General Motors (GM) is the world's largest automaker. It manufactures vehicles under brands such as Chevrolet, Cadillac, GMC and Opel. GM entered India in 1928 and was the first automaker to set up an assembly plant. It produced early Chevrolet models that were popular among Maharajas and other elite. However, GM was forced to shut its India operations in 1953 when the government implemented socialist policies. The document discusses GM's global operations and history in India. It also analyzes the competitive landscape and provides recommendations to strengthen GM's position.

5. General Motors (Chevrolet India)
General Motors Corporation (GM) is a multinational automobile manufacturer
founded in 1908 and headquartered in the United States. GM is the world's largest
automaker as measured by global industry sales and has been the global sales leader
for the last 77years. As of 2008, General Motors employs about 266,000 people around
the world. It manufactures its cars and trucks in 35 different countries and sells them
under the brands of Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer,
Opel, Pontiac , Saab, Saturn, Vauxhall, and Wuling. As of 2008, General Motors is the
ninth largest publicly traded company in the world. In recent years the company has
endured significant financial turmoil, including a 38 billion dollar loss in 2007.
GM needs a sense of urgency regarding revising a strategic plan that incorporates the
next generation of vehicles. In today’s global economy and highly competitive auto
industry GM has no time to procrastinate. As stated, GM has just too much at risk in
not be coming an industry leader in alternative fuel technology. Fuel-economy
legislation is sparking the race. This is a critical time in auto industry with many
threats, but opportunities as well. The next several years will redefine GM.

8. Competitor’s Analysis
The major competitors of General Motors are domestic companies like
*Maruti Suzuki
* Hyundai
*Ford Motor
*Toyota Motor
*Honda Motor.

9. Maruti Suzuki
As the number two auto manufacturer in total revenues Maruti Suzuki has positioned itself as an industry
leader, with this come many strengths. The Maruti Suzuki umbrella covers many well-known brands such as
Dodge, Audi,.BMW, Mercedes Benz, and Jeep. This means Maruti Suzuki r has strong brands that are
recognizable in almost
every part of the India.
Ford Motor Company
Ford Motor Company is a global company with two core businesses: Automotive and Financial Services. The
Automotive business consists of the design, development, manufacture, sale and service of cars, trucks and
service parts. Ford has been focusing on cutting costs to increase margins more than its competitors. It has
used reverse engineering in the development of their products. Thus Ford has been an innovator in the
auto industry.
Honda Motor Company
Honda 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 dominant
automobile manufactures in the world. There are many strengths to Honda. Honda has a reputation for
producing high quality products from cars to motorcycles. Honda has won many awards for initial quality and
customer satisfaction. Their automobiles are reliable and generally fuel efficient. Their research has afforded
them competitiveness in innovative products.
Toyota Motor Corporation
The Toyota Motor Corporation was incorporated in 1937 and has many strengths being one of the industry
leaders 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 in
a choice of vehicle for customers. Toyota has traditionally also been the leader in Total Quality Management
or TQM. By using the Kaizen theory of continuous improvement, Japan caught up the U.S. auto makers
during the 1980s.

10. Vision Statement
The GM vision is as follows: GM’s vision is to be the world leader in transportation
products and related services. GM will earn our customers’ enthusiasm through
continuous improvement driven by the integrity, teamwork, and innovation of GM
people.
The proposed new vision for GM is as follows: For GM to become the automotive
industry leader in alternative fueled vehicles and providing superior quality products
that
global 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 other
industry
competition strives to imitate.

11. Mission Statement
The current GM mission statements are as follows: Drive
improvements in market share,
revenue, brands, people, responsiveness, and cost effectiveness
through the implementation of global common metrics and best
practice sharing.
The new proposed mission statement will be as follows: GM will
become an industry leader, not a follower. To regain lost market
share that was lost to foreign competition, and once again be the
auto industry leader in sales and market share in today’s global
market.

12. Values Statement
The auto industry just like the global economy is going through tremendous change,
due to rising
fuel prices, and environmental worries, such as global warming. GM must use these
threats as
opportunities, and take advantage of changing consumer buying habits. GM needs to
change
consumer perception of the company, from a dull, poor quality, vehicles to innovative,
quality, and environmentally friendly company. To do this GM must portray an image
that 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 current
products,
and create innovative, green, vehicles that turn consumers into customers. At the same
time provide GM stakeholders pride and financial incentives to remain with GM.

