General Motors

Group # 10

Kyle Hendrick

Chris Redford

Aaron Jenkins

Problem Statement

• General Motors is losing it’s dominance to foreign automakers, because they lack competitiveness and are losing market share.– In 2007, GM lost 39 billion dollars, which is

the largest annual loss ever by any automaker

Company Overview & History

• General Motors was founded in 1908 in Flint Michigan.

• Has been the most dominate automaker since 1931

• 284,000 Employees

– About 74,000 are union employees

• Manufacture Cars & Trucks in 35 Countries

Company Overview & History

• Global Headquarters is located in Detroit, Michigan

• As of 2007, General Motors is the fifth largest company in the world (behind Wal-Mart Stores, Exxon Mobil, Royal Dutch Shell, and BP.)

SWOT Analysis

Internal Strengths Weaknesses

Product Development -Offers 87 Different Makes and models this year

-It takes GM 33% longer to bring cars into production

Productivity -Employ 284,000 People World Wide

-Relationship with UAW

Dealerships -Name Recognition-Greater vehicle selection

-Too Many, each dealership makes low profits-Too much inventory

Quality -GM Offers 8 top of the line brands

-Safety Recalls and Complaints

SWOT Analysis

External Opportunities Threats

Product Development -Faster and Cheaper Path to the Showroom

-Companies Average 3 Years to production

Productivity -Process and assemble more vehicles quickly

-Faster assembly for other companies makes production for them cheaper

Dealerships -Reducing the number of dealerships can reduce costs caused by inventory sitting on the lot.

-Companies with less dealerships are more exclusive and have less inventory

Quality -Improving quality can boost sales and customer satisfaction

-Companies with less makes & models to show higher quality

Alternative Solution 1Improving GM Quality

• In the eyes of most consumers today, foreign auto manufacturers hold a higher image of quality.

• The consumer report for reliability placed 9 foreign automotive companies in the top 10 most reliable companies. (consumerreports.org)

• Many GM companies are classified as less than average reliability. (Hummer, Cadillac, Pontiac, Chevrolet, and GMC)

Alternative Solution 1Improving GM Quality

• In 2005 GM recalled over 2 million vehicles, mostly SUVs. Problems ranged from brake problems, to overheating of certain wires, to seat belt issues

• Most recently, in 2007 GM recalled 275,936 Cadillac, Pontiac and Saturn sedans and crossovers due to a problem in the rear-axle pinion seal that could lead to a fluid leak and cause drivers to lose control of their vehicles.

Alternative Solution 1Improving GM Quality

• GM needs:– Increased image of quality.

• GM needs to concentrate on increasing reliability while developing new vehicles and models.

• GM can also decrease the use of plastic and vinyl to give a feel of better quality.

Alternative Solution 2Shrinking GM’s Dealership Network

• GM currently manufactures 48 different models within 8 companies. (Chevrolet, Pontiac, Hummer, Cadillac, etc.)

• With this many models, GM has an extensive dealership network.

• In the last year, GM reduced its network by almost 1000 dealers.

• This downsizing needs to continue in a big way. Toyota, with only 1244 dealerships, sold as many cars as Chevrolet who has 4000.

Alternative Solution 3Productivity

• GM takes too long to assemble its vehicles, which is leading to greater costs per vehicle, due to increased labor and time in the factories.

• Working with the United Auto Workers union to change their labor law requirements to allow GM to reduce manufacturing costs and time.

Alternative Solution 3Productivity

• Harbour Consulting can also help GM increase its productivity.

• Harbour Consulting is a manufacturing and management consulting firm focused on improving the overall competitiveness of manufacturing companies.

Alternative Solution 3 Productivity

• According to Harbour Consulting, this is how GM compares.

• These are company averages.

*2003

Alternative Solution 3 Productivity

• GM, however does have 4 of the 10 most productive assembly plants in 2007.

• Oshawa No. 2 averaged 15.68 Hrs./car

• Oshawa No. 1 averaged 16.34

• Fairfax, Kansas averaged 17.89

• Lordstown, Ohio averaged 19.17

• All of GM’s Plants need to be averaging these production times.

Alternative Solution 4Product Development

• Decrease the time and cost needed to take a car from the drawing board to the show room.

• According to our research, it should take about 3 years to accomplish this, while it take General Motors about 4 years.

Alternative Solution 4

• Invest in the help from the company

Infosys

Infosys-Company

• What is Infosys?

• Infosys is a global leader in the "next generation" of IT and consulting with revenues of over US$ 3 billion.

• Infosys defines, designs and delivers technology-enabled business solutions.

• Infosys is based in Bangalore, India

Where Infosys can help?

• Infosys can help in every phase of the product development process– Ideation– Research and development– Optimization– Testing– Pre-Production prototyping– Production Control– Post-Production Lifestyle Monitoring– Support

What Infosys Offers

Parts that can be improved

Results from Infosys

GM Commercial

• http://youtube.com/watch?v=B3NGN4t4hm4