Marketing Case Project: General Motors

Executive Summary General Motors is one of the largest motor vehicle manufacturers in the world and has been a market leader for over 75 years. The company itself has been going through changes especially in the way that they are creating products and on an internal basis, however, there are some changes that the company still needs to overcome. One of the changes that General Motors has promoted is its Flexible Fuel Vehicles which do not run on solely petroleum, rather Ethanol 85. These vehicles cost only $150 more than a normal vehicle, however, the lacking of E-85 fueling stations throughout the nation are making it harder for consumers to take advantage of this greener technology while also saving money. The company has also decided to implement a widespread corporate restructuring initiative to help alleviate company debt as a result of rising costs of employee healthcare, benefits, and pensions. Such a plan includes the closure of over a dozen North American plants and manufacturing lines, as well as making substantial job cuts. This three-year endeavor is necessary in keeping General Motors in line with competitors. General Motors is struggling to keep up with its competition in hybrid technology. In order to become a major competitor in the automotive market GM needs to penetrate the hybrid market. In the past few years this market has more than doubled and GM has done nothing to obtain market share. The suggestion is that General Motors needs to implement a strategy to produce hybrid automobiles and take market share away from its Asian competitors.

Table of Contents

Introduction Christopher James is from Seattle, Washington and currently owns a GMC Denali and has owned GM vehicles throughout his entire lifetime. His son Pallab recently turned 16 years old and Christopher wanted to buy him a new car while also teaching him to be environmentally and economically considerate. Christopher has had a brand loyalty to GM vehicles but is having trouble with GM because the only vehicles that they offer that are environmentally friendly are flexible fuel vehicles. The problem that he came to with these types of vehicles is that out of 170,000 total fueling stations there are only 50 fueling stations that support flexible fuel vehicles and most of which are in the Midwest. Ideally Christopher would like to purchase his son Pallab a hybrid vehicle but GM currently does not offer any type of hybrid and he is having problems switching to another brand of car. Company Background The General Motors Corporation was founded in 1908 and is currently the worlds largest producer of automobiles. Currently, the United States holds the largest national market for General Motors. China, Canada, the UK, and Germany follow the United States for GMs largest markets. General Motors, also known as GM, currently

employs people from all parts of the world with an employee population of 326,999 (General Motors). The current headquarters of the company resides in Detroit, Michigan. Some of the brands that GM encompasses consist of: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Oldsmobile, Opel, Pontiac, Saab, Saturn, and Vauxhall (General Motors). Within all of these companies, GM produces vehicles in 33 countries and in 2005 9.17 million GM cars and trucks were sold globally (General Motors). Along within the vehicle aspect of GM, the company also owns a financial company known as GMAC Financial Services. This sector of GM offers residential and commercial financing and insurance (General Motors). Another sector within General Motors is a subsidiary company known as OnStar, which provides vehicle safety, security, and information services (General Motors). General Motors has purchasing collaborations with such companies as Suzuki Motor Corporation, Isuzu Motors Ltd of Japan, Toyota Motor Corporation of Japan, DaimlerChrysler AG, and BMW AG of Germany (General Motors). The company as a whole also has manufacturing ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry Corporation of China, AutoVAZ of Russia, and Renault SA of France (General Motors). General Motors also offers vehicle accessories and parts through GM owned brands such as GM Goodwrench and ACDelco. GM brand engines and transmissions are marketed through the GM Powertrain line. On June 30, 2006, Kirk Kerkorian, whose Tracinda Corporation is the thirdlargest shareholder of General Motors, proposed a global alliance between GM and the

