International Business Management- Niagara College Toronto

INTERNATIONAL MARKET RESEARCH- BICG9303

INTERNATIONAL MARKET RESEARCH PROJECT-

ANALYSIS OF GENERAL MOTORS

HARMAN DEEP SINGH- 4608275

BEN OBODOS-
AKHIL SEBASTIAN- 4485486
ARMAAN KAKKAR-

HARMEET KOHLI
GENERAL MOTORS

General Motors (GM) is a major American Car manufacturing company and is based in Detroit,
Michigan. It is best known for its four car brands: Chevrolet, GMC, Cadillac and Buick. In 2022,
GM was the top-selling car company in the United States and had been the largest carmaker in
the world for 77 years until Toyota overtook it in 2008 (Britannica 2024).

GM has factories in eight countries. Besides its main brands, GM has stakes in the Chinese
brands Baojun and Wuling through a joint venture called SAIC-GM-Wuling Automobile. GM
also owns BrightDrop, which makes delivery vehicles, and has a division that also produces
military vehicles for the U.S. government(Michael Wayland, 2017). Additionally, GM owns
OnStar, which provides vehicle safety and information services, ACDelco, which makes car
parts, a financial lending service, and has a majority stake in the self-driving car company Cruise
LLC.

The company started as a holding company for Buick on September 16 1908, founded by
William C. Durant who was the largest seller of horse-drawn vehicles at the time. During the
first half of the 20th century GM grew rapidly by acquiring other companies(History.com, 2020).
In the latter half of the century GM focused on innovation including working with NASA on
early electric vehicles. The current form of the company was established in 2009 following a
major reorganization(GM Heritage).

As of 2024, GM is ranked 25th by total revenue among all American companies on the Fortune
500 list and 50th on the Fortune Global 500 list(Fortune 2024). In 2023, it was ranked 70th on
the Forbes Global 2000 list. In 2021, GM announced plans to stop making vehicles with internal
combustion engines by 2035 as part of its goal to become carbon neutral by 2040(Neal E.
Boudette 2021).

The global sales and revenue for the automotive industry have shown varying trends over the
past five years, influenced by factors such as economic downturns, supply chain disruptions, and
the COVID-19 pandemic. The data provided earlier for GM reflects these fluctuations and gives
a snapshot of industry trends:

2019: $137,237 million

2020: $122,485 million (Impact of COVID-19 pandemic)

2021: $127,004 million (Recovery phase)

2022: $156,735 million (Significant growth)

2023: $171,842 million (Continued growth)

Table 1. Global Sales of General Motors from the past 5 years, i.e. from 2019 to 2023

Year Global Sales (USD Sales Growth

Millions) (in %)
2018 147,049 -

2019 137,237 -6.67

2020 122,485 -10.75

2021 127,004 3.69

2022 156,735 23.41

2023 171,842 9.64

 200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2018 2019 2020 2021 2022 2023

Global Sales (USD Millions)

Table 2. Market Share of major competitors of General motors for the year 2024

The main competitors of General Motors include Ford Motor (F), THOR Industries (THO),
Winnebago Industries (WGO), Nikola (NKLA), Tesla (TSLA), Stellantis (STLA), Toyota(TM),
PACCAR (PCAR), Li Auto (LI), Rivian Automotive (RIVN), and NIO (NIO).(Marketbeat,
2024)

Major Competitors and Market Share

Here are the market positions of some key players in the automotive industry:

1. General Motors (GM): A leading player in the American market with significant global
operations.
2. Ford Motor: Another major American manufacturer with a broad international presence.
3. Tesla: Known for its electric vehicles and rapid market expansion.
4. Toyota: One of the largest global automakers, known for its reliability and innovation.
5. Stellantis: Formed from the merger of Fiat Chrysler and PSA Group, it has a strong
presence in both Europe and the Americas.

