Tim Lee
President, GM International Operations
World’s Emerging Markets
“The equalizer of
missed opportunities”
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The New GM
¶
Leaner company with a healthy balance
sheet and a global focus
¶
Six consecutive quarters of profitability
¶
Sales and market share are increasing
¶
Growing focus on South Africa
3
Seismic Shift in Industry Demand
¶
U.S., Western Europe and Japan drove
growth in the industry’s first century
¶
Emerging markets are driving growth today
¶
In 2010, China set a new global industry
sales record
4
GM International Operations
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Emerging Markets
¶
Nominal GDP per capita below $10,00015,000
¶
Growing personal incomes and rising
middles classes
¶
New middle classes are driving demand for
four-wheel transportation
¶
Huge opportunity as customers and as a
source of talent
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Prosperity & Vehicle Sales
Nominal GDP Per Capita
8
New Vehicle Sales Per 1,000 People
2000
Country
2010
1
14
2
14
47
3
1
3
35
7
39
9
49
Vehicle Ownership
Country
Car Parc /
1,000 People
U.S.
812
Australia
717
China
57
Egypt
32
India
18
Japan
548
Korea
347
Russia
265
S. Africa
171
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Emerging Market Challenges
¶
Government policies that can change quickly
¶
Varying legal systems
¶
Popular unrest and rapidly changing political
situations
¶
Varying industry standards
¶
Macroeconomics risks
¶
Poor infrastructure
¶
Fluctuating petroleum prices
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No “Silver Bullet”
Top Models/Segments (H1 2011)
Indonesia
MPV-B (Small MPV)
Thailand
Pickup-D (Medium Pickup)
S. Korea
Car-D (Midsize)
Toyota Avanza
Isuzu TFR
Hyundai Sonata
Russia
Car-C (Compact)
Lada Nova
China
Car-C (Compact)
Hyundai Elantra
S. Africa
Car-B (Small)
VW Polo Vivo
India
Car-A (Mini)
Suzuki Alto
0%
10%
20%
30%
Share of Industry
40%
50% 10
Number 1 in BRIC Markets
12.2% Market Share
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GM is Not Sitting Still
¶
Signed an agreement with SAIC to co-develop a new electric
vehicle architecture, opened the GM China Advanced Technical
Center and broke ground for a new manufacturing plant
¶
Moving forward on a joint venture with SAIC and began
production of a locally developed diesel engine at our new
powertrain plant
¶
Opened a new engine plant and began production of the nextgeneration Chevrolet Colorado pickup
¶
Announced we will reopen our vehicle manufacturing plant
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Expanding production capacity to about 350,000 units annually
¶
Preparing to begin commercial production at our new engine
plant
12
Focus on Key Segments
Compact
Car-C
Excelle
Cruze
Volt
Baojun 630
7.7M
Small
Car-B
New Sail
Aveo/Sonic
5.4M
Mini
Car-A
Spark/Spark Lite
Spark/Beat
4.0M
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Product Development Strategy
GLOBAL ARCHITECTURES
1
Chevrolet Cruze
Chevrolet Sonic
Chevrolet Spark
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Product Development Strategy
GLOBAL ARCHITECTURES
1
Chevrolet Cruze
Chevrolet Sonic
Chevrolet Spark
REGIONAL SOLUTIONS
2
Chevrolet Tavera
Chevrolet Niva
Chevrolet Utility
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Product Development Strategy
GLOBAL ARCHITECTURES
1
Chevrolet Cruze
Chevrolet Sonic
Chevrolet Spark
REGIONAL SOLUTIONS
2
Chevrolet Tavera
Chevrolet Niva
Chevrolet Utility
PARTNER COLLABORATION
3
Chevrolet New Sail
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GMIO Brands
Global
International
Regional
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Electrification
Chevrolet Volt
Buick LaCrosse with eAssist
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South Africa
¶
Key component of GM’s emerging market
strategy
¶
GM began doing business in South Africa
nearly a century ago
¶
Sold nearly 55,000 vehicles in 2010, for
market share of over 11%
¶
Sold more than 50,600 vehicles in the first
nine months of 2011
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New Beginning in Africa
¶
GM North Africa
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GM Sub-Saharan Africa
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Will enable GM to leverage resources across
Africa and GMIO’s growing footprint
¶
Launching important new assembly programs
– Includes Libya, Algeria, Tunisia, Morocco, Western
Sahara and Mauritania
– Integrated into Egypt operations
– Includes central and southern Africa
– Integrated into South Africa operations
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Growing Investment in South Africa
New Chevrolet Utility
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Growing Investment in South Africa
Chevrolet Sonic Hatch
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Growing Investment in South Africa
Vehicle Conversion &
Distribution Center
Parts Distribution Center
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Growing Investment in South Africa
¶
Invested over R 100 million in scholarship
programs, supporting 2,000 students
annually
¶
Partnered with Nelson Mandela Metropolitan
University to develop key skills
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GM South Africa Foundation is contributing
to education and housing improvements
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South Africa Faces Competition
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Competing with other BRICS and other
emerging markets globally
¶
South Africa accounts for less than 1% of
global industry sales
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Becoming Globally Competitive
Establish clear and stable rules for investment and expansion
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Becoming Globally Competitive
Develop high-volume, world-class suppliers
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Becoming Globally Competitive
Establish free and preferential trade agreements
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Becoming Globally Competitive
No. of Days Lost Due to Strikes -2009
1.6
1.4
1.2
Millions
1
0.8
0.6
0.4
0.2
0
South Africa
20.6 million days
were lost in South
Africa in 2010
Spain
USA
Poland
Russia
Source: European Industrial Relations Observatory
Address the labour issue
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Becoming Globally Competitive
Increase investment in education
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Becoming Globally Competitive
Develop stable, cost-competitive infrastructure
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Factors Influencing Investment
¶
Market and volume opportunities
Competitiveness of sourcing
¶ Future prospects
¶
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Automotive Industry Has Changed
¶
Emerging markets are the driving force and
have created new opportunities
¶
Winners will be companies that capitalize on
opportunities and offer quality products and
new technology
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South Africa Can Become a Leader
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THANK YOU
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