Marketing Project: GM VoltKey issues, Potential themes, and Questions that can be explored...Brief Company Profile & HistoryHistory:General Motors (GM) was founded on September 16, 1908 in Flint, Michigan, as a holding company for Buick, then controlled by WilliamC. Durant, and Oldsmobile was acquired later that year. The next year, Durant brought in Cadillac, Oakland (later known as Pontiac) andseveral others like Elmore. In 1909, General Motors made major acquisitions of Reliance Motor Truck Company of Owosso, Michigan,and the Rapid Motor Vehicle Company of Pontiac, Michigan, the forerunner of the GMC Truck. A few years later after gaining control ofGeneral Motors again, Durant would start the Chevrolet Motor car company and through this he secretly purchased a controlling interest inGeneral Motors. Durant took back control of the company after one of the most dramatic proxy wars in American business history. Shortlyafter, he again lost control for good after the new vehicle market collapsed. Alfred Sloan was picked to take charge of the corporation andled it to its post war global dominance. This extraordinary growth of GM would last through the late 70s and into the early 80s.ProfileGeneral Motors Corporation and its subsidiaries take on the development, production, and marketing of cars, trucks, and related partsworldwide. It offers small, midsize, sports, and luxury cars; and pickup, van, utilities, and medium duty trucks. The company sells itsproducts under the Chevrolet, Buick, Saab, GMC, Pontiac, Cadillac, Hummer, and Saturn, Opel, Vauxhall, Isuzu, Holden, and Daewoobrand names in Canada, Europe, Latin America, and Asia Pacific. General Motors also provides a range of financial services, includingconsumer vehicle financing, automotive dealership and other commercial financing, residential mortgage services, automobile servicecontracts, personal automobile insurance coverage, and commercial insurance coverage under the name of General Motors AcceptanceCorporation (GMAC). In addition, the company offers after sale services, such as maintenance, light repairs, collision repairs, and vehicleaccessories, a way to enhance customer relationship. General Motors markets its products through distributors and dealers, as well asthrough retail dealers. “As of December 31, 2007, the company operated 6,776 vehicle dealers in the United States, 729 in Canada, and 330in Mexico, as well as approximately 14,052 distribution outlets in the rest of the world. It has collaboration with PTT Public Co., Ltd. forthe development of alternative fuels for vehicles.” (yahoo.com)Product and Service offeringsRising Fuel Costs and a concern over the environment have led automakers to experiment with alternative fuel cars. One of the mostpromising alternative-fuel technologies is the hybrid engine. A hybrid technology combines a gasoline powered engine with a batterypowered electric motor. The battery is designed to recharge whenever the car brakes or more conventionally by a generator supplied bygasoline engine. Most Electric Vehicles are non pluginable and use less petroleum for power.The GM VoltUnlike traditional electric cars, Chevrolet Volt has a revolutionary propulsion system that takes you beyond the power of the battery. It willconsist of a lithium-ion battery with a variety of range-extending onboard power sources, including gas and, in some vehicles, E85 ethanolto recharge the battery while you drive beyond the 40-mile battery range. Which implies that for someone who drives less than 40 miles aday, Chevy Volt will use zero gasoline and produce zero emissions, the battery charges when the car brakes. The 40mile limit is beneficialbecause statistics show that the daily commute of 75% of Americans averages around 33 miles (53 km). And when the Chevrolet Voltcomes to being plugged in, Chevy Volt will be designed to use a common household plug and the charge time will be for around 6hoursAfter 40 miles (64 km), the range of the Volt will need to be extended through the use of a small 4-cyl internal combustion engine whichdrives a 53 kW generator. This arrangement creates a sustaining charge current to the HV batteries and permits them to continue poweringthe 111 kW electric drive motor. This effectively extends the Volts potential range to as much as 640 miles (1,030 km) on a single tank offuel. And which could be potentially extended for longer trips through conventional refueling.