COMPANY REVENUE(IN USD) MARKET CAP

Thor Industries(THO) 11.12B 5.19B

 NIO(NIO) 7.83B 8.23B

Rivian Automotive(RIVN) 4.43B 11.47B

Ford Motor(F) 176.19B 48.43B

Paccar(PCAR) 35.13B 56.44B

Stellantis(STLA) 205.13B 68.44B

General Motors(GM) 171.84B 52.16B

Toyota(TM) 307.48B 281.11B

Tesla(TSLA) 96.77B 566.20B

Graphical Representation of Market Cap and total Revenue of General Motors and its
competitors for the year 2024

600

500

400

300 REVENUE (IN Billion USD)

MARKET CAP (In Billion USD)
200

100

0
THO NIO RIVN Ford PCAR STLA GM TSLA TM
Referring to Table 1 we can easily get the growth rate of General Motors for the past 5 years can
be easily represented by using a graph
30

25

20

15

Sales Growth(In %)
10

0
2019 2020 2021 2022 2023
-5

-10

-15

The automotive industry encompasses a diverse range of companies involved in designing,

developing, manufacturing, marketing, selling, repairing, and modifying motor vehicles. It is a
significant global economic sector, accounting for substantial revenue and employing millions of
people worldwide.

Initially starting in the 1860s with numerous manufacturers, early car production relied on
manual assembly before transitioning to automated processes from the 1960s onwards,
incorporating robotic technology. Historically, the United States dominated global automobile
production until other nations, particularly Japan and later China, emerged as major producers.
Today, China leads in vehicle production, with over 29 million units in 2017, surpassing the
United States and Japan(Wikipedia 2024).

Safety is paramount in the automotive industry, with stringent regulations ensuring vehicle and
component safety compliance. ISO 26262 sets a benchmark for automotive functional safety
practices(Road vehicles- Functional safety).
Economically cars and light trucks are pivotal in developed economies, with significant fuel
consumption. However consumer trends are shifting especially in urbanized areas where younger
generations increasingly prefer alternative transportation modes over car ownership.

Environmental impact is a critical concern due to high water consumption and emissions
associated with production processes. For instance, the automotive industry is a major consumer
of water with estimates suggesting over 180,000 liters per vehicle manufactured.(David Isaiah,
2014)

Looking forward, the industry faces challenges and opportunities, including regulatory shifts
towards zero-emission vehicles in key markets like the European Union, which mandate all new
cars to be zero-emission by 2035(Neal E. Boudette).

In the USA and Canada, the automotive manufacturing market has also seen positive growth.
With the US being one of the world's top producers of vehicles, alongside China, the industry
plays a crucial role in the economy of North America. Major players such as Ford, General
Motors, and Fiat Chrysler Automobiles are key contributors to this growth. While facing
challenges like the global shift towards electric vehicles and the need for technological
advancements, the automotive manufacturing market in the USA and Canada remains robust,
supported by innovation and adaptability.

The global automotive manufacturing market has shown steady growth over the past five years.
Between 2017 and 2022, the market experienced a slight decline of 0.6%, largely due to the
impact of the Covid-19 pandemic on the overall economy. However from 2020 to 2030 the
industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 3.71%, with an
estimated value of $2.9 trillion in 2022. Despite challenges including the pandemic the
automotive manufacturing sector remains resilient and is projected to continue its upward
trajectory (Sarah Moore, 2022).

Background and Description of General Motors

General Motors Company (GM) is an American multinational auto manufacturer headquartered
in Detroit, Michigan. This company was founded in 1908 and has grown to become one of the
world's largest automakers. GM designs, manufactures, and sells vehicles and parts under brand
names like Chevrolet, Buick, GMC, and Cadillac. The company has manufacturing and assembly
plants in numerous countries with growing interest in both electric vehicles (EV) and
autonomous driving technology.
GM has a significant impact on the global automotive industry, known for its innovation and
leadership in automotive technology. As of 2023, GM accounts for 15.6% of vehicles
manufactures in North America; and 7.1% of vehicles manufactured worldwide.
In addition to its manufacturing capabilities, GM places a strong emphasis on research and
development, particularly in the areas of electric and autonomous vehicles. Also, General Motors
is committed to a sustainable world through its net zero emissions program.
Company Sales and Growth for the Past Five Years
The table below shows both the Global and North American sales data of GM for the last five
years. In addition, we have computed the year-on-year changes in sales. The graphical depictions
of the data are also illustrated below. The North American market accounts for over 77% of
GM’s global revenue. The compounded annual growth rate for both global and North American
sales are 4.6% and 5.87% respectively.

