General Motors has been pushing the limits of transportation and technology for over 100 years. Today, they are in the midst of a transportation revolution. And they have the ambition, the talent and the technology to realize the safer, better and more sustainable world they want. As an open, inclusive company, they also creating an environment where everyone feels welcomed and valued for who they are. One team, where all ideas are considered and heard, where everyone can contribute to their fullest potential, with a culture based in respect, integrity, accountability and equality. Their team brings wide-ranging perspectives and experiences to solving the complex transportation challenges of today and tomorrow.
Headquartered in Detroit, Michigan, GM is:
Over 180,000 people
Serving 5 continents
Across 23 time zones
Speaking 70 languages
At General Motors, innovation is their north star. As the first automotive company to mass-produce an affordable electric car, and the first to develop an electric starter and air bags, GM has always pushed the limits of engineering.
GM is the only company with a fully integrated solution to produce self-driving vehicles at scale.
They have committed to launch at least 20 new all-electric vehicles by 2023.
2.6 billion EV miles have been driven by drivers of five GM electrified models, including the Chevrolet Bolt EV.
The future depends on responsible stewardship of the earth, and they continually seek creative and innovative solutions for the environment. Their policies and technologies promote a cleaner planet from supply chain to manufacturing to the vehicles we put on the road. Across 14 recent new-vehicle launches, they have trimmed an average of 357 pounds per vehicle, saving 35 million gallons of gasoline and avoiding 312,000 metric tons of CO2 emissions per year. Today, their vehicle manufacturing process has the lowest environmental footprint in their history, thanks to steady progress toward achieving our 2020 operational commitments to reduce energy, carbon, water and waste intensity. They transformed how the world moved through the last century. And they're determined to do it again as they redefine mobility to serve their customers and shareholders and solve societal challenges. (Our Stories, n.d.)
Since GM has enrolled into U.S. Environmental Protection Agency (EPA) ENERGY STAR energy-reduction challenge in 2010, the company has already avoided over $237 million in energy costs and reduced 1.8 million metric tons of carbon emissions in 73 of its U.S. facilities. The company was able to cut its energy spending per vehicle produced by 5.6% in 2015 alone. GM's environmental and sustainability policies didn't stop there. The company has converted its global headquarters and an additional 122 facilities landfill-free and has committed to 100% renewable energy by 2050. It is also the only automaker in the world, which has signed ‘Climate Declaration' to help solve climate change.
With new technical innovations, the possibility of new models within the automotive industry are endless. With the evolution of technology, the possibility to manufacture a product portfolio that includes more product variety which satisfies the different needs of consumers is extremely high. Another important strength of General Motors is its innovation, as the group is a forerunner in introducing products in the market and is far ahead of its competitors. Making great strides in the technological aspect of manufacturing doesn't only allow General Motors to craft products in the benefits of its consumers but its product has set in motion a movement in which redefined the abilities of technology and its benefits to society.
General Motors should increase its capital expenditures to increase competitiveness and that is their goal. By reinvesting a higher amount of capitol back into the business GM will be able to increase their market share and stock value. By creating new models and adding in more advanced technology and fuel economy than competitors GM will be able to take customers from other brands and create new customers for life. The segments of the business that get the most capitol should be research and development. Understanding what the customer wants should be at the very core of this company.
General Motors should increase their growth by acquiring other companies. As it stands General Motors over the last few years has been putting several small suppliers out of business. These suppliers have issues fulfilling orders for General Motor and often get charged for any downtime that results from a part shortage they cause. If General Motors were to take over their existing infrastructure and use their capitol to build all of their parts in house, they would avoid having a labor lost in wasting time and could quickly identify any supply related issues that needed to be resolved.
GM should lower its debt in an effort to increase earnings and return on capital. General Motors has accrued more than enough debt after the collapse of 2008. Buying back shares should be at the forefront of the company's goals. By taking back control of the company the capitol, the company gains can be allocated toward reinvestments in the company in order to get future returns.
Some would argue GM got here mostly because the sales-killing recession came just as it was about to turn around. "This has nothing to do with the management of the company over the years," says David Cole, chairman of the Center for Automotive Research. "When you take sales down to Depression-era levels in a high-fixed-cost industry like this, it's a killer."(Carty, 2016)
GM should increase market spending. I would increase this marketing by a small amount but in the proper channels such as in the social media markets. General Motors should definitely make online marketing and international marketing increase more than print ads. Few people read print ads in today's society. Newspapers are slowly fading away and hard copy books are becoming a thing of the past. Marketing online give GM the ability to not only showcase a few products like a print ad but to also give customers all of the information about all of their vehicles, old, new and, future concepts.
In concluding, General Motors will continue to see an increase in market share and profitability if they consider these recommendations. GM will be able to expand their business while cutting cost of labor expenses. By increasing research and development spending GM will see an increase in customer satisfaction and loyalty and will gain new customers, also increasing their market share. If General Motors does not begin to look at their company with a fresh set of eyes every year then they may be well on their way back to the way things were in 2008.
...(download the rest of the essay above)