Renault-Nissan group (General Motors). Since GM has recently had financial issues, Carlos Ghosn, the CEO of both Renault and Nissan, expressed interest in possibly acquiring a stake in GM (General Motors). After months of negotiating between both parties, the end decision could not agree on the perceived benefits of acquiring a massive shareholders position within GM and an announcement was made to end the discussions about an alliance (General Motors). Situational Analysis Industry Analysis Threat of new entrants: The threat of new entrants is low in the automobile industry since the industry is very mature and has reached great economies of scale. Some common entry barriers new automobile manufacturers face include insufficient start-up capital, difficulty accessing distribution channels, lack of dealership availability, and extensive research and development costs necessary for product innovation. Power of suppliers: The bargaining power of suppliers is very low in the automobile industry as they saturate the automotive market. There are many more automotive part suppliers in relation to automobile manufacturers; thus, giving manufacturers the power to switch suppliers if necessary. Power of Buyers: The bargaining power of buyers is relatively high in the automobile industry because individual consumers purchase the majority of the industrys output, which constitutes the largest source of revenue. Therefore, manufacturers must recognize consumer needs and wants, and conform to changing consumer trends in order to boost sales volume.

Availability of substitutes: The availability of substitutes in the automotive industry is moderately low. Possible alternatives to automotive transportation include walking, riding a bike, or access to public transportation such as a bus, subway or train. The availability of such alternatives depends heavily upon the geographic location of the consumer. In cities such as Chicago or New York City, a car is not necessary due to easy subway access; however, a non-urban dweller may seek automobile access as a more viable means of transportation. Competitive Rivalry: Competition within the automotive industry is very strong due to a lack of product differentiation and opportunities. All manufacturers produce similar products, cars, trucks, or SUVs; thus, making price, quality and durability, the primary and weak basis for differentiation. In attempts to increase sales and gain more market share, automobile companies often use comparative advertising to emphasize areas where it outperforms its competitors. Competitive Analysis The automobile industry is highly competitive. The North American automobile industry is dominated by whats known as the Big Three: General Motors, DaimlerChrysler, and Ford Motor Company (General Motors, 2006). The two largest foreign competitors include both Toyota and Honda. General Motors, once the leading car manufacturer in the industry, is now struggling to keep up with competition. Since Toyotas introduction of the Prius, an innovative gas electric hybrid car, many other manufacturers followed suit changing the direction of the automobile industry (Toyota Hybrid Synergy Drive, 2006). Ford has also introduced a line of new environmentally friendly cars in Europe boosting company sales. However, GMs failure to keep up with

changing market trends has left the company behind its competitors; thus, losing a great deal of market share (See Appendix A for list of competitors and market share). Economic Analysis Since the attacks of September 11, 2001, the nations economy suffered from a drastic decline in consumer spending. However, the overall economy is now on the rise and continues to remain strong. The real after-tax income per person has risen by 9.8% since President Bush took office, the U.S. economy has grown a solid 2.9% over the past four quarters, productivity has grown at an annual rate of 3% since the first quarter of 2001, and the employment rate continues to increase (Jobs and Economic Growth, 2006). In addition to the other economic improvements, gas prices have fallen almost 82 cents a gallon since early August (Jobs and Economic Growth, 2006). Since the boom in the economy, GM has gradually started making more profit. GMs worldwide vehicle sales for 2005 were 9.2 million units compared to 9.0 units in 2004 (General Motors Corporation, 2005). And over the past five years, the global automotive industry has continually risen year-to-year growing approximately 13% from 2001-2005 (General Motors Corporation, 2005). Social Analysis For many years, the baby boomer generation has been the primary target market for automobile manufacturers. However, as this generation nears retirement, and is spending less money, automakers are shifting their focus to younger generations; generation Y in particular. This generation is reaching a point of greater financial stability; thus, contributing greatly to the amount of consumer spending on luxury products such as automobiles (Baki, 2004). According to analysts, it is projected by 2011

