586 mil • GM Gross Profit: $3,020mil • Toyota: $8,531 mil • GM Net Profit Margin: -6.98% • Toyota: 1.66%

  10. “In Global Race, G.M. Wins by a Day of Pickup Sales” • In 2007, G.M. and Toyota essentially tied in sales when G.M. only sold approximately 3,000 more vehicles than Toyota. • This was despite industry leaders beliefs that Toyota would take over as the Number 1 auto dealer. • Despite the increase in sales, G.M. remains unprofitable in the U.S. and Toyota’s profits in the U.S. continue to rise.

  11. “In Global Race, G.M. Wins by a Day of Pickup Sales” • G.M. is doing everything in it’s power to regain profitability in the U.S. and is willing to forego being the Number 1 auto dealer to do so. • G.M. profits in global aspects however on the rise.

  12. Saturn- G.M.’s Defense • Saturn was created as an “import fighter” in the G.M. lineup • It was introduced in 1990 and performed very well capturing 75% of sales from outside G.M. • Stopped performing well due to G.M. stopping continuing funding like it should have

  13. Saturn- G.M.’s Defense • Now G.M. is pouring major funding back into Saturn to revamp its models and use it once again as it’s “import fighter” to help capture sales • It’s working as Saturn is getting onto more shopping lists of potential buyer’s and converting lookers into buyer’s like never before

  14. Possible New Strategy According to Research • Consolidate line by eliminating single retailers like Pontiac/Buick/GMC dealers and transform them all into Chevy dealers selling the same full line of cars. • Only the strongest dealers would survive after this consolidation. • It would allow G.M. to offer a car for every “purpose” and “purse” under one roof like the brand was initially intended to do.

  15. GM Global Sales • Sales are down in U.S. • Sales increasing in Emerging Markets

  16. Challenges • BEMs are High Context Cultures • Incipient and Latent • Asian Countries • Rational vs. Emotional • Standardization vs. Adaptation • Translation

  17. GM Promotions in U.S. • “Our Country, Our Truck” • John Cougar Mellencamp • Ethnocentric

  18. GM Promotions in India Chevy Spark Chevy India Promotion

  19. Research Objectives • More Global Research • Focus on Researching Incipient and Latent Markets • China • High Context Cultures • Qualitative • Ex. Personal Interviews • Standardization vs. Adaptation

  20. Marketing Implications • Develop product and promotional campaign for China • Polycentric • Product and Promotion Adaptation • Regio-centric Approach • Latin America, Africa and Middle East • Standardization within regions

  21. Questions 1. Who founded GM on September 16, 1908? • Sangwon Lee • William “Billy” Duran • John Cougar Mellencamp • Henry Ford

  22. Questions 2. What approach did GM implement when moving into India? • Polycentric • Regio-centric • Ethnocentric • Geo-centric

  23. Questions 3. GM was the first to offer this feature in their cars in 1973. What was it? • Anti-lock brakes • Fuel efficiency • Air bag • Trunks

  24. Questions 4. GM has been the automotive industry leader for the past several decades and will most likely be the top performing company for the 2008 fiscal year. • True • False

  25. Questions 5. What country did GM receive the largest sales increase from? • Pakistan • Egypt • Germany • India

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