General Motors (Chevrolet India)General Motors Corporation (GM) is a multinational automobile manufacturerfounded in 1908 and headquartered in the United States. GM is the worlds largestautomaker as measured by global industry sales and has been the global sales leaderfor the last 77years. As of 2008, General Motors employs about 266,000 people aroundthe world. It manufactures its cars and trucks in 35 different countries and sells themunder the brands of Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer,Opel, Pontiac , Saab, Saturn, Vauxhall, and Wuling. As of 2008, General Motors is theninth largest publicly traded company in the world. In recent years the company hasendured significant financial turmoil, including a 38 billion dollar loss in 2007.GM needs a sense of urgency regarding revising a strategic plan that incorporates thenext generation of vehicles. In today’s global economy and highly competitive autoindustry GM has no time to procrastinate. As stated, GM has just too much at risk innot be coming an industry leader in alternative fuel technology. Fuel-economylegislation is sparking the race. This is a critical time in auto industry with manythreats, but opportunities as well. The next several years will redefine GM.
Competitor’s AnalysisThe major competitors of General Motors are domestic companies like*Maruti Suzuki* Hyundai*Ford Motor*Toyota Motor*Honda Motor.
Maruti SuzukiAs the number two auto manufacturer in total revenues Maruti Suzuki has positioned itself as an industryleader, with this come many strengths. The Maruti Suzuki umbrella covers many well-known brands such asDodge, Audi,.BMW, Mercedes Benz, and Jeep. This means Maruti Suzuki r has strong brands that arerecognizable in almostevery part of the India.Ford Motor CompanyFord Motor Company is a global company with two core businesses: Automotive and Financial Services. TheAutomotive business consists of the design, development, manufacture, sale and service of cars, trucks andservice parts. Ford has been focusing on cutting costs to increase margins more than its competitors. It hasused reverse engineering in the development of their products. Thus Ford has been an innovator in theauto industry.Honda Motor CompanyHonda motor company is not your average Japanese car manufacturer. Originally know for motorcycles,Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominantautomobile manufactures in the world. There are many strengths to Honda. Honda has a reputation forproducing high quality products from cars to motorcycles. Honda has won many awards for initial quality andcustomer satisfaction. Their automobiles are reliable and generally fuel efficient. Their research has affordedthem competitiveness in innovative products.Toyota Motor CorporationThe Toyota Motor Corporation was incorporated in 1937 and has many strengths being one of the industryleaders in the automotive industry. Toyota has three major brands underneath the company umbrella; Toyota,Lexus, and Scion. By having these three distinct brands, it lets the company reach many sectors of the globe ina choice of vehicle for customers. Toyota has traditionally also been the leader in Total Quality Managementor TQM. By using the Kaizen theory of continuous improvement, Japan caught up the U.S. auto makersduring the 1980s.
Vision StatementThe GM vision is as follows: GM’s vision is to be the world leader in transportationproducts and related services. GM will earn our customers’ enthusiasm throughcontinuous improvement driven by the integrity, teamwork, and innovation of GMpeople.The proposed new vision for GM is as follows: For GM to become the automotiveindustry leader in alternative fueled vehicles and providing superior quality productsthatglobal consumers call to mind when they think of quality and innovation.My vision for GM is to be the industry leader in innovation, and where all otherindustrycompetition strives to imitate.
Mission StatementThe current GM mission statements are as follows: Driveimprovements in market share,revenue, brands, people, responsiveness, and cost effectivenessthrough the implementation of global common metrics and bestpractice sharing.The new proposed mission statement will be as follows: GM willbecome an industry leader, not a follower. To regain lost marketshare that was lost to foreign competition, and once again be theauto industry leader in sales and market share in today’s globalmarket.
Values StatementThe auto industry just like the global economy is going through tremendous change,due to risingfuel prices, and environmental worries, such as global warming. GM must use thesethreats asopportunities, and take advantage of changing consumer buying habits. GM needs tochangeconsumer perception of the company, from a dull, poor quality, vehicles to innovative,quality, and environmentally friendly company. To do this GM must portray an imagethat states that GM values what the consumer wants and what the environment needs.Listen to what consumers are saying directly and indirectly about GM’s currentproducts,and create innovative, green, vehicles that turn consumers into customers. At the sametime provide GM stakeholders pride and financial incentives to remain with GM.
Environmental AnalysisGM and the entire auto industry are currentlychallenged with the perfect storm. The autoindustry is being hit by a weak US and globaleconomy, rising fuel prices, and social andpolitical environmental concerns and issues. Inorder to overcome these potential threat,GM should consider mass producing a range ofalternative fueled vehicles, i.e. fuel cell,electric, and hybrid.