generation X and generation Y combined will account for roughly 40% of total vehicle sales (Baki, 2004). Consumer trends are also shifting from oversized passenger vehicles, such as trucks and SUVs, to smaller more economic, fuel efficient automobiles (Baki, 2004). Therefore, marketing efforts must shift to meet changing consumer demands. Such marketing efforts, however, depend heavily on geographic location of the consumer. For example, marketing a convertible in a cold climate is not as economical as marketing it in a warmer climate; therefore, the companys marketing mix must be adjusted accordingly to geographic conditions. Problem, Opportunities, and Decision Problem General Motors dramatic decline in sales and stock market activity is largely due to a variety of both internal and external factors. Such factors include rising energy prices and consumer resistance. As a result of changing fuel prices, many consumers are purchasing smaller, more fuel efficient automobiles consistent with current market trends. Another factor causing the decline of General Motors is related to a deteriorating internal structure on both the management and supply chain levels. Opportunity General Motors has several options for alleviating an overall decline in sales. Such alternatives include offering consumers the choice of new product lines which consist of smaller and more fuel efficient hybrid vehicles. Secondly, the company has the option of restructuring management strategies by focusing on their marketing, social, situational, and psychological influences. Decision

After analyzing the various alternatives, the most appropriate action for General Motors is to offer consumers a new line of innovative energy efficient vehicles, while also restructuring General Motors internal management method. Alternative I (Company Provided): Ethanol 85-Flexible Fuel Vehicles Marketing Mix Strategy According to the US Department of energy, E-85 is an alternative fuel source that has superior performance characteristics (http://www.eere.energy.gov/afdc/e85toolkit/). The composition of ethanol 85 is basically 85% ethanol and 15% petroleum based. One of the perks to the use of E85 and ethanol as a whole is that it is a domestic, environmentally friendly fuel that enhances the nation's economy and energy independence (http://www.eere.energy.gov/). It is also completely renewable. Also governmental tests have proven that not only is it renewable but in terms of the environment it results in the reduction of harmful benzene and hydrocarbon emissions. This fact is solely based on comparisons with that of gasoline. E85 can also reduce carbon dioxide, and in-turn reduces the greenhouse effect. Ethanol also degrades quickly in water and, therefore, poses much less risk to the environment than an oil or gasoline spill. (See Appendix B for E-85 Alternative Fuel Diagram). General Motors has seen the benefits to this alternative energy source as many consumers are switching to this method of fueling. According to its website, as of right now some of the car lines that General Motors has implemented this to include: 2007 3.5L Chevrolet Impala and Monte Carlo Sedans, 2005-2007 5.3L Chevrolet Avalanche SUVs, 2002-2007 5.3L Suburban, Tahoe, Yukon, and Yukon XLs, 2002-2007 Sierra and Silverado Trucks, All 2000-2002 Chevy S-10 Trucks (after 12/99), All 200-2002

Sonoma Trucks (after 12/99). Many of these models however, also come with standard petroleum fueling options. In terms of General Motors and its method for promoting greater usage of E-85, "GM will work with VeraSun to add E85 at 20 gas city locations in the Chicago area, and a pilot program by GM and shell oil products U.S. will test consumer interest in E85 at six Shell Chicago locations" ("Growing Together to Fuel" 1). The main issue dealing with E-85 and General Motors promotion of this alternative is "The limited availability of E85 means that most consumers don't use the alternative fuel even though the [General Motors] said they have a combined 3 million vehicles on the road capable of using E85." ("Growing Together to Fuel" 1). The General Motors North American Vice President for Marketing and Advertising reportedly said that they would start to place yellow caps on their Flexible Fuel Vehicles so that consumers can start to associate their vehicle with this alternative fuel. He also reported "the company's in-vehicle On-Star help system "will help people find E85 fueling."" ("Growing Together to Fuel" 1). The main reasoning behind this is because "many consumers may not know whether or not their vehicles can run on E85 ("Growing Together to Fuel" 1). Financial Analysis Financially it is not a huge cost to convert vehicles to have E-85 capabilities. In terms of consumers, "These vehicles, [cost] about $150 more than standard models, [but] have not been advertised in the past, probably due to the shortage of stations handling E85" ("Fence Post" 16). For General Motors the shortage of Flexible Fuel Vehicles that have been purchased is a direct correlation with the shortage of fueling