13. Environmental Analysis
GM and the entire auto industry are currently
challenged with the perfect storm. The auto
industry is being hit by a weak US and global
economy, rising fuel prices, and social and
political environmental concerns and issues. In
order to overcome these potential threat,
GM should consider mass producing a range of
alternative fueled vehicles, i.e. fuel cell,
electric, and hybrid.

14. CAPTIVA

17. Some important Facts

18. HANDLING CUSTOMER

19. Factors affecting GM: Chevrolet India
• POLITICAL
Legislation
o Environment
o Company Cars
o Competition
o Taxes and Duty
o 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

20. SWOT Analysis
Strengths
1. Large Market Share
2. Global Experience
3. Variety of Brand Names
4.GMAC Customer Financing Program
5. On Star Satellite Technology
Weaknesses
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

21. 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

22. Major issues involved the Automotive Industry
1. Political
Laws and government regulations have affected this industry since the 1960s.
Almost all of the regulations come from consumers increasing concerns for the
environment and the concern for safer automobiles.
2. Economic
The 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 study
also showed that for every autoworker there are seven other jobs created in other
industries. These industries include anything from the aluminums to lead to vinyl.
3. Socio cultural
Today’s society judges people on the type of car you drive. Society does not like
to admit to this but it is very true. Manufactures know this happens and targets
their markets by these thoughts. Anyone who drives a nice vehicle is thought to be
wealthy. No one wants to be seen driving an unattractive piece of junk because of
what other people will think of him or her. Consumers also just feel better when
they are driving a nice or new if makes them feel better about themselves.

23. 4. Technology
The internet has affected just about every industry in the world and has also had a
huge impact on the automobile industry. A study was conducted by J.D. Power
and Associates in 2002 and involved more 27,000 new vehicle buyers. The study
showed that 60% of the buyers referred to the internet before making their
purchases and out of that 60%, 88% went to the auto websites before going and
taking a test drive. Business-to-business marketplaces have given the industry
many opportunities because of the internet, such as more efficiency and lower
cost.
5. Demographics
For many years now, the baby boomers generation has been the main target
market for just about every product. As their generation is getting ready to retire
and 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, five
years from now Gen X will account for at least 30% of vehicle sales.

24. . Global
General Motors, Ford Motor Company, Daimler Chrysler, BMW, Volkswagen,
Volvo, Toyota, Mazda, and Nissan Motor Company come together to create a new
trade association created the Alliance of Automobile Manufacturers. The
organization was to replace the American Automobile Manufactures Association
that only consisted of American manufacturers, the goals of the associations were
to work together on public policy matters of common interest to provide credible
industry information and data, and seek consistent global regulatory standards

25. Some important Facts and Figures
1) GM has cut its payroll drastically, by 45.8 percent in the U.S. alone since 2000. In
fact, GM is far from the largest employer in the industry. With 252,000
employees worldwide, GM ranks fifth overall behind Volkswagen (373,400
employees,) Renault/Nissan (316,121 employees,) Toyota (316,121 employees)
and Daimler (272,382 employees). Yet GM sold more vehicles worldwide last
year than any other automaker.
2) 9.3 million people worldwide bought GM vehicles last year. That’s more
vehicles
than any other automaker in the world sold. And in the U.S., which is the world’s
largest market, GM sold more vehicles than any other manufacturer in 2007, and
it 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 the
Cadillac CTS was Motor Trend’s 2008 Car of the Year. In 2007, the Saturn Aura and
Chevy Silverado won North American Car and Truck of the year. Those
awards are given and judged by automotive journalists.

26. Chevrolet is not new to India – tracing Chevrolet in our sub continent
Maharajas, 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 early
twenties till today.
Chevrolet came to India in 1928. An office was set up in Bombay with an assembly plant
constructed in Sewer. General Motors (GM), Chevrolet’s parent company, was the first
automobile company to open an assembly plant in India.
Production started in 1928 with the National Series AB Touring. The AB series came
with 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 the
first year of production, 13,903 GM cars and trucks were built at Sewer, including
products from other GM brands.
The Chevrolet brand quickly proved trustworthy and dependable. As a result, a large
amount of Chevrolets were imported between 1918 and 1928. The Chevrolets imported
during these years mainly consisted of small four-cylinder Tourers, because they
delivered the most impressive fuel economy and were simple to run. Even the Nawab of
Hyderabad – considered the richest man in the world at the time – used Chevrolet
Tourers as official cars.
In 1930, the Indian market became even more competitive as Ford introduced the popular
Model A, whose all-steel body made it a great success. Chevrolet replied with a
revolutionary six-cylinder engine that developed 46 horsepower. And it was this very car
that 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 other
foreign car companies.