Focus on fuel-inefficient vehicles

• GM majorly focused on large models rather than light

commercial vehicles

• Pickups and SUVs accounted for 43% of total light vehicle unit
sales in the US in 2006. GM had 53% of its unit sales in this
segment prior to the recession

• US drivers are accustomed to gasoline prices that are low in

comparison with other developed countries
Top seven auto makers in the US, ranked by average fuel efficiency of product lineup, 2006
Rising gasoline retail prices in the US and the UK, 1978–2012
 Employee benefits
• GM found in recent years that its legacy employee benefits (specifically,
pensions and healthcare) were becoming costly to maintain.

• Pension schemes offered during the past 20 years or so are generally

defined contribution, earlier schemes were often defined benefit

• As of 2004, GM was paying the healthcare costs of an estimated 1

million retired employees. Such costs were high and unpredictable