Marketing Specific issues-Product & Service StrategyAs a response to the market and every change in the industry, GM created a strategy to gain market share with a new compact platform onwhich most of the hybrids will be manufactured called the E-Flex. General Motors had previously produced an electric car , The EV1E-Flex is a future General Motors automobile platform slated to be released in late 2010. E-Flex initially uses a plug-in capable, battery-dominant series hybrid architecture. The E-Flex vehicles are all electrically-driven, feature common drive train components, and will beable to create electricity on board, either through a generator set or a fuel cell. Regenerative braking will also contribute to the on-boardelectricity generation. (“E” stands for electric drive and “Flex” for the different sources of electricity.)-Distribution Channels & RelationshipsGM executives account that battery technology will have a great impact in determining the success of the car and to help spur batteryresearch, GM selected two companies to provide advanced lithium-ion battery packs: Compact Power, which uses manganese oxide, basedcells made by its parent company, LG Chemical, and Continental Automotive Systems, which uses Nan phosphate based cylindrical cellsmade by A123Systems. However, on August 9, 2007, GM established a more close-knit relationship with A123Systems so that the twocompanies could co-develop a Volt-specific battery cell. This cell was later unveiled at the EVS23 industry convention in Anaheim, CA.Work with CPI has continued at a rapid pace, and in late 2007 CPI delivered two fully-functional prototype battery packs to GMs testingfacilities. On January 31, 2008, A123 and Continental delivered their first prototype to GMs European test facilities. GM will likely useboth suppliers for the Volt.GM expects ten years of life out of the batteries. As of early 2008, they had started extensive battery testing andplanned to have 10-year battery results in two years. Batteries were placed in Chevrolet Malibus for further real-world testing. The lithium-ion battery is preferred to the Nickel hydride batteries used in other hybrids because it’s light weight and higher power and efficiency.DistributionGeneral Motors has a relationship with over 6000 dealers and approximately 8000 technicians employed in the United States. The Volt hasbeen branded as a Chevrolet to take full advantage of the enormity of the existing distribution channel and the solid support that is alreadyestablished. Considering the distribution of the volt to the dealers, the dealers have a legal sales binding agreement with General Motors.The vehicles can be sold only through the dealer outlets; it is the only method of selling this product. General Motors wants all of itsemployees and dealers to be equipped with sound knowledge of the product and they plan to invest heavily in sales and service education.General Motor also plans to provide specialized training to all the dealers since they believe the dealers must have a comprehensiveknowledge base about the product in order to completely understand it and hence be capable of handling technical issues and enquiries.They want to make sure that everyone involved in the distribution channel is completely prepared for the product with all the requiredsupport systems and assistance when the product is finally launched.To spread awareness about the product, GM intends to provide sufficient technical information about the product such as the differentenergy source to be used on the Volt to the lead users, the law enforcement and the fire department personnel.With respect to Volt’s customers, as of today, roughly over 20,000 people have expressed their interest in purchasing a Chevy volt bysigning up in the Virtual waiting list on the GM website. Customers can communicate with the dealers over the internet, but the sale has tooccur only at the dealership. In order to address the issue of the growing waiting list and maintaining a good relationship with itscustomers, GM is working with an ardent Volt fan to upgrade and make the waiting list a dynamic real time one that would be capable ofreflecting the number of customers and the distribution of population. GM considers its relationship with its customers most valuable andhence plans to make enough provisions to ensure that all its customers who ever dreamt of owning a Volt get one. GM also opened a blogsite that constantly updates the fans of the Chevrolet Volt with the development and important news pertaining the company and industry atlarge.Furthermore, GM has a distribution plan of rolling out the car gradually rather than flooding the market place to get a huge share of themarket. Their strategy behind this plan is to ensure that all the components and safety measures are in place before the car is rolled out. TheChevy volt will also not be available for sale in all cities and at all Chevrolet dealerships as that would require setting up of service stationsand more training. GM plans to begin roll out in about 10 major cities to start with and then gradually expand their presence in other citiesand in the market.
