Worldwide AutomotiveSlide 2
Presenter: Industry - Frank GM - Raymond Toyota - Angela Volvo - LillianSlide 3
Global Auto SalesSlide 4
The developing significance of Emerging MarketSlide 5
Surprise! Shock! Fast EXPANSION The generation for the following 20 years will be more than what â s been made for the whole 110 years of car industry history BRIC, particularly China has been, and will be the significant main thrust of worldwide Auto industry Expected to supplant Japan as the second biggest business sectorSlide 6
Continuous Growth in Global Automobile Industry Global Vehicle Ownership Estimation: Over 1 billion units in 2010Slide 7
Major Countries Click hereSlide 8
Major ManufacturesSlide 9
Major Manufacturer working MarginSlide 10
Excess creation limit NASlide 11
Industry Characteristics - Major Cost Labor & Pension plans**** N.A organizations confront a lot of annuity expense - approx. $1500 per vehicle Jap organizations have none benefits taken a toll Material Hundreds of pieces bought from suppliers Automakers ingest just piece of the increment in material expense AdvertisingSlide 12
Cost Breakdown - Typical AmericanSlide 13
Cost Breakdown - Typical AmericanSlide 14
Highly delicate to total monetary execution U.S economy will back off from 3.2% GDP development to around 2% The impact of popularity based triumph in congress?? Industry Characteristics - Sales cycleSlide 16
Industry qualities - M/An, Alliance Technology, R/D Market infiltration Global collaborationSlide 17
Industry attributes - M/An, Alliance GM:- - 200 Garage Car creators in ahead of schedule days - SAAB, Daewoo - Isuzu, Subaru, Suzuki Ford - Jaguar, Land Rover, Volvo, - Mazda Benz - Chrysler Renault - NissanSlide 18
Porter â s Five ForcesSlide 19
Threat of New contestants Emergence of outside contenders with Capital, innovation and administration aptitudes Chinese & India brands inside they could call their own nationsSlide 20
Suppliers Had little power before Been hit hard in Major Automaker expense cutting Globalization merger and obtaining Increased strain b/w suppliers and AutomakersSlide 21
Supply Chain (customary) Tier 3 Raw Material Tier 2 Small parts Tier 1 segments OEM Design& amassSlide 22
Supply Chain (developing) Raw Material Supplier Global StandardizedâSystems Manufacturer Component expert Systems IntegratorSlide 23
Merger of suppliersSlide 24
Outsourcing generation - to more suppliers Percent of Car Value outsourcedSlide 25
Suppliers - Cost cutting prerequisite of AutomakersSlide 26
Suppler (cont) A noteworthy suppler Collins & Aikman stopped conveyance to Ford on Oct 19 th Caused provisional close down of one of the greatest sequential construction system of Ford Foreseeable -Slide 27
One of the biggest supplier Dana has been added to the rundown (April 2006)Slide 28
Substitutes Public transportation on the ascentSlide 29
Rivalry Fierce rivalry High rivalry cost Low return Historically maintain a strategic distance from cost rivalry More and More cost rivalrySlide 30
Buyers Historically, the automaker force went unchallenged As the business sector soak, more choices made accessible, purchasers have critical measure of forceSlide 31
Increasing Models and Decreasing Scale, US MarketSlide 32
Regulation Regulations Emission standard*** Safety standardSlide 33
European Union : âACEA agreementâ looks for 25% diminishment in vehicle CO 2 discharges levels by 2008 (from 1995 levels). Assention may be expanded an extra 10% by 2012. Japan : requires 23% decrease in vehicle CO 2 emanations by 2010 (from 1995 levels). Australia : deliberate duty to enhance mileage by 18% by 2010. Canada : has proposed a 25% change in efficiency by 2010. China : Introduced new mileage norms in 2004; weight-based gauges to be presented in 2 stages (2005 and 2008). California : CARB endorsed GHG outflows diminishments for vehicles, right now under authoritative audit. New York : Clean Cars Bill proposing to take after California benchmarks is as of now in advisory group. A few other NE states have shown they will take after CAâs lead.Slide 34
Comparison of Fuel Economy and GHG Emission Standards An and Sauer, 2004 for the Pew Center on Global Climate ChangeSlide 35
Aggregate Value Exposure Estimated expense per vehicle to meet âmost likelyâ carbon imperative situations in US, EU and Japan 8 25x distinction in Value Exposure over the businessSlide 36
Management Capacity for Low-Carbon Technologies Measure of OEMsâ ability to create and popularize primary low-carbon advances: cross breeds, diesels & power devices 9Slide 37
moreover Political issues Trade obstruction tax Energy emergency OPEC Political & Natural reasons Technology improvement Hybrid, Fuel cells, Hydrogen, Electronic, ethanol. And so forth System highlight & outlineSlide 38