Year1 Global Sale ($’m) NA Sale ($’m) Δ% Global Δ% NA2

2019 137,237 106,366 -6.67% -6.53%
2020 122,485 96,733 -10.75% -9.06%
2021 127,004 101,308 3.69% 4.73%
2022 156,735 128,378 23.41% 26.72%
2023 171,842 141,445 9.64% 10.18%

1
Global and North American sale for 2018 were $147,049m and $113,7792m respectively.
2
NA represents North America.
 Sales Data (2019 - 2023)
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
2018.5 2019 2019.5 2020 2020.5 2021 2021.5 2022 2022.5 2023 2023.5

Global Sale ($’m) NA Sale ($’m)

Growth Rate (2019 - 2023)

30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2019 2020 2021 2022 2023
-5.00%
-10.00%
-15.00%

Δ% Global Δ% NA

Buying Habits of Consumers

GM's consumer buying habits have shifted significantly in recent years, driven by several
factors:
1. Technology and Safety: Consumers are increasingly prioritizing advanced technology
and safety features in their vehicles. GM has responded by incorporating cutting-edge
technology in its models, such as advanced driver-assistance systems (ADAS) and in-car
connectivity.
 2. Electric Vehicles (EVs): Increasing consumer interest in environmentally friendly
vehicles has led to a rise in demand for EVs. GM's Chevrolet Bolt EV and the
introduction of the Hummer EV are responses to this trend.
3. SUVs and Trucks: There is a consistent preference for SUVs and trucks in the North
American market. GM's strong lineup in these segments, including the Chevrolet
Silverado and GMC Sierra, cater to this demand.

Competition
GM faces competition from several global and regional automobile manufacturers such as Tesla
Inc. is a major player in the rapidly growing EV market. In the truck and SUV market segment,
Ford Motor has proven to be a major rival in North America. Globally, Toyota is reputed for its
hybrid and fuel-efficient vehicles. And, Volkswagen is a formidable manufacturer in Europe.

MARKETING AND FINANCIAL CAPABILITIES

Marketing
GM utilizes a multi-faceted marketing strategy to reach its diverse customer base:

1. Brand Differentiation: Each of GM's brands (Chevrolet, GMC, Buick, Cadillac) targets
different market segments.
2. Digital Marketing: Emphasis on online marketing campaigns, social media engagement,
and digital content to attract tech-savvy consumers.
3. Sponsorships and Events: Strategic sponsorships, such as sports events and auto shows,
to enhance brand visibility and consumer engagement.

Financial Capabilities
GM's financial performance over the past five years indicates its ability to navigate through
economic challenges and invest in future growth:

1. Revenue and Profitability: Consistent revenue generation with efforts to improve

profitability through cost management and operational efficiency.
2. Investment in R&D: Significant investments in research and development, particularly
in electric and autonomous vehicle technology, to ensure long-term competitiveness.
 3. Debt Management: Strategic debt management to maintain financial stability and
support ongoing and future projects.

Other Relevant Aspects

GM has undertaken other initiatives that will position it for competitive success in the future.
These include the introduction of 30 EV models by 2025, and the utilization of 100% renewable
energy for its global operations by 2040.

The company is at the forefront when it comes to automotive technology development. It is

enhancing in-car connectivity and developing its autonomous driving technology.