stations, which financially probably has not been good for the revenue of the company if one were to look specifically at sales of these types of vehicles. General Motors may want to market these vehicles from a standpoint of the prices of E-85 versus gasoline. This is because the price comparison for consumers is dramatic. As of Sunday, May 21st, 2006 in Greeley, Colorado E85 was priced at $1.99/gallon whereas regular unleaded fuel was priced at $2.80/gallon. Although $1.99/gallon is still somewhat pricy when looking at what prices for gasoline used to be it is also almost a dollar cheaper than that of conventional gasoline. This price difference is quite significant (http://afdcmap2.nrel.gov/Website/Stations/viewer.htm). Pros There are many pros for the company with this alternative. Some of these include creating an image to the public that General Motors is trying to promote a movement to a greener method of transportation. One of the perks to the use of E85 and ethanol as a whole is that it is a domestic, environmentally friendly fuel that enhances the nation's economy and energy independence (http://www.eere.energy.gov/). It is also completely renewable. Also governmental tests have proven that not only is it renewable but in terms of the environment it results in the reduction of harmful benzene and hydrocarbon emissions. This fact is solely based on comparisons with that of gasoline. E85 can also reduce carbon dioxide, and in-turn reduces the greenhouse effect. Ethanol also degrades quickly in water and, therefore, poses much less risk to the environment than an oil or gasoline spill. These facts may seem attractive to consumers and may also draw a new customer base. Also, by offering these types of vehicles General Motors will be able to

break into a different market because they arent solely going to be using petroleum for its vehicles. Cons Some of the cons to this alternative include the fact that many consumers who do have a General Motors Flexible Fuel Vehicle do not actually know that they have this type of vehicle. Also many of the fueling stations are based mainly in the Midwest and "there are more than 170,000 gas stations nationwide, only 500 offer E85. About 100 are in Illinois." ("Growing Together to Fuel" 1). Another potential con is that this new alternative is really only a temporary alternative. There is a worldwide rush and initiative to find an alternative source of energy. E-85 still is partially based off the production of petroleum and these vehicles as are the current petroleum based vehicles will only be around for so long and consumers know that. Alternative Two (Company Provided): Corporate Restructuring General Motors, along with many other American-based companies, suffered a decline in stock market activity and overall company finances following the attacks of September 11, 2001. The companys rising costs of retiree health care, pensions and benefits have exceeded expected rates of return, impelling GM to develop a corporate restructuring initiative (General Motors, 2006). Following a $10.6 Billion loss in 2005, General Motors decided to carry out its three year restructuring strategy, which includes the closure of nearly a dozen manufacturing plants, making substantial job cuts, introducing new automobile lines, and redeveloping General Motors overall marketing strategy (General Motors, 2006). Most recently, General Motors announced it would

consider a joint enterprise with competitors Renault and Nissan; however, efforts to form the alliance failed. Overall, the company still trusts it is on track with the new plan and CEO Rick Wagoner believes that both job cuts and plant closures are necessary for GM to get its costs in line with other major global competitors (Maynard, 2005). Marketing Mix Strategy: Product: General Motors has established a reputable name in the automotive industry, which is widely recognized for both reliability and affordability. If GM restructures, consumers may start to view the company as undependable and lose trust if they see GM as a declining company. On the other hand, corporate restructuring could result in a new brand image that increases sales because consumers are more drawn to General Motors knowing new and more qualified employees have been hired. Price: Price is an important component in consumers assessment of value. Consumers often seek reasonable cost in relation to quality; GM offers fair prices and maximum quality. Price will not likely be affected by corporate restructuring. If corporate restructuring costs the company substantial capital then car prices may rise; however, if General Motors can maintain the brand image it has established for itself, then consumers will continue to believe that the product is worth the financial sacrifice. Place: Place is important in business because the product must to be easily accessible to consumers. Corporate restructuring would not affect where GM dealerships are located, just the distribution of manufacturing lines; therefore, it would not significantly affect profit loss or gain. Promotion: A company cannot sell a product if they do not competitively advertise in magazines, television commercials, billboards, or other forms of media. The

advertisements must cater to an appeal and convince the consumer they need to product being advertised. If General Motors advertises its automobiles as coming from a newly restructured corporation, GM can convince customers the product is improving along with internal company motives. Financial Analysis: Through the implementation of long-term corporate restructuring, General Motors plans on developing promising new product lines; thus, increasing market share, improving product quality, and strengthening company finances. During the first quarter of 2006, GM earned nearly $400 million in sales revenue indicating the potential longterm benefits of such a plan (General Motors, 2006). General Motors was also able to slash its annual dividend from $2 per share to $1 per share, saving the company nearly $565 million a year (General Motors, 2006). With recent company cutbacks as well as health care benefit reductions taking effect, General Motors could potentially reduce company costs of up to $7 billion by the end of 2006, $1 billion more in savings than previously projected, which constitutes nearly one-sixth of GMs annual spending of $42 billion (Maynard, 2005). Pros There are many long-term financial advantages associated with corporate restructuring. GM earned $400 million in the first quarter of 2006 alone providing promising evidence about the future financial success of the restructuring program (General Motors, 2006). In 2006, many GM workers agreed to company buyouts well over the company goal, greatly reducing GMs operating costs and future liability (General Motors, 2006). GM was able to slash the annual dividend from $2 per share to

$1 per share, saving the company nearly $565 million a year (General Motors, 2006). Shutting down plants, assembly lines, and reducing employee numbers will greatly reduce additional company costs, allowing the money to benefit greater product development. With improving sales, GM can open new plants and modify existing plants to maximize the quality and efficiency of output. Cons The Primary disadvantages of GMs corporate restructuring relate to both internal and external factors. GM runs the risk of losing consumer loyalty because consumers may begin to question the strength, reliability, and dependability of the company during its time of corporate crisis. Corporate restructuring is very expensive; therefore, such an initiative is a huge risk for a company already suffering the consequences of financial debt. Job cuts will have a negative effect on unemployment rates, especially Michigan which currently has the highest rate of unemployment of 6.4 Percent in contrast to the national average of 5.1 percent. (Maynard, 2005). Many standout plants and assembly lines, ranked among the companys best in quality surveys, are scheduled to shut down (See Appendix C for a complete list of plant closures). Such plants include the Saturn plant in Tennessee, which is known for superior labor-management, as well as plants in Oklahoma City and Oshawa, Ontaio (Cervone, 2006). This plan allows for major foreign rivals, such as Toyota, to expand and build more manufacturing plants in North America; thus, increasing Toyotas market share and further decreasing GMs (Maynard, 2005). Alternative Three (Company Provided): Hybrid Initiative Marketing Mix General Motors needs to modify its business strategy and focus on producing hybrid automobiles. There are many reasons for General Motors to shift towards hybrid

vehicles but the principal justifications involve the statistics of the fuel costs, fuel efficiency, and money. General Motors should also consider the global and national factors that have less impact. Hybrid sales have risen consistently in the U.S., from 9,350 cars in 2000 to 20,287 in 2001, 35,000 in 2002 and 47,525 in 2003 (Getting There: a Guide to PlanetFriendly Cars, 2004). Automotive analyst J.D. Power and Associates foresees annual sales totaling 350,000 by 2008, accounting for two percent of all car sales (Getting There, 2004). This estimate indicates that demand for hybrid technology is increasing substantially and General Motors has to start manufacturing hybrid vehicles in order to regain the market share it has lost in the United States. Today, having a fuel-efficient vehicle is important because of the benefits it has for the environment as well as lower cost for gas. As fuel prices increase and with the sales of sport utility vehicles declining, General Motors needs to penetrate the market and compete head on with its competitors. Hybrid cars dominate the list of the most fuelefficient vehicles for 2007 (Fuel Economy Guide, 2006). Toyota leads in sales for automobiles in America while Ford remains on top for SUVs. A generation ago, General Motors produced half of the vehicles sold in America, but today its just over one quarter. General Motors cant keep up with the automobile market and it lost over one billion dollars last year (Industry Giant Falling Behind, 2005). This trend will continue if they dont start producing what consumers want. Hybrid vehicles provide drivers with an innovative, efficient, and affordable option. After years of 'on the road' development, the new hybrids have become a practical choice for consumers. Hybrid technology, compared to alternative fuel technologies, is

gaining a considerable amount of interest from consumers and other manufacturers. The difference between hybrid and standard fuel vehicles is that hybrid vehicles use two or more power sources, namely an electric motor and an internal combustion engine. The electric motor kicks in during slow speeds, such as with city traffic driving, saving on gasoline and reducing emissions. Consumers around the world are concerned with saving their money as well as the environment and the hybrid vehicles are the logical decision to accomplish those goals. As consumer demand for hybrid vehicles continues to rise, prices are expected to stabilize and become more affordable for average consumers. General Motors will boost its image by supporting the environment through manufacturing hybrids and will lower the United States dependence on foreign oil. The reasonable use of hybrid vehicles will conversely decrease the dependence on foreign oil. This is an especially important point in todays political climate. General Motors production of hybrid cars will help strengthen the hybrid revolution and eventually help America become independent from foreign oil sources. For consumers, buying a hybrid sends a message that says, 'I am willing to fund fuel efficient technology.' This message is especially aimed at automakers that have contributed to America's yearly increase in foreign oil consumption. Financial Analysis The revenues in United States market totaled $373.2 million in 2005 and expect to reach $851.9 million in 2012 (Growing Demand for Hybrid Vehicles, 2006). As gas prices rise consumers are more meticulous about which type of vehicle they will purchase.

Hybrids are cost companies roughly $2,000 dollars to produce in factories while they sell for around $25,000 (Slim Fast). By the end of the decade the cost of purchasing one of these vehicles will decrease dramatically. The consumers will save $200-$1500 on fuel costs each year if they purchase a hybrid (Fuel Economy Guide, 2006). General Motors can establish a platform to build a wide variety of fuel-efficient vehicles. The cost of producing a hybrid vehicle is much lower than the selling price of the automobile that the company grosses a substantial profit. Pros General Motors will increase its revenue, over a period of time, by producing hybrid automobiles because of the increasing demand from high oil prices. The public will look favorably upon the company because it demonstrates GMs compassion towards the people and the environment. GMs product mix will increase allowing consumers to choose from a wide variety of products. Cons The negative aspects of creating a hybrid line will be cutting costs from other automotive lines. Some product lines, that arent as successful, will need to be cut in order to make way for the new hybrid line. Jobs and other automobiles will have to be cut in order to have the financial security to produce the hybrid vehicles. GM will have to take a financial hit for a few years until they start to break even. The process of creating the hybrid automobiles will take time to make money. Conclusion and Recommendation Conclusion

To conclude, it is quite apparent that General Motors has been consistently trying to develop new operations by which they can better the company as a whole. With problems of a potential merger it has become more and more prevalent that General Motors must start acting versus waiting to act. The company has been promoting Flexible Fuel Vehicles, which has been somewhat beneficial to its sales but also to its public image. Consumers are purchasing green products and General Motors has been trying to follow this trend. In conjunction with the development of green products, General Motors is also currently undergoing corporate restructuring. In efforts to remove company debt, GM has implemented a three-year restructuring strategy. The strategy includes: the closure of nearly a dozen manufacturing plants, making substantial job cuts, introducing new automobile lines, and redeveloping General Motors overall marketing strategy. In order for GM to remain competitive in the automobile industry, such a strategy is necessary. Recommendation The recommended strategy that General Motors needs to implement in order increase its market share is to produce hybrid vehicles. The hybrid industry is increasing in sales by each year and General Motors competitors are capitalizing on it. If GM can switch its strategy to implement fuel-efficient vehicles into its product line then consumers will realize GMs social responsibility towards the environment. This strategy will help GM effectively compete with competitors in the future. Implementation and Control Issues Implementation

To implement this recommendation the strategy that seems most appropriate would be to focus on creating a hybrid vehicle product line. The means by which General Motors should go about this strategy/alternative would be to research its competition to see what is working and what is not working and also how they could possible make an even better hybrid than that of its competition. General Motors may also need to cut existing non-profitable product lines to further the development of hybrid vehicle production.

Control Issues One of General Motors control issues deals specifically with its competition. This is because its competition is already in the market place for hybrid vehicles. Such companies known as Toyota, Lexus, and Honda already have these vehicles and already know how to market them as well as focus on existing vehicle malfunctions and general vehicle problems. General Motors may initial problems with a new hybrid vehicle line just as any new product line may have initial malfunctions. Another factor that may be a control issue is the fact of its recent plant shutdowns. This is because this leaves less room for General Motors to produce vehicles, which also may play a part in the discontinuation of other non-profitable vehicle lines.

References http://afdcmap2.nrel.gov/Website/Stations/viewer.htm http://www.eere.energy.gov/ Automotive Industry. United States Department of Labor. (2005, July 18). Retrieved October 28, 2006 from www.doleta.gov. Baki, Matt. Automotive Industry Analysis GM, DaimlerChrysler, Toyota, Ford, Honda. Academic Mind: Kansas State University. (2004, November). Retrieved October 28, 2006 from www.academicmind.com. Cervone, Tony. General Motors Statement Regarding the Resignation of Jerome B. York From the GM Board Of Directors. General Motors Company Release. (2006, October). Retrieved October 28, 2006 from www.gm.com. "Fence Post." Daily Herald (Arlington Heights, IL) 5 Apr. 2006: 16. Questia. 1 Nov. 2006 <http://www.questia.com/PM.qst?a=o&d=5014547299>. "Fuel Economy Guide." www.fueleconomy.gov. 5 Nov. 2006 <www.questia.com>. General Motors. Wikipedia Online Encyclopedia. (2006 ed.). Retrieved October 28, 2006 www.wikipedia.com. "General Motors." Wikipedia, The Free Encyclopedia. 13 Oct 2006, 20:15 UTC. Wikimedia Foundation, Inc. 16 Oct 2006 <http://en.wikipedia.org/w/index.php? title=General_Motors&oldid=81272851>.

General Motors Corporation. Annual Report: Financial Highlights. (2005). Retrieved November 2, 2006 from www.gm.com. "Growing Demand for Hybrid Vehicles - Implications for Motor Manufacturers." http://www.industrialautomation.frost.com. 14 Sept. 2006. 5 Nov. 2006 <http://biz.yahoo.com/prnews/060914/dath012.html?.v=71>. "Growing Together to Fuel Solutions." Daily Herald (Arlington Heights, IL) 12 Feb. 2006: 1. Questia. 1 Nov. 2006 <http://www.questia.com/PM. Jobs and Economic Growth. The White House Online. (2006). Retrieved November 2, 2006 from www.whitehouse.gov. Maynard, Micheline. G.M. Set to Drop 5,000 More Jobs and Shut Plants. New York Times (2005, November 25). Retrieved October 28, 2006 from www.lexisnexis.com/academic. Motavalli, Jim. "Getting There: a Guide to Planet-Friendly Cars." E. July-Aug. 2004. 5 Nov. 2006 <www.questia.com>. Schneider, Greg. "Industry Giant Falling Behind: GM Reports $1.1 Billion Loss." Washington Post 20 Apr. 2005. 25 Oct. 2006 <www.washingtonpost.com>. "Slim Fast: Toyota Aims to Take Size and Weight Out of Its Hybrid System." 5 Nov. 2006 <http://www.edmunds.com/insideline/do/News/articleId=117008>. Toyota Hybrid Synergy Drive. (2006). Retrieved November 2, 2006 from www.toyota.com.

Appendix Appendix A: Light Vehicle Sales by Company

WARD'S U.S. Light Vehicle Sales by Company

Month October 2006 Chrysler Group Ford GM Big 3 Total Honda Hyundai Isuzu Kia Mazda Mitsubishi Nissan Subaru Suzuki Toyota Asia Total BMW Mercedes Porsche Volkswagen Europe Total 2005 % Share Current Year-Ago DSR. % Chg. Calendar Year-to-Date January - October 2006 2005 Vol. % Chg.

159,586 210,249 297,555 667,390 110,624 30,479 855 20,097 18,843 9,288 75,115 15,404 5,950 189,011 475,666 24,464 20,601 2,355 22,373 69,793

164,814 194,773 253,727 613,314 110,895 29,413 1,177 20,631 19,504 9,292 72,294 16,774 6,246 173,086 459,312 25,635 18,390 2,588 23,866 70,479

13.2 17.3 24.5 55.0 9.1 2.5 0.1 1.7 1.6 0.8 6.2 1.3 0.5 15.6 39.2 2.0 1.7 0.2 1.8 5.8

14.4 17.0 22.2 53.7 9.7 2.6 0.1 1.8 1.7 0.8 6.3 1.5 0.5 15.1 40.2 2.2 1.6 0.2 2.1 6.2

0.7 12.3 22.0 13.2 3.7 7.8 -24.5 1.3 0.5 4.0 8.1 -4.5 -0.9 13.6 7.7 -0.8 16.5 -5.4 -2.5 3.0

1,787,534 2,446,359 3,438,995 7,672,888 1,271,134 389,738 11,191 242,094 228,082 99,392 851,644 164,286 87,278 2,117,507 5,462,346 254,297 197,689 28,766 267,126 747,878

1,955,486 2,649,009 3,794,815 8,399,310 1,223,812 378,608 14,490 236,993 221,366 105,420 908,439 161,562 69,732 1,887,352 5,207,774 251,276 175,221 26,397 246,508 699,402

-8.6 -7.7 -9.4 -8.6 3.9 2.9 -22.8 2.2 3.0 -5.7 -6.3 1.7 25.2 12.2 4.9 1.2 12.8 9.0 8.4 6.9

Total Light Vehicles

1,212,84 9

1,143,105

100.0

100.0

10.3

13,883,11 2

14,306,48 6

-3.0

Appendix B: Flexible Fuel Vehicles

Appendix C: List of Plant Closures

Scarborough Assembly van plant Moraine Assembly (3rd shift) Oklahoma City Assembly

Ontario Ohio Oklahoma

1993 2006 Early 2006

Van assembly Mid-size SUV assembly Mid-size trucks and SUV assembly

2,700 4,165 2,734

Lansing Craft Centre

Michigan

Mid-2006 Chevrolet SSR roadster assembly Mid-2006 Mid-size sedan assembly

398 3,600

Oshawa Car Assembly No. 1 (3rd Ontario shift) Spring Hill Manufacturing Line 1 Tennessee

March 2007 2008 2006 2006

Saturn Ion sedan and coupe assembly 5,776

Doraville Assembly Lansing Metal Center Portland Distribution Center

Georgia Michigan Oregon

Minivan assembly Metal fabricating Parts distribution

3,076 1,398 95

Saint Louis Distribution Center Pittsburgh Metal Ypsilanti Processing Center St. Catharines Engine Flint North 3800

Missouri

2006

Parts distribution Metal fabricating Parts processing Engine/Transmission parts Engines

182 613 278 1,699 2,677

Pennsylvania 2007 Michigan Ontario Michigan 2007 2008 2008