-Branding, customer perception and behaviorAs a plan to market and sell the Volt on a global scale, GM has declared that the Volt will be sold in the United Kingdom as the VauxhallElectra and in other parts of Europe as an Opel brand. This is due to presence (lack of) of Chevrolet in Europe. Whereas Vauxhall has amajor presence in the United Kingdom and Opel is GM’s main brand in Europe. Opel is a known German automotive company andPerception:General Motors has always received a bad rap in terms of perception from the customers. Customers perceive GM to be manufacturers of gas guzzling SportUtility Vehicles so the production of a hybrid with at least 100 miles per gallon will create a new, better and much needed perception of General Motors.GM intends to promote their new green technology by creating primary demand since they are one of the first to attempt to create a near electric vehicle.They also intend to market it is a cheaper mover around than the otherwise expensive gas fill ups for conventional cars.http://www.treehugger.com/files/2007/01/the_buzz_around.phphttp://www.bloomberg.com/apps/news?pid=20601103&sid=a2GgcMQbsIcU&refer=ushttp://www.linkspromotions.com Link Building | Link Building Services-Market Segments, product/service niches and revenue models employed-Product PositioningGM has decided on a new descriptive terminology distinct from calling it a hybrid. They are calling the Volt an E-REV, for "extended-range electric vehicle". This is in part justified since there is no mechanical linkage between the petrol engine and the wheels. The designis conceptually similar to a modern electromotive locomotive, with a generator, an electric motor, regenerative braking, with the addition ofa storage battery. This underlines its crucial point of separation from other hybrids: It operates entirely as an electric car for its first 40miles after a full charge. It burns no gasoline during those miles, drawing energy from a 400-pound lithium-ion battery pack containing 16kilowatt-hours (kWh). Current from that pack powers a 150-hp electric motor that drives the Volt’s front wheels.Other (related) issues of interest.........but not necessary to includeGlobal vision and executionCompetitive landscape:Although still a very young industry there is a fair size of competition for the Chevrolet Volt and some of the competition is still in itsdevelopmental stage, while some other hybrid vehicles are in market.Toyota Prius: One of the pioneers to the market launched in 1997, it is priced at $ 22,000 and it uses a sealed Nickel Metal Hydridebattery. It seats for five . It is a front wheel drive accelerates from 0 to 60 miles per hour in 10.5 seconds. It is positioned as anevironmental vehicle for commuters.Honda Insight: Originally launched in 1999 the second generation is due in 2009. once in market it will cost $19,000 and it will use anickel Hydride battery. It’s fuel efficiency will be about 67 miles per gallon . It also will be a 5 door hatchback that will be able to seat fiveand will also be a commuter vehicle.Nissan Cube: Still in developmental stages, the third generation Cube will be an electric vehicle and will be produced in 2009. The cube’sprice will range from $14,500-$17,000 and just as the Volt , will use lithium-ion battery. The cube intially lauched and marketed for thejust the japanese market , is expanding on a global level and use the new generation electric vehicle to capture market share in europe andamerica.Mini E: Though still a concept in its early developmental stages, The Mini E is anticipated to cost around $ 24,000 and will use a lithium-ion battery. It will be relatively more powerful than the Volt (150kW). Its top speed will be 95 miles per hour and its acceleration from 0 to60 miles per hour will be 8.5 seconds. And it seats two.Tesla Motors Model S :
Dodge EVrole of alliancesMajor growth areasLeadership and managerial competencies at the companydegree of innovativenessindustry profile and key competitorsfinancial performance, growth and future prospectskey sources of disruptive innovation that may impact future prospectsGM Vision and StrategyFrom http://www.gm.com/corporate/responsibility/reports/01/sustainability_and_gm/vision_strategy/index.htmlTechnology, Innovation and PartnershipGeneral Motors Vision Our vision is to be the world leader in transportation products and related services. In order to achieve this vision, we recognize that many issues must be addressed and many goals attained. It is imperative that economic, environmental and social objectives be integrated into our daily business objectives and future planning activities so that we can become a more sustainable company.Our future success is dependent, in part, on technology, innovation and partnerships. It is essential that we manage the economic,environmental and social issues we face in an integrated manner with these factors in mind. • Technology is the most efficient way we can address many current issues, such as fuel efficiency and climate change. It is through our products that most of the impacts arise and through which many of the solutions can be reached. Our strategy is to accelerate the development and deployment of new technology while at the same time improving existing technology. • Innovation is not a new priority for GM. In our increasingly competitive global industry, marked by excess capacity and a growing number of strong global competitors, innovation is critical to our future success. Innovation provides us with the tools needed to develop new ways of doing things, such as new concepts of mobility, as well as new ways of working, both as a company and with others. • Partnerships with stakeholders and others are also an important part of doing business. We recognize that we must continue our long history of building strong partnerships with our employees, industries, governments, markets, communities, and others in order to be responsive to the needs and concerns of our various stakeholders. These partnerships are needed in order to create a sustainable future.Technology has been a key feature of GMs success — right from the start. We are leaders in introducing new technology to the mass market— from early innovations such as the self-starter, electric windshield wiper, shatter-proof safety glass, electric rear turn signals, fully automatictransmissions and sealed beam headlights, to more recent innovations, including the catalytic converter, air bags and the EV1 electric car.
