Aug3 Session4 Al Hildreth: Energy Efficiency as a Business

1. ENERGY EFFICIENCY AS A BUSINESS
GM ENERGY MANAGEMENT
Al Hildreth
8/3/2017

2. GENERAL MOTORS -
SUSTAINABILITY
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Chevrolet Bolt EV gets an EPA-estimated 238 miles per charge
Supply Chain
• 21,000 businesses
• 200,000 items
• $90B spend (2/3 cost)
• 170 manufacturing locations
• 30 countries
GM Sustainability 2016

3. GM ENVIRONMENTAL COMMITMENTS
Sustainability is integrated into our business. Every facility globally
contributes to our company-wide goals.
VOC EMISSIONS
10% reduction
(kg/veh)
WATER USE
15% reduction
(m3/veh)
ENERGY USE
20% reduction
(MWH/veh)
TOTAL WASTE
40% reduction
(kg/veh)
LANDFILL FREE
150 sites total
100 manufacturing;
50 non-manufacturing
CO2 FOOTPRINT
20% reduction
(CO2e/veh)
RENEWABLE ENERGY
100% RE by 2050
BIODIVERSITY
All Manufacturing sites
with WHC certified
habitats
COMMUNITY OUTREACH
All global sites
On track to meet goals:
2010 – 2016
Energy 16%
Carbon 16%
Water 12%

4. Top GHG in Auto
 Use of products
 Supply chain
 Operations
 Logistics
WHERE’S THE CARBON IN THE AUTO LIFE CYCLE?
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*Life Cycle

5. OVERVIEW OF CARBON & WATER:
GM MANUFACTURING
 Building 10 million vehicles per year = $1 billion in energy & water
 Enough electricity to power 1 million homes
 Carbon equivalent of 172 million trees for 10 years
 Enough water for 166 billion glasses or 30 million people per year
Large energy, carbon, and water footprint requires robust management system
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6. São José dos Campos Truck,
Brazil
São José dos Campos Eng/Trans,
Brazil
São José dos Campos, Brazil
SGMW East, Liuzhou, China JV
Bay City, MI
Fort Wayne, IN
Marion, IN
Baltimore, MD
Mogi das Cruzes, Brazil
Nairobi, Kenya CKDJV
Valencia, Venezuela CKD
Moraine, OH JV
Saginaw, MI
Bedford, IN
CAMI, ONT
CAMI, ONT
Renault, Batilly, France 3P
Fairfax, KS
Fairfax, KS
Wentzville, MO
Wentzville, MO
Luton IBC, UK
Luton IBC, UK
Rüsselsheim, Germany
Rüsselsheim, Germany
Rüsselsheim, Germany
6th October City, Egypt CKDJV
Bogotá, Colombia CKD
Spring Hill, TN
Warren, MI
Hamtramck, MI
Brownstown, MI
Rosario, Argentina
Rosario, Argentina
Rosario, Argentina
Silao, Mexico
Silao, Mexico
Silao, Mexico
Gravataí, Brazil
Gravataí, Brazil
São Caetano do Sul/Stamping, Brazil
São Caetano do Sul, Brazil
São Caetano do Sul/Tooling, Brazil
SGM Jinqiao North, China JV
SGM Jinqiao, China JV
SGM Jinqiao, China JV
SGM Jinqiao South, China JV
Boryeong, South Korea JV
Kaiserslautern, Germany
Kaiserslautern, Germany
Toluca, Mexico
St. Catharines, ONT
Toledo, OH
Pontiac, MI
Eisenach, Germany
Szentgotthárd, Hungary
Togliatti, Russia JV
SGM Dong Yue, China JV
SGM Dong Yue, China JV
SGM Dong Yue North , ChinaJV
Zaragoza, Spain
Zaragoza, Spain
Defiance, OH
Bowling Green, KY
Struandale, South Africa CKD
SGMW West, Liuzhou, China JV
SGMW Liuzhou CET, China JV
Ramos Arizpe, Mexico
Ramos Arizpe, Mexico
Ramos Arizpe, Mexico
Oshawa Car, ONT
Oshawa Car, ONT
SGM Norsom I, China JV
San Luis Potosí, Mexico
San Luis Potosí, Mexico
San Luis Potosí, Mexico
Aspern, Austria
Quito, Ecuador CKDJV
Ust-Kamenogorsk, Kazakhstan 3P SKD
Tonawanda 1&5, NY
Ellesmere Port, UK
Ellesmere Port, UK
Unison, Russia SKD
SKD
SGMW Liuzhou, China JV
Gunsan, South Korea JV
Gunsan, South Korea JV
Gunsan, South Korea JV
Bupyeong/Stamping, South Korea JV
Bupyeong, South Korea JV
Bupyeong 2, South Korea JV
Bupyeong 1, South Korea JV
Bupyeong/Tooling, South Korea JV
Changwon, South Korea JV
Changwon/Stamping, South Korea JV
Changwon, South Korea JV
Changwon/Tooling, South Korea JV
Adelaide, Australia
Adelaide, Australia
Port Melbourne, Australia
Talegaon, India
Talegaon, India
Tashkent, Uzbekistan SKDJV
Asaka, Uzbekistan JV
Asaka, Uzbekistan JV
Flint, MI
Flint-, MI
Flint, MI #38
Flint 1, MI
Hanoi, Vietnam CKDJV
Lansing Delta Township, MI
Lansing Grand River, MI
Lansing Regional, MI
Spring Hill, TN
Spring Hill, TN
SGMW Qingdao, China JV
SGMW Qingdao, China JV
SGMW Qingdao, China JV
Rayong, Thailand
Rayong Car, Thailand
Rayong Truck, Thailand
CKD
SGM Norsom II, China JV
Lockport, NY
Rochester, NY
Lordstown, OH
Lordstown, OH
Kokomo, IN
Grand Rapids, MI
Gliwice, Poland
Gliwice, Poland
Halol, India CKD
Version Date: Q4’15 12-23-15
FAW Harbin, China JV
FAW Hongta, China JV
FAW Hongta, China JV
FAW Harbin, China JV
Kempston Road, South Africa SKD
JV
JV
Talegaon, India
Parma, OH
JV
Zaporozhye, Ukraine 3P CKD
Zaporozhye, Ukraine 3P
Rayong, Thailand
FAW Changchun, China JV
FAW Changchun, China JV
Orion, MI
TOTAL = 171
41
48
72
8
65
11
7
4
1
Fiat, Tofas, Turkey 3P
Norsom II, China JV
Arlington, TX
Huechuraba, Chile SKD
Tashkent, Uzbekistan JV
SGM Dong Yue South, China JV
SGMW Liudong I, China JV
SGMW Liugong, China JV
Halol, India JV
Joinville, Brazil
Sandouville, France
JV
Arlington, TX
SGMW Baujun CET, China JV
Bogota, Columbia
Rüsselsheim, Germany
Assembly
Stamping
Powertrain
5 Tool & Die Shop
Battery
GMCH
Complete Knock
Down (CKD)
Semi Knock
Down (SKD)
Joint Venture
(JV)
3rd Party (3P)
Korezm, Uzbekistan JV
Norsom III, China JV
SGM Norsom III, China JV
SGM Norsom III, China JV
Cuernavaca, Mexico 3P
Bielsko, Poland 3P
CKD
SGMW Chongqing, China JV
SGMW Chongqing, China JV
Wuhan, Hubei JV
Wuhan, Hubei JV
Wuhan, hubei JV
3P
Romulus, MI
SGMW Chongqing CET, China JV
GLOBAL GM MAP
Large number of facilities requires a common business plan system

