History

Founded in 1908 by William Durant 1911- First auto company on NYSE 1927- took lead of industry from Ford

History

1970’s-80’s Japanese gain market share

GM tried to match smaller car styles

2000’s- Recalls and Strikes

History

2008: 5,000 salary layoffs 2009: Government Bailout

Ch. 11 Bankruptcy Motors Liquidation Company

2010: Rebirth, Restructure, Largest IPO

History

Present Day: Daniel Akerson trying to get GM back on top.

Greener Cars

Repay debt to the government

Government Interaction

Federal Emissions Requirements Catalytic Converter

Safety

Technological Advances

Plastic/Carbon Fiber Body

OnStar

Hybrid Cars

Hydrogen Powered cars

Industry Analysis

Barriers to Entry High

Intensity of Rivalry Extremely High

Bargaining Power of Suppliers Low

Bargaining Power of Buyers Low

Substitutes Low

Strengths

High Liquidity Allows them to be more flexible in the future

Strong Global Presence

New found focus on individual brands Increased product quality

Weaknesses

Customer Loyalty Stigma from the bailout “Holes in the line up”

Declining US Market Share

United Auto Workers

Opportunities

Emerging Markets South America China

Alternative Fuel Technologies

Threats

Volatile Economy

Raw Material Prices

Oil Prices

Geographic and Economic Factors

Headquarters in Detroit, Michigan

Became global in the 1920s

Now manufacture vehicles in 31 countries

Four Geographically-Based Segments

GM North America

GM Europe

GM South America

GM International Operations

Total Production Volume for Each Geographic Segment

GM (Year Ended Dec. 31, 2010) Combined GM and "Old" GM (Year Ended Dec. 31, 2009)

Old GM (Year Ended Dec. 31, 2008)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Total Production Volume

GMNA

GME

GMIO

GMSA

Worldwide

Automobile Industry Factors and Business Cycle

Retail sales fluctuate according to season

Production varies each month

Changeovers occur often throughout the year New market entries, vehicle models

Business cycle depends on general economic conditions and consumer spending

The Economy

The recession had a negative effect on GM’s United States Market

It also affected factors that determine consumers’ buying decisions E.g. Price, quality, available options, style,

safety, reliability, fuel economy, and functionality

Financial Help From Congress

G.M. Files for Bankruptcy

Dramatic Turnaround

Profitability Helped by Tax Breaks Carried Over Through Bankruptcy

A Slow Recovery

G.M. Announces Still Losing Money in November 2009

2010 Turnaround -Rebuilding Operations-Increased Sales- full-year profit was equal to $2.89 a share

Focus Factors

Competitive Cost Structure

Cleaner Balance Sheet

Stronger Liquidity

2011 Earnings: 1st Quarter

G.M. made $3.2 Billion in the 1st Quarter-5th Consecutive Profitable Quarter

Sales

Competitors and Their Reactions to Economic Conditions

In 2005 the auto industry rides a new trend of “Employee Prices for Everyone”.

2005 is a tough year for both companies. “Way Forward” GM looks for government help GM emerges from bankrupcy Ford rebuilds workforce

GM in the Future

Now-Akerson Keeping the Ship Upright

5 Years-New CEO-Hydrogen Cars-Emerging Markets

20+ Years-Hydrogen Gas Stations-Staying Within Their Limits