We will be focusing our efforts on improving fuel economy and reducing carbon dioxide emissions, while also reducing exhaust emissions. In the near-term, this will be achieved through improvement of the internal combustion engine with technologies such as the Saab Variable Compression Engine and Displacement on Demand; providing more vehicles that can run on alternative fuels — such as Vauxhalls range of DualFuel LPG/gasoline vehicles that have achieved an 80% OEM market share in the U.K.; and introducing hybrid vehicles which offer environmental benefits for larger commercial vehicles as well as for cars. Our strategy is to introduce these technologies where they can provide the maximum benefit. In the longer term, we believe the best way to reduce vehicle emissions is through fuel-cell technology, initially powered by fossil fuels and, as the infrastructure develops, powered by hydrogen, which will eliminate exhaust emissions. We will need to continue with the fast pace of innovation in this field and also work closely with governments and other organizations to ensure that the benefits of hydrogen are realized as soon as possible.Click on image for more on fuel celltechnology Emissions and fuel efficiency are just two of the areas where we will be using technology to improve our products. New models will make the most of information technology. The OnStarsystem, a GM first, is a unique blend of cutting-edge technology and attentive personal service that provides an unparalleled level of safety,security, and information. We will continue to introduce other features that improve safety and provide added functionality. This does, however,present us with a challenge. Additional technology means additional weight, which has a negative impact on fuel efficiency. Customersatisfaction is vital to our continued success and we must rise to the challenge of providing additional features and safety while at the sametime making strides in improving fuel economy and reducing emissions.Our strengths lie in providing innovative technology as outlined above, but we can also play a part in developing a societal vision — one thatconsiders the full impacts of mobility. Our partnership with the World Business Council for Sustainable Development (WBCSD) and others onthe Sustainable Mobility project has provided a renewed focus on these wider issues and their implications for the automobile industry. We willcontinue to work towards a common vision and look for new opportunities to work with others in this area.Innovation is not limited to our products. Innovative production processes are also important in reducing the environmental impact of ourplants. We are concentrating on resource efficiency, doing more with less. Instead of "waste," we talk of "resources", and we make every effortto use them sparingly and reuse them whenever possible. This focus has eliminated the use of many materials and has resulted in innovativenew uses for waste. For example, we have reduced non-recycled non-product output (all material not incorporated into the finished product)by 42% in our North American operations over the past three years. Our goal is to find new solutions and make the most use of our globalreach through ensuring that best practices are shared and implemented throughout all our plants.We will also be innovative and progressive in the way we work with our people. We have a strong set of core values that are laid out in ourWinning with Integrity guidelines that guide employee conduct and we support the Global Sullivan Principles.A key strength of GM is the diversity of those whom we are involved with around the world. We want to continue to make the most of thatdiversity. We have developed a strong set of policies and practices that are designed to enable each and every person to contribute fully,whether as an employee, supplier, dealer or a part of our local community. Many diversity initiatives are already in place and we intend to takemore steps in the coming years.The safety of our people is of paramount concern and we have made significant advances in reducing the number of accidents and thenumber of injuries from accidents. We will continue to set ambitious targets to ensure that this level of achievement continues.Integrating sustainability into our business strategy and day-to-day decisions is an ongoing process at GM. New functions such as the GMglobal Energy and Environmental Strategy Board (EESB) are leading this integration. The EESB and the Energy and Environmental StrategyCore Team, a team comprised of subject matter experts that support the EESB, recently participated in sustainability training. In the nearfuture, this training will be available to increasing numbers of our employees through General Motors University. An increased awareness ofthe concept and practice of sustainability, as it applies to our vision and values, will help ensure further integration of sustainability thinking into
