Crisis Presentation FINAL

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A Report on

Private
Sector :
Manufacturing
Story of General Motors in
Fighting Covid 19
Group
Members
• Arfan Ahmed
ID : 0813200
• Sihanuk Mustafa
ID : 0805797
• Adeosun Adebayo Samuel
ID: 0826969
History of General
Motors
General Motors was
established in in 1908 Four Decades Later,in 1953,
by William C.Durant GM built their second plant in
Oshawa
in United States of
America

1918

1908 1953

In Canada , General Motors


(GM) started their business in
1918 by acquiring Sam
Mclaughlin’s car manufacturing
in downtown Oshawa.
History of General
Motors
General Motors was established
in in 1908 by William C.Durant Four Decades Later,in 1953,
in United States of America GM built their second plant in
Oshawa

1918

1908 1953

In Canada , General
Motors (GM) started
their business in 1918 by
acquiring Sam
Mclaughlin’s car
manufacturing in
downtown Oshawa.
History of General
Motors
Four Decades later, in
General Motors was established
1953, GM built their
in in 1908 by William C. Durant second plant in
in United States of America Oshawa

1918

1908 1953

In Canada , General Motors


(GM) started their business in
1918 by acquiring Sam
Mclaughlin’s car manufacturing
in downtown Oshawa.
• GM Motors Oshawa is a large car
manufacturing plant located in
Oshawa, Ontario, Canada.

General • It has been a cornerstone of the


local economy, providing jobs and

Motors in supporting related industries for


decades.

Oshawa • GM Employs Approximately


4200 Hourly Workers in Oshawa

• GM Proudly Built Chevrolet


Heavy Duty Silvardo and
Chevrolet LD Duty Silverdo in its
Oshawa Manufacturing Unit
General Motors
• GM Employs Approximately 4200
Hourly Workers in Oshawa

• GM Proudly Built Chevrolet Heavy


Duty Silvardo and Chevrolet LD
Duty Silverdo in its Oshawa
Manufacturing Unit Plant.
Impact of COVID-19
on General Motors
Temporary Shutdown
• In March 2020, GM Motors Oshawa
temporarily shut down operations due to the
COVID-19 pandemic.

• This shutdown was in response to government


health guidelines and a decrease in demand for
vehicles during the early stages of the
pandemic.
• Health and Safety Measures

Impact of • When the plant reopened in November 2020, GM

COVID-19 implemented comprehensive health and safety


protocols to protect workers.
on • These included regular sanitization of workspaces,

General installation of physical barriers, enforcing social

Motors distancing, mandatory mask-wearing, and health


screenings before shifts.
Post-Pandemic Changes
in GM
2. New Vehicles Production
• GM Oshawa announced a major shift
to producing electric vehicles (EVs).

• In November 2020, GM invested $1.3


billion to retool Oshawa for Chevrolet
Silverado and GMC Sierra production,
starting in 2022.
During Covid-19
pandemic
• In March 2020, in Warren
Michigan, the face mask
production was started. But
on the Prime Minister's call,
it was shifted to Oshawa.

• Within April 2020, overall


documentation and plant
preparation activities were
completed.
On May 26, Prime
Minister declared that GM would
provide 10 million face masks
within 2021.

GM Canada shipped its first


truckload of 436,000 masks to the
Public Health Agency of Canada.
•On April 8, GM Canada
fulfilled its commitment to the
Government of Canada to
produce 10 million face masks at
cost.

•The official 10-millionth mask


was donated to the Ingenium,
Canada's Museums of Science
and Innovation in Ottawa.
General Motors
built 30,000
ventilators for
the national
stockpile for
$489.4 million.
• The Oshawa plant is being
prepared for EV production as
part of GM's plan for an all-
electric future by 2035.

• Announced a C$280 million


investment in its Oshawa plant
to boost production of next-gen
ICE full-size trucks.
Post-Pandemic The reopening and
By the end of 2021, GM
had hired over 2,000
Changes in GM retooling of the plant led
workers, and more jobs
to the creation of
are expected as
thousands of new jobs.
production scales up.
What Went Well At GM During
Covid 19 Pandemic
1. Quick Response to the Pandemic
GM swiftly shut down its operations in March
2020 to protect its employees and comply with
health regulations.

2. Production of Medical Equipment


GM partnered with Ventec Life Systems and
manufactured over 30,000 ventilators and
delivered them to hospitals
3. Manufacture of Personal Protective Equipment (PPE)

• GM retooled some of its facilities to produce 10 millions of


What went face masks, face shields, and other PPE

well at GM 4. Support for Employees

• GM offered enhanced sick leave policies and financial

during Covid support for employees affected by the pandemic.

• The company provided comprehensive health benefits,

19 pandemic including access to mental health resources to support


employees during this challenging time.
5. Strong Community Support
The company helped people in need
during the pandemic by giving food,
shelter, and support to essential services,
showing it cares about its community.

6. Financial Stability
GM's strong financial management
enabled effective navigation of the
economic downturn, maintaining
liquidity for sustaining operations and
strategic investments.
1. Production Shutdowns:
• In March 2020, GM had to temporarily shut down its manufacturing
plants.

• This resulted in a significant halt in production, leading to delays in

What Went vehicle manufacturing and delivery.

Badly
2. Supply Chain Disruptions:
• GM Canada's Q3 2021 sales plunged by 23%, primarily due to a global
semiconductor shortage.

• Supply chain disruptions caused critical component shortages, notably


semiconductors, essential for vehicle production.
3. Financial Losses:
• During the pandemic, fewer people bought
cars because they were unsure about their
finances.

• In the second quarter of 2020, GM lost

What Went
$800 million because they sold fewer cars
and made less money.

Badly 4. Project Delays:


• The pandemic caused delays in important
projects and new products.

• Launching new cars, especially electric


ones, got delayed because GM was busy
dealing with urgent problems.
What needs to be done
Liquidity and Financial Health:
• Ensured robust liquidity by securing additional
lines of credit and managing cash flows prudently.
• Prioritized essential expenditures and paused
share buybacks to preserve financial stability.

Cost Management:
• Implemented cost-cutting measures such as
reducing executive salaries, deferring capital
expenditures, and optimizing operational costs.
Innovation and Flexibility:
• Used virtual tools for design,
engineering, and collaboration to
continue product development
despite restrictions on physical
meetings.

• Accelerated digital transformation


initiatives to enhance flexibility and
efficiency.
ANY
QUESTIONS ?

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