Key achievement components Pension store administration How well the organization digest what â s been eaten Supplier relationship administration Risk administration (i.e. trade introduction hazard, ware cost danger) outline, promoting of new models New innovation advancementSlide 39
General Motors Symbol: GM Exchange(s): NYSE Industry: Consumer Products (Automotive)Slide 40
As of Nov 7, 2006 Dividends Per Share : 1.00 Number of Shares: 565,610,000Slide 41
1 Year ChartSlide 42
30% expansion inside of 1 yearSlide 43
5 Year ChartSlide 44
20% abatement inside of 5 yearsSlide 45
Company Profile The world\'s biggest automaker has been the worldwide business deals pioneer for a long time utilizes around 327,000 individuals around the globe makes its autos and trucks in 33 nations Engaged in car generation and showcasing and financing and protection operations biggest working vicinity in North AmericaSlide 46
EXECUTIVE PROFILES G. Richard Wagoner, Jr. GM Chairman & Chief Executive Officer Since June 2000 BA in financial matters from Duke University MBA from Harvard Business School Frederick (Fritz) A. Henderson GM Vice Chairman and Chief Financial Officer BBA from the University of Michigan MBA from Harvard Business School Robert A. Lutz GM Vice Chairman, Global Product Development BA underway administration from the University of California-Berkeley MBA from the University of California-Berkeley level of specialist of administration from Kettering UniversitySlide 47
Buick Cadillac Chevrolet Fleet & Commercial Operations Holden Vauxhall GMC GM Daewoo HUMMER Pontiac Saturn Saab Opel BrandsSlide 48
GMAC Financial Services A money organization offers car, private and business financing and protectionSlide 49
GM\'s OnStar auxiliary a supplier of vehicle wellbeing, security and data administrations use (GPS) satellite and cell innovation to connect the vehicle and driver to the OnStar Center guides offer constant, customized help 24 hours a day, 365 days a yearSlide 50
Global Partnerships greater part shareholder in GM Daewoo Auto & Technology Co. of South Korea Product, powertrain and obtaining joint efforts with Suzuki Motor Corp. what\'s more, Isuzu Motors Ltd. of Japan Advanced innovation joint efforts with DaimlerChrysler AG BMW AG of Germany Toyota Motor Corp. of Japan Vehicle assembling endeavors with Toyota Suzuki Shanghai Automotive Industry Corp. of China AVTOVAZ of Russia Renault SA of FranceSlide 51
Market GM\'s biggest national business sector is the United States, trailed by China, Canada, the United Kingdom and GermanySlide 52
GM in 2005 One of the most troublesome years Reported loss of $10.6 BSlide 54
The span of GMâs 2005 misfortune, the majority of which identified with its North American operationsSlide 55
Global Sales GM had its second most noteworthy deals volume internationally a year ago, with almost 9.2 million vehicles sold More than a large portion of GMâs deals all around came OUTSIDE the United States In the Asia Pacific area , GM sold more than 1 million vehicles GM turned into the No. 1 auto maker in China alongside their joint endeavor accomplice Significant development in Latin America, Africa and the Middle East locale , with deals up 20 percent Eighth sequential year of offers initiative in district, for example, Chile, Ecuador, Venezuela, South Africa and the Middle East GM Europe cut its misfortunes essentiallySlide 56
GM Production ScheduleSlide 57
GM Car DeliveriesSlide 58
Challenges and Weakness Due to: enormous legacy expense trouble powerlessness to change basic expenses in accordance with falling income worldwide overcapacity falling costs rising medicinal services costs higher fuel costs diminishing interest for a portion of the most elevated benefit item worldwide rivalry global trade rates tend to help Japanese and Korean importsSlide 59
Rising retiree human services expenses and Other Post Employment Benefit (OPEB) reserve shortage incited the organization to institute an expansive rebuilding arrangement For each dynamic GM representative in the United States a year ago, GM bolstered 3.2 retirees and surviving life partners GMâs social insurance bill in 2005 = 5.3BSlide 60
Financial Burden - Health care and annuities. * Number of U.S. retirees and surviving companions who got annuity arrangement advantages ** Est. number of U.S. workers, wards, retirees and surviving life partners secured by medical advantagesSlide 61
Delphi Chapter 11 procedures Delphi is a car goes separate ways spun-off from GM recorded a charge of $5.5 billion ($3.6 billion after expense) as an appraisal of unexpected exposures identifying with the Chapter 11 documenting of Delphi Corporation GM getting just a bit of sums owed by Delphi to GM commitments in overabundance of sums perceived by
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