the core of our business. The WBCSD Sustainability Through the Market project also provides us with opportunities for integratingsustainability into our business.As we move forward, we must also continue to develop strong partnerships with our stakeholders to help accelerate our progress. The issueswe face are complex and the solutions can only be found and achieved if business, government and society work together. Our relationshipswith organizations such as the WBCSD and the Coalition for Environmentally Responsible Economies (CERES), as well as the manymembers they represent, have been important contributors to our progress to date. Key to working with others is our commitment totransparency and to providing our stakeholders with evidence of our progress so that they can evaluate our performance. This report andother initiatives, such as our GMability.com web site, help us achieve that transparency. As we move forward, we will continue to build on ourrelationships with our stakeholders, and seek to further understand their perspectives and to build these into our decision-making processesKey IssueSustainability in GMs BusinessAt GM, sustainability represents a management framework that drives us toseek continuous improvement in our operations and products in a way thatintegrates economic, environmental and social objectives into both our dailybusiness decisions and future planning activities. We recognize that ourearth is fragile and as a leading global company we have a responsibility tointegrate sustainable development into our business priorities. This meanscombining our bottom line profitability with our environmental and socialresponsibilities.One way in which we are integrating sustainability into our business isthrough the implementation of the GM global Energy and EnvironmentalStrategy. A global Energy and Environment Strategy Board (EESB) has In August, GM unveiled the worlds first gasoline fuel processorbeen established to lead GMs development and implementation of this for fuel cell propulsion at the annual automotive managementstrategy. The EESB and the Energy and Environmental Strategy Core conference in Traverse City, Mich. The Gen III processor,Team, a team comprised of subject matter experts that support the EESB, packaged in a Chevrolet S-10 pickup, reforms clean gasolinerecently participated in sustainability training. In the near future, this training onboard, extracting a stream of hydrogen to send to the fuelwill be available to increasing numbers of our employees through General cell stack.Motors University. An increased awareness of the concept and practice ofsustainability as it applies to our vision and values will help ensure that the goals of the Energy and Environmental Strategy are increasinglyintegrated into our products, plants and partnerships.Corporate Social ResponsibilityCorporate social responsibility (CSR) is generally considered conducting business activities in a responsible manner. At General Motors, CSRis the attempt to balance environmental and social aspects of our business with the economic aspects of our business.CSR is largely driven by societal expectations and intersects a myriad of corporate issues with broad implications to profitability. We maintaina cross-functional team representing multiple disciplines to forecast and identify global CSR issues and assess impact to the corporation.Seven CSR focus areas frame current issues and anticipated issues: human rights, worker rights, environment, business practices/ethics,government relations, community relations/philanthropy and supplier relations. Our commitment to CSR is demonstrated in activities rangingfrom education and technology to health care and philanthropy. We continue to increase the rate of CSR integration into our global businessoperations, thus supporting our core values. Our six core values are customer enthusiasm, continuous improvement, integrity, teamwork,innovation and individual respect and responsibility.