Factors affecting GM: Chevrolet India• POLITICALLegislationo Environmento Company Carso Competitiono Taxes and Dutyo Subsidies• ECONOMIC– Excess Capacity– Economies Of Scale– Diversification– Mergers and strategic alliances• SOCIAL– Environment– Car Culture– Fashions and taste–• TECHNOLOGICAL– E-Commerce– Safety– Plant efficiency– Gizmos
SWOT Analysis Strengths 1. Large Market Share 2. Global Experience 3. Variety of Brand Names 4.GMAC Customer Financing Program 5. On Star Satellite TechnologyWeaknesses 1. Behind on Alternative Energy Movement 2. Poor Organizational Structure 3. Stagnant Profitability 4. Overly Dependent on US market 5. Overly Dependent on General Motors Acceptance Corporation (GMAC) Financing 6. Poor Credit Status
Opportunities 1. Alternative Energy Movement 2. Continuing to Expand Globally. 3. Low Interest Rates 4. Develop New Vehicle Styles and Models Threats 1. Rising Fuel Prices 2. Growth of Competitors 3. Pension Payouts. 4. Increased Health Care Costs 5. Rising Supply Costs, i.e. Steel
Major issues involved the Automotive Industry1. PoliticalLaws and government regulations have affected this industry since the 1960s.Almost all of the regulations come from consumers increasing concerns for theenvironment and the concern for safer automobiles.2. EconomicThe automobile industry has a huge impact on every country’s economy.According to various studies this industry is the major user of computer chips,textiles, aluminum, copper, steel, iron, lead, plastics, vinyl, and rubber. The studyalso showed that for every autoworker there are seven other jobs created in otherindustries. These industries include anything from the aluminums to lead to vinyl.3. Socio culturalToday’s society judges people on the type of car you drive. Society does not liketo admit to this but it is very true. Manufactures know this happens and targetstheir markets by these thoughts. Anyone who drives a nice vehicle is thought to bewealthy. No one wants to be seen driving an unattractive piece of junk because ofwhat other people will think of him or her. Consumers also just feel better whenthey are driving a nice or new if makes them feel better about themselves.
4. Technology The internet has affected just about every industry in the world and has also had ahuge impact on the automobile industry. A study was conducted by J.D. Powerand Associates in 2002 and involved more 27,000 new vehicle buyers. The studyshowed that 60% of the buyers referred to the internet before making theirpurchases and out of that 60%, 88% went to the auto websites before going andtaking a test drive. Business-to-business marketplaces have given the industrymany opportunities because of the internet, such as more efficiency and lowercost.5. Demographics For many years now, the baby boomers generation has been the main targetmarket for just about every product. As their generation is getting ready to retireand spend less money, the automakers are looking at the younger generations.Right now, the focus is starting to turn towards the baby boomers children(Generation X) who are in their mid 20’s and 30’s. According to Analysts, fiveyears from now Gen X will account for at least 30% of vehicle sales.
. Global General Motors, Ford Motor Company, Daimler Chrysler, BMW, Volkswagen,Volvo, Toyota, Mazda, and Nissan Motor Company come together to create a newtrade association created the Alliance of Automobile Manufacturers. Theorganization was to replace the American Automobile Manufactures Associationthat only consisted of American manufacturers, the goals of the associations wereto work together on public policy matters of common interest to provide credibleindustry information and data, and seek consistent global regulatory standards
Some important Facts and Figures1) GM has cut its payroll drastically, by 45.8 percent in the U.S. alone since 2000. Infact, GM is far from the largest employer in the industry. With 252,000employees worldwide, GM ranks fifth overall behind Volkswagen (373,400employees,) Renault/Nissan (316,121 employees,) Toyota (316,121 employees)and Daimler (272,382 employees). Yet GM sold more vehicles worldwide lastyear than any other automaker.2) 9.3 million people worldwide bought GM vehicles last year. That’s morevehiclesthan any other automaker in the world sold. And in the U.S., which is the world’slargest market, GM sold more vehicles than any other manufacturer in 2007, andit has sold more than any other automaker to date in 2008.In 2008, the Chevy Malibu was named North American Car of the Year, and theCadillac CTS was Motor Trend’s 2008 Car of the Year. In 2007, the Saturn Aura andChevy Silverado won North American Car and Truck of the year. Thoseawards are given and judged by automotive journalists.
Chevrolet is not new to India – tracing Chevrolet in our sub continentMaharajas, freedom fighters and the common man – the Chevrolet has ferried them all.The bowtie has been an integral part of India’s automotive landscape from the earlytwenties till today.Chevrolet came to India in 1928. An office was set up in Bombay with an assembly plantconstructed in Sewer. General Motors (GM), Chevrolet’s parent company, was the firstautomobile company to open an assembly plant in India.Production started in 1928 with the National Series AB Touring. The AB series camewith Chevrolet’s well proven and reliable 171 cubic inches, 24.7hp four-cylinder engine.It featured Chevrolet’s first four-wheel mechanical brakes and wooden wheels. In thefirst year of production, 13,903 GM cars and trucks were built at Sewer, includingproducts from other GM brands.The Chevrolet brand quickly proved trustworthy and dependable. As a result, a largeamount of Chevrolets were imported between 1918 and 1928. The Chevrolets importedduring these years mainly consisted of small four-cylinder Tourers, because theydelivered the most impressive fuel economy and were simple to run. Even the Nawab ofHyderabad – considered the richest man in the world at the time – used ChevroletTourers as official cars.In 1930, the Indian market became even more competitive as Ford introduced the popularModel A, whose all-steel body made it a great success. Chevrolet replied with arevolutionary six-cylinder engine that developed 46 horsepower. And it was this very carthat gave Chevrolet its highest sales in India in 1931.Sadly, the years 1952-53 marked the end of an era for the Indian automobile industry.The ‘socialist’ Government forced General Motors India to shut shop, along with otherforeign car companies.