1. New Era: Electronic Vehicle
Steering GM: an Electric Future
By: Group 6: Bishwa Pandey, Brittoni Famous, Chelsea Grossman, Phil
Broussard, Jordan Aquino, Brent Ellis, Karen Xue, Alex Brustowicz

2. Automotive Industry: History
1901
Assembly line production
adds higher quality and
decreased costs
1860s
First gas-fueled
engines developed
1930 1940
Innovation & Consolidation
• Great Depression causes industry
to contract
• Major innovations introduced
(automated transmissions,
hydraulic brakes, A/C
1960 1975
Industry Regulation (US)
• Clean Air Act (1963)
• Vehicle Air Pollution and Control
Act (1965)
• Energy Policy and Conservation
Act (1975)
1920
Stop production of
electric cars
1997
Toyota Prius – first mass
produced hybrid vehicle
2008
Tesla Roadster – first
mass produced highway
capable hybrid vehicle

3. Industry
Rivalry
Suppliers Buyers
Potential Entry
Substitutes
Power of Suppliers (Low)
➢Various auto part manufacturers
➢Tiered suppliers
➢Industry firms ability to integrate
backward
Threat of Entry (Low)
➢ Upfront large capital investment
➢ Government policy
➢ Difficulty to reach economy of scale
for new entrants
➢ Brand recognition
Extent of Rivalry (High)
➢ Lots of competitors
➢Many existing brands
➢Relatively mature market
➢High exit barrier, large pre-production
R&D spending
➢Competitors have similar, but yet
differentiated products
Power of Buyers (High)
➢Gas price change
➢Macroeconomic environment affecting sales
➢Volatility in the market
➢Relatively low switching cost
➢Price sensitivity
➢Products with low differentiation
Threat of Substitutes (Medium-High)
➢Buyer’s tendency to switch depending on the
traveling distance
➢Attractive substitutes’ price on short-distance
options
➢Longer distance traveling not much options
➢Used cars
Five Forces: Auto Industry Important

4. Auto Industry Piston and Segmentation
Electric Vehicles
• No fuel needed
• Need recharge stations
• Usually short distances
Hybrid Vehicles
• Combination engines
(gas/electric)
• Fuel efficient (high mpg)
• Long distances
Gas Vehicles
• Higher cost to run
• Lower initial cost
• Long distances

5. Industry
RivalrySuppliers
Buyers
Potential Entry
Substitutes
Power of Suppliers (High)
➢Auto parts are internally designed and
outsourced
➢Various auto part manufacturers
➢Battery companies
➢Industry firms able to integrate backward
➢Limited skilled workers
Threat of Entry (Low)
➢ Upfront large capital investment
➢ Government policy
➢ Difficulty to reach economy of scale
with current technology
➢ Brand recognition
Extent of Rivalry (Low)
➢ Relatively new market
➢ Not yet concentrated
➢ No defined major competitors
➢ Various companies have some forms of EVs, but no
distinct positioning
Power of Buyers (Low-Medium)
➢ Limit of supply
➢Differentiated product, but not necessity
➢Industry not able to forward integrate
➢Minimally affected by gas price and economyThreat of Substitutes (High)
➢Regular gas cars
➢Lower price, similar functionality
➢Example: bus, bike, walking, cab,
Uber, train
Five Forces: Electric Vehicle Industry
Important

6. Trends & Dynamics (examples) Impact on 5 Forces
•Rivalry
•Buyer
•Substitute
•BTE
•Supplier
•Power
Total Impact on
Industry Π
•Trend #1 – Regulation
new laws encourage green environment
• Trend #2 – Technology
new battery technology breakthrough
Five Forces: Electric Vehicle Industry (cont.)
Trends & changes effect on industry structure and profitability
GM’s Advantage:
• Current buyer base
• Existing supply chain network
• Brand reputation
• Large R&D capital
Therefore, GM is likely to outperform industry average.

7. Competitive Positioning and Differentiation
Cost
High
High Low
Differentiation
Tesla
GM2
Nissan
Toyota
GM1
Narrow
Broad
Cost Differentiation
Tesla
GM
2
GM
1
GM (Currently):
• Low-Middle Cost
• High-Narrow Market Scope
GM (Goal):
• Increase the cost, moderately
• Broaden the Market Scope
Tesla
• Very Expensive, & Few Models
• Narrow Market, by cost and regulation
GM (Currently):
• Far from Productivity Frontier
• Low-Middle cost
GM (Goal):
• Move to Frontier in
Technology/Distribution
• Increase cost
Tesla
• Very Expensive, Differentiated
• Close to Frontier, limited by
Distribution

8. Steering GM in the Right Direction
GM has many options for building EV
cars, our recommendations are
designed to:
• Empower Change
• Build Strategic Advantage
• Capitalize on existing strengths
• Mitigate weaknesses
The BIG decision is: Hydrogen Car,
Electric Car, or Do Nothing
Electric
CarGMs
Options Hydrogen Car
Do Nothing
Be an imitator
Be an innovator

9. Driving to a Recommendation
PROBLEM: Current EV technology
–Many commuters drive 100+ miles per day
–EVs have half the range of comparable fossil fuel
vehicles, at best
–Minimum charging time is 30 min. for 170 miles
using Tesla Supercharge system
SOLUTION: GM needs EV car technology that can run
LONGER than EV cars now and charge FASTER

10. Revving up R&D - Show me the $$
• Currently GM spends about
$200m over three years, a
fraction of its $8bn R&D budget
on EV research
– Tesla spends
approximately $200m per
quarter
– Nissan has invested more
than $5bn on EV research.
• Increase to $400m per quarter
in Year 1 to catch up and
$200m per quarter after to
stay competitive

11. Option One: H2GO
• Hydrogen cars have been
heralded as the next step in
the green car industry.
• Higher range than industry
alternatives
• Cleaner than other fuels
• Existing GM-Honda
partnership can be leveraged
to be a first mover with this
technology
Productivity Frontier representing traditional
vehicles (in red) and Hydrogen powered
vehicles (in blue)

12. Option Two: FluidChargeTM
• Introduce GM FluidChargeTM vehicles
–Charged fluid is pumped in to replace discharged
fluid
–Ranges expected to be 500+ miles
–Similar pumping times to gas or diesel
–Option to recharge using conventional EV charging
systems
–Option for Fuel Stations to recycle waste charging
fluid through recharging system.

13. Directions to Reach our Destination
• Create an independent R&D lab to rapidly mature current
research
• Establish a test market of Texan cities and the major
Interstates that connect them
–Dallas, Austin, Houston
•Complementary FluidChargeTM pumps in existing GM
dealerships
–Allows for data collection to feed nation-wide release
–Builds customer service through tech interactions
–Builds trust of dealerships by showing commitment/investment
•Build good will with consumers through free service period
–Use service appointments to gather additional diagnostic info

14. ¿Why Invest in FluidChargeTM?
• FluidChargeTM puts GM at the forefront of EV
technology
• FluidChargeTM can be produced without the use
of fossil fuels
• FluidChargeTM is reusable and more
environmentally friendly
• FluidChargeTM will also have a better impact on
CAFE ratings for the GM fleet

15. VRIO: Analysis
Valuable:✔ Being the only company with this technology
would be a huge differentiator and yields a greater competitive
advantage instead of working with existing battery tech.
Rare: ✔ Still in early stages of research/development in
academia and so far only viable in a lab
Costly to imitate: ✔ Quite difficult for small companies to
raise enough for research and resources to mass produce.
Organized to capture value: ✔ Breaking out R&D to a
physically separate location, then using existing dealership
network to deliver to consumers yields Competitive Advantage.