We have developed and published Winning with Integrity: Our Values and Guidelines for Employee Conduct, which is based on our corevalues and demonstrates our commitment to integrity They include personal integrity, integrity in the workplace, integrity in the marketplace,and integrity in society and its communities. We also support the Global Sullivan Principles, as consistent with our core values and WinningWith Integrity. The Global Sullivan Principles, which were developed by the late Reverend Leon H. Sullivan and have their roots in the 1977Sullivan Principles for South Africa, provide guidance to companies across the globe regarding core issues such as human rights, workerrights, the environment, community relations, supplier relations and fair competition.Future Fuels and Propulsion SystemsWe are considering a broad range of technology options to meet future transportation needs, low emissions requirements and fuel efficiencygoals. These technologies include lean burn gasoline engines, advanced diesels, hybrids and fuel cells. All of these technologies requirecleaner fuels in order to attain the maximum emission reduction potential of catalyst based emission controls. The World-Wide Fuel Charter,issued by the worlds auto manufacturers, has encouraged the U.S. Environmental Protection Agency and the European Union to includeclean fuel requirements in the latest round of vehicle emission requirements. Essentially, sulfur-free gasoline and diesel fuel will be needed tosupport lean burn, advanced diesels and fuel cells. While these fuels will be available in Europe in the 2005 to 2010 time frame, the U.S. musttake steps to reduce gasoline sulfur. Gasoline distillation properties must also be controlled in order to achieve low emissions and addressengine deposits. U.S. diesel fuel cetane must also be increased in order to address engine noise and smoke.Sustainable MobilityMobility is essential to life. There is a deep human need for autonomous, convenient, and efficient movement that shrinks distance and savestime. Mobility is also essential to modern, competitive economies, which require the timely and effective flow of goods and services. Existingmeans of transportation have enabled a significant percentage of the worlds people and businesses to meet their mobility needs with relativeease at affordable prices. However, the successful satisfaction of these needs has led to growing concerns about transportations impacts onthe environment, on the publics health and safety, and on the quality and patterns of life, in both developed and developing nations.In early 2000, we proposed to the World Business Council for Sustainable Development a project to look ahead thirty years to envision howthe worlds mobility needs could be satisfied on a sustainable basis. Eleven companies, including six of the worlds ten largest, are nowinvolved in this three-year effort, which is co-chaired by GM, Shell and Toyota. The projects first report, Mobility 2001, assesses thesustainability of current modes of transportation, worldwide. The companies involved will respond with Mobility 2030, due by mid-2003, whichwill include visions of sustainable mobility systems of the future and how to get there. You can follow the progress of this project atwww.wbcsdmobility.org.Aging Populations and Emerging PoliciesWe have long-established safety research and engineering programs for aging drivers. These programs have been expanded greatly as aresult of emerging data. GM originally was involved in bio-mechanical research to define different injury patterns in older drivers andpedestrians, to modify the Hybrid III and Side-impact dummy injury criteria to increase engineering protection. This work continues, but newemphasis is being added. Research medical data, globally, is showing that persons are living much longer, remaining vital and interested inuse of freedom of mobility in personal transportation, and that the trend is actually increasing. Our programs include design features that bothcomprehend and extend communication needs for older drivers with needs and wishes for instrument panel, vehicle operation, andcommunications characteristics optimized for safety and comfort. In addition, our employee population is aging, and public and corporatepolicies that relate to an older work-force being increasingly capable of working longer with increased value, balanced with a desire by manyfor early retirement, second or third careers, and broad societal demographic shifts require new and innovative policy development. As withthe younger population entering the consumer and the employee workforce, we approach this issue as a strength in diversity, and welcomethe challenge to learn more from all these programs.DiversityThe global context for diversity includes two areas — multiculturalism (country-to-country) and a U.S.-based concept of diversity that goesbeyond cultural/ethnic differences to include diversity based on experiences, style, gender, level, age, race, religion, etc.
Our position is that our employees ability to handle these differences and work successfully together is critical, whether the origin of thediversity is language, national origin, cultural differences or differences based on other characteristics. Our vision is "An environment thatnaturally enables General Motors employees, suppliers, dealers and communities to fully contribute in the pursuit of total customerenthusiasm." Our values address the issue most directly by aligning with one of our core values: Individual Respect and Responsibility.We regularly provide our employees with information and resources to assist them in adapting to different cultures. Our challenge is toincrease this communication effort and our resources that are devoted to broader diversity issues. It is a significant challenge. Key initiativesinclude work with Employee Affinity Groups and developing resources that will reach as many employees as possible, including a diversitywebsite, diversity voice-mail "learning moments," library resources, mobile constituency exhibits, and publicity materials (posters, brochures,etc.) All