7. GM’S GLOBAL MANUFACTURING SYSTEM
What – Goals & Objectives
How - Methods
When – Schedule and Control points
Why – Vision & Mission
Who – Responsible & Support
Where – Focus on where value is added
Goal
S
Continue Safety
Leadership
P
Engaged &
Qualified Work
Force
Q
Segment
Leaders by 2012
R
Meet Customer
Demand
C
Regain
Profitability
E
Industry Leader
in Environmental
Systems
People Involvement
1. Vision, Mission 5. Engagement
2. Health & Safety 6. Open Communication
3. Qualified People Process
4. Team Concept 7. Shop Floor Management
Standardization
8. Workplace Organization
9. Management By Takt Time
10. Standardized Work
Built-In Quality
11. Quality Standards 15. Quality Management
12. Process & Product Validation System
13. In-Process Control & Verification
14. Quality Feedback/Feedforward
Short Lead Time
16. Simple Process Flow 21. Scheduled Shipping /
17. Pull Systems Receiving
18. Lean Containerization 22. Temporary Material
19. Level Scheduling & Fixed Storage
Period Orders 23. Supply Chain
20. Controlled External Management
Transportation
Continuous Improvement
24. Business Plan Deployment 27. Andon Concept/Process
25. Problem Solving 28. Total Productive
26. Lean Design Maintenance
29. Continuous Improvement
Process
Each of the 5 GM-GMS Principles is supported by key elements.
There are 29 GM-GMS Elements.
GLOBAL
MANUFACTURING SYSTEM
In GMS, E-Metric or
Environmental /
Energy is managed
along with our
Business Plan in
“Continuous
Improvement”
Plan, Do, Check, Act aligns with
ENERGY STAR® guidelines
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Key to success: integrate water & carbon into business plan

8. TOOLS FOR ENERGY/CARBON/WATER
MANAGEMENT
GM-2100 – Imports hourly meter
data for online scorecards.
Energy OnStar – imports hourly
production and energy meter data
and emails daily status to plants
Share best practices with your supply chain
Plan to implement projects
• Dedicated fund (GM $20M)
• 2 year average payback
• Utility incentives
• Energy Performance
Contracting (EPC)
• Projects
• LED with controls
• VFD on motors
• Heat recovery
• Building management
systems upgrades
• Building envelope

9.  Guiding principles
enhance sustainability
performance
 Localization manages
• Risk
• Cost
• Carbon
emissions
 Measure
 Actions – cost and
carbon reduction
SUPPLY CHAIN SUSTAINABILITY
MANAGEMENT AT GM
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“Build where we sell, buy where we build.”
AIAG Corporate Responsibility

10. GM’S GHG IN AUTO PARTS LIFECYCLE
Reduction requires OEM / supplier collaboration
“52% GHG in tiers 1-2 and >10 times OEM”
1 0
Iron and steel mills and ferroalloy manufacturing 21%
Electric power generation transmission and distribution 18%
Steel product manufacturing from purchased steel 15%
Plastics material and resin manufacturing 5%
Other basic organic chemical manufacturing 4%
Motor vehicle parts manufacturing 3%
Natural gas distribution 3%
GHG Pareto by Industry

11. BENEFITS OF PARTNERSHIPS:
CARBON REDUCTION
• AIAG
• Engagement with supply chain
• ENERGY STAR®
• Free partnership
• Benchmarking
• Networking
• CDP Supply Chain
• Webinars
• Action Exchange
• SmartWay®
• Carrier reporting
• Best practice sharing

12. alfred.j.hildreth@gm.com
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