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 WalMart 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
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
Threats
Alternative Solution 1
Improving 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 1
Improving 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 1
Improving 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 2
Shrinking 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 3
Productivity
• 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 3
Productivity
• 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 4
Product 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
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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=B3NGN4t4h
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