materials reiterate the importance of individual behavior in creating an inclusive environment for all that interface with GM. Futurepriorities include broad implementation of initiatives that internal research indicates make an impact on a corporate culture predicated oninclusion.Global Climate ChangeThe challenge confronting General Motors is to develop a broad portfolio of advanced technology vehicles that will address concerns aboutclimate change while continuing to meet consumer demands for performance, safety, convenience, and affordability. We believe thathydrogen fuel-cell vehicles that produce no emissions are the long-term solution to climate change in the transportation industry, thoughsignificant technical, infrastructure, and cost challenges must be overcome. We also envision a period of transition characterized by continuingimprovements in conventional vehicles, modern diesel technology, and the introduction of a variety of hybrid vehicles for consumer andcommercial vehicle markets.Climate change is a global issue affecting General Motors operations around the world. Government policies and actions to reduce emissionsof greenhouse gases here and abroad could have significant impacts on the cost, performance, and demand for our products as well asimpact our manufacturing operations. National policies to address climate change could encompass rising energy costs and higher gasolineprices in particular; requirements for greater vehicle fuel economy; vehicle taxes; and restrictions on personal mobility.We have long maintained that there is enough cause for concern to take appropriate actions to reduce global greenhouse gas emissions. Webelieve that the development of new, cost-effective energy technologies is the most effective response to concerns about climate change. Weoppose binding emissions targets and timetables, and command and control regulations such as CAFE. We believe that efforts to addressclimate change must include key developing countries, and must utilize market-based mechanisms to reduce the cost of mitigatinggreenhouse gas emissions.Sustainability through the MarketGeneral Motors was a member of the World Business Council for Sustainable Development (WBCSD) working group on SustainabilityThrough the Market. The goal of this project was to take a more holistic approach to sustainable production and consumption, by promoting abetter understanding of the market and how it functions as a system rather than by focusing on isolated elements of it.This project identified seven keys to achieving sustainability through the market. We support these key concepts as they help us more fullyintegrate sustainability into our business plans. The key concepts, and examples of their integration into our business, include:
Key 1: Innovate — Novel technical and social resources; new ways toimprove lives while boosting business.A fleet of hybrid buses using the Allison Hybrid Drive System is being used inseveral major U.S. cities. If the Allison Hybrid System powered the13,000transit buses in the nine largest U.S. cities 40 million gallons of fuel would besaved per year, equivalent to the fuel savings from 500,000 small car hybrids.Key 2: Practice Eco-efficiency — Economic benefit and environmentalperformance Dave Piper, Director of Engineering,We are proving that whats good for the environment can also be good for the Allison Transmission; Mike Ward, Vicebottom line with an innovative and ambitious program that has reduced the Chairman, Orange County Transportationcompanys solid waste by 30% and is expected to save the corporation $15 Authority (inside bus); and Dennismillion a year. The program eliminates waste before it happens and provides Minano, GM VP and Chief Environmentalfinancial incentives to contractors to find innovative ways to eliminate the Officer, with Orange Countys first hybridwaste typically created during the manufacturing process. Rather than merely electric bus.paying a waste hauler to take the materials away from the loading dock, theresource management approach makes the supplier a partner inside the plant, searching for waste reduction and recyclingopportunities wherever they might occur. Cardboard boxes, wooden pallets and even cooking oil from cafeterias are nowturned into useful products, rather than filling landfills.We have also instituted a chemicals management system in our facilities that puts a single supplier in charge of allchemicals coming into the plant. The supplier is paid based on production, not the amount of chemicals used, whichprovides an incentive to reduce chemical use. This system means we no longer buy chemicals-we buy chemical services.Key 3: Move from Stakeholder dialogues to partnerships for progress — Shared understanding, aligned action andsocial inclusionWe believe the best way to meet the many complex issues facing us is to include diverse input in our decision makingprocess, to gather the best ideas, and keep a collective eye on a common goal.Vauxhall, along with 19 other business and government bodies, are partnering with the Sustainability: Integrated Guidelinesfor Management (SIGMA) Project. The goal of SIGMA is to create a methodology for a company of organization to integratesustainability into business practices.Key 4: Provide and inform consumer choice — A different type of demand by enhancing appreciation for valuesthat support sustainabilityEducation and information play a key role in shaping consumers understanding of the consequences of their choices. Weare using the Internet to help education consumer through the Gmability.com website and the earthtroop.com website.General Motors China Group donated five electric-powered vehicles to the Ministry of Science and Technology of China aspart of the companys support for a cleaner environment. The five vehicles, two EV1s and three electric S-10 pickup trucks,were delivered to the ministry in the China EV Field Test and Demonstration Zone located in Shantou, Guangdong, provincein South China.Key 5: Improve market framework conditions — A stable, corruption free, socio-economic framework that facilitatespositive change