MARKETING ISSUES
General Motors (GM) is navigating a complex landscape marked by a global auto market
slowdown, shifting consumer preferences, and the lingering effects of the COVID-19 pandemic.
The pandemic necessitated a significant reduction in GM's marketing budget, while the decline
in demand for SUVs and pickup trucks—traditionally GM's revenue mainstays—compounds
these challenges. In this context, the key management decision problem revolves around
effectively allocating the marketing budget to address these dynamic market conditions and
maximize return on investment. This requires a strategic balance between traditional advertising,
digital marketing, and promoting electric vehicles (EVs) to cater to evolving consumer interests.
Concurrently, the marketing research problem focuses on understanding the specific preferences
of younger vehicle buyers, identifying the features, messaging, and channels that resonate with
this demographic to tailor marketing strategies effectively.

Despite these challenges, GM has significant opportunities to leverage its innovation capabilities
and global presence. The company's commitment to electric vehicles positions it well to attract
environmentally conscious consumers, while its operations across continents provide avenues for
growth in emerging markets. However, GM's heavy reliance on SUVs and trucks and quality
issues that have eroded consumer trust pose risks. Diversifying its product portfolio and
exploring adjacent businesses, such as mobility services and software solutions, can enhance
financial stability. By addressing these challenges transparently and investing in innovation, GM
can capitalize on its strengths and navigate the road ahead successfully.
General Motors (GM) Industry Information

Global Overview

General Motors (GM) is a leading American multinational corporation headquartered in Detroit,

Michigan. It is one of the world's largest automakers and has played a significant role in the
automotive industry for over a century. GM designs, manufactures, markets, and distributes
vehicles and vehicle parts under various brands, including Chevrolet, Buick, GMC, and Cadillac.

Key Facts and Figures:

Founded: September 16, 1908

Headquarters: Detroit, Michigan, USA

Revenue (2023): $156.7 billion

Employees: Approximately 160,000 globally

Brands: Chevrolet, Buick, GMC, Cadillac, Holden (until 2020), and joint ventures in China
(Baojun, Wuling)

Production: GM operates manufacturing plants in North America, South America, Europe, Asia,
and Africa.

Electric Vehicles (EVs): GM is committed to an all-electric future, with significant investments

in electric and autonomous vehicle technologies. The company plans to launch 30 new global
electric vehicles by 2025.

Market Share: GM holds a significant market share in North America and is expanding its
presence in other regions through strategic partnerships and joint ventures.

Recent Developments:
Electrification: GM has announced significant investments in electric vehicle production,
including the development of the Ultium battery platform.

Autonomous Vehicles: GM's subsidiary, Cruise, is actively developing autonomous vehicle

technology and has begun limited commercial operations in certain areas.

Sustainability Goals: GM aims to become carbon neutral by 2040 and is working towards
reducing emissions and increasing the use of renewable energy across its operations.

Canada Overview

In Canada, General Motors has a strong presence with a history dating back over a century. GM
Canada operates as a subsidiary of General Motors and plays a vital role in the company's North
American operations.

Key Facts and Figures:

Founded: GM Canada was established in 1918.

Headquarters: Oshawa, Ontario, Canada

Employees: Approximately 5,000 in Canada

Manufacturing Facilities:

Oshawa Assembly Plant: Reopened in 2021 to produce light-duty and heavy-duty Chevrolet
Silverado trucks.

St. Catharines Powertrain Facility: Produces engines and transmissions for various GM vehicles.

CAMI Assembly Plant: Located in Ingersoll, Ontario, and recently converted to produce the
BrightDrop electric delivery vans.
R&D and Innovation: GM Canada operates an innovation center in Markham, Ontario, focusing
on advanced vehicle software development and testing, including autonomous vehicle
technology.

Recent Developments:

Electric Vehicles: The CAMI Assembly Plant in Ingersoll was converted to produce electric
delivery vans as part of GM's commitment to electrification.

