GENERAL MOTORS

General Motors



General Motors

Company Information

General Motors Corporation (GM) is a US-based automotive company engaged in the manufacture of cars and trucks. The company is also engaged in the sale of its manufactured vehicles and related services in 140 countries. The company offers vehicles under various brands namely, Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling. The company operates in the US, China, Brