General Motors

Turnaround Story
Submitted by Group 3:
Arman Farooqui B-16
Abhinav Kumar Giri B-94
Abtabh Ahmed B-6
Abha Bhardwaj B-3
Sheetal Yadav B-70
Simran Pathak B-76
Aaditi Verma B-1
 Introduction
General Motors Company (GM) is an American automotive multinational corporation headquartered in
Detroit, Michigan, United States
Founded by William C. on September 16, 1908
Largest American automobile manufacturer and one of the world's largest automobile manufacturers
GM had a 50% market share in the United States and was the world's largest automaker from 1931 through
2007
As of 2021, General Motors is ranked number 22 on the Fortune 500 rankings of the largest United States
corporations by total revenue
General Motors manufactures vehicles in several countries its four core
automobile brands are:
Chevrolet
Buick
GMC
Cadillac
Annual worldwide sales volume is more than 10 million vehicle
 History
Early history Global expansion

General Motors Company was founded in By 1929 General Motors had surpassed the
1908 Ford Motor Company to become the
GM introduced the electric self-starter leading American passenger car
commercially in its 1912 Cadillac, and this manufacturer
invention soon made the hand crank By 1941 it was making 44 percent of all the
obsolete cars in the United States and had become
The Chevrolet auto company and Delco one of the largest industrial corporations
Products joined GM in 1918 in the world.
GM reorganized the collection of business By the early 21st century GM had equity
units into a single enterprise consisting of shares in a number of car companies,
five main automotive divisions—Cadillac, including Fiat, Isuzu, Fuji Heavy Industries
Buick, Pontiac, Oldsmobile, and Chevrolet
 History

TARP, Chapter 11, and recovery

General Motors filed for a reorganization on June 8, 2009.

On July 10, 2009, the original General Motors sold assets and some subsidiaries to an entirely new

company, including the trademark "General Motors"

Liabilities were left with the original GM, renamed Motors Liquidation Company, freeing the companies

of many liabilities and resulting in a new GM

Also in 2009, General Motors of Canada Limited was not part of the General Motors Chapter 11

bankruptcy, the company shed several brands, closing Saturn, Pontiac, and Hummer

In 2010, the reorganized GM made an initial public offering that was one of the world's top five largest

IPOs to date, and returned to profitability later that year

Organization Structure
 Management Philosophy
Vision Statement: General Motors’ corporate vision is “to become the world’s most valued automotive
company".
1. There two main components of General Motors’ vision statement:
World (global market)
Most valued company

General Motors Company’s Mission Statement:

General Motors’ corporate mission is “to earn customers for life by building brands that inspire passion and
loyalty through not only breakthrough technologies but also by serving and improving the communities in
which we live and work around the world.”
The following are the components or features of General Motors’ mission statement:
Earn customers for life
Building brands that inspire passion and loyalty
Breakthrough technologies
Serving and improving communities in which we live and work around the world
 Why General Motors failed?
01 Failure to innovate 05 GM offered heavy discounts
thereby training its customer
base to always expect discounts
Inability to adapt to changing
02 market 06 Strained relations between
consumers and dealers

Stringent contracts and inflexible When sales went down, many

03 work rules with United Auto
07 costs stayed fairly constant
Workers union. leading to losses

Many competing models & Incredible competition from

04 brands with little product 08 overseas car makers
differentiation, causing confusion
among customers

09
Negligence on the part of the manufacturer resulting in driver
deaths has greatly impaired the GM brand name in the public eye.
 Strategy of successful turnaround
01 General Motors took the top spot on the 2009 store closing list in May 2009 when it announced
that it was closing more than 2,600 of its retail outlets in an effort to keep itself out of bankruptcy
court.

02 The restructuring plan submitted by General Motors Corp to the U.S. Treasury Department. The
automaker needs up to $30 billion in taxpayer funding to survive, including a $7.5 billion credit
line.

03 General Motors’ generic competitive strategy is cost leadership

04 General Motors’ Intensive Growth Strategies

1. Market Penetration (Primary)

2. Product Development (Secondary)

3. Market Development (Supporting)

4. Diversification (Supporting)
 Leadership through the Ages

Alfred P. Sloan Jr Charles E. Wilson Harlow Curtice James M. Roche

Thomas A. Murphy John F. Smith

G. Richard Wagoner Daniel Akerson Mary Barra
 What's the current status?
Global Scenario
Despite the pandemic, GM books a $6.4 billion
profit in 2020, ups profit-sharing payouts, but it
faces a global semiconductor shortage that CEO
could cost $2 billion in lost profits. Mary Barra
The automaker expects pre-tax profits to total (15 Jan 2014–)
$10 to $11 billion in 2021 despite lingering
effects of the microchip shortage on vehicle
production.
Market Capitalization Number of employees
Indian Scenario
$ 71.613 B 1,55,000 (December 2020)
CEO of Indian Branch: Sanjiv Gupta (1 Sep 2017–
2020)
Headquaters: Halol (Gujarat)
In 2020, It was the 5th largest automobile
Revenue Subsidiaries
manufacturing company in India after Maruti
Suzuki, Hyundai, Tata Motors and Mahindra. 2,248.5 crores USD (2020) Chevrolet, GMC, Cadillac,
Opel, ACDelco, Onstar etc.
Market Valuation is nearly $140 billion
 [ Back in 2020 ]
General Motors India Plant has Shut Down From
25th Dec 2020
General Motors had already stopped selling cars in
India earlier, but their plant in Pune was operational
for exports which lasted till dec 2020.
The carmaker had sent a lay-off notice to all 1419
workers over an email, and a copy of the same was
provided to the secretary and president of the
General Motors Employees Union.

Future Plans
GM’s 10(+) Future EV Models had an “EV Day” in Warren, Michigan,
with a 2-hour event was one of information overload - March 9,
2020
General Motors and Shell Offer Renewable Energy Solutions to U.S.
Homeowners, EV Owners and Suppliers
General Motors halts production of Chevy Bolt EV as it expands
battery recall
GM Will Boost EV and AV Investments to $35 Billion Through 2025
Thank You!