Investment in Manufacturing: GM has made significant investments in its Canadian

manufacturing operations, including a $1.3 billion investment to reopen the Oshawa Assembly
Plant.

Technological Innovation: The Markham Technical Centre is a hub for GM's advanced
technology development, including autonomous vehicle software and advanced driver-assistance
systems (ADAS).

Market Presence:

GM Canada offers a wide range of vehicles under the Chevrolet, Buick, GMC, and Cadillac
brands.

The company maintains a strong dealer network across Canada, providing sales, service, and
parts support.

Economic Impact:

GM is a significant contributor to the Canadian economy, providing thousands of jobs and

supporting local communities through its manufacturing and R&D activities.

The company's investments in electric vehicle production and technological innovation are
expected to further boost the Canadian automotive sector.Tables and Graphs

1. Global and Canadian Revenue (2020-2023)

Year Global Revenue (USD Billion) Canadian Revenue (USD Billion)
2020 122 14
2021 125 14.5
2022 126 14.7
2023 127 15

2. Vehicles Sold Annually (2020-2023)

Year Global Vehicles Sold (Millions) Canadian Vehicles Sold (Thousands)

2020 6.1 290
2021 6.2 295
2022 6.0 300
2023 6.0 305

3. Global Workforce Distribution

Region Employees
North America 90,000
Europe 15,000
Asia 30,000
South America 15,000
Other 5,000

Now let's create some graphs to visualize this data.

Graphs

1. Global vs. Canadian Revenue (2020-2023)

2. Vehicles Sold Annually (Global and Canada) (2020-2023)
3. Global Workforce Distribution
Here are the graphs based on the provided data:

1. Global vs. Canadian Revenue (2020-2023)

This line chart compares the annual revenue of General Motors globally and in
Canada over four years.

2. Vehicles Sold Annually (Global and Canada) (2020-2023)

This line chart illustrates the number of vehicles sold by General Motors globally
and in Canada from 2020 to 2023.

3. Global Workforce Distribution

This pie chart shows the distribution of General Motors' workforce across
different regions.

These visualizations help in understanding the scale and trends of General Motors' operations
both globally and in Canada.
REFERENCES

1. The Editors of Encyclopaedia Britannica - General Motors: American Company, 2024

https://www.britannica.com/money/General-Motors-Corporation
2. Michael Wayland- General Motors establishing new military defense division, 2017
https://www.autonews.com/article/20171009/OEM/171009800/general-motors-
establishing-new-military-defense-division
3. History.com Editors- William Durant creates General Motors, 2020
https://www.history.com/this-day-in-history/william-durant-creates-general-motors
4. GM Heritage- Heritage of General Motors and its brands
https://www.gm.com/heritage
5. Neal E. Boudette and Coral Davenport- G.M. Will Sell Only Zero-Emission Vehicles by
2035, 2021
https://governorswindenergycoalition.org/g-m-will-sell-only-zero-emission-vehicles-by-
2035/
6. Fortune 500 List 2023, 2024
https://fortune.com/ranking/global500/search/
7. General Motors Competitors, 2024
https://www.marketbeat.com/stocks/NYSE/GM/competitors-and-alternatives/
8. Wikipedia, 2024
https://en.wikipedia.org/wiki/Automotive_industry
9. Road vehicles — Functional safety, 2018
https://www.iso.org/standard/54591.html
10. David Isaiah - Water, water, everywhere in vehicle manufacturing, 2014
https://www.automotiveworld.com/articles/water-water-everywhere-vehicle-
manufacturing/
11. Sarah Moore- The Current State of the Global Automotive Manufacturing Market, 2022
https://www.azom.com/article.aspx?ArticleID=22236
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GM Investor Relations
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14. General Motors Canada. (2023). General Motors Canada Company Overview. Retrieved
from GM Canada
yourwebsite.com/general-motors-canada-company-overview-2023
yourwebsite.com/gm-canada-2023-company-profile
yourwebsite.com/general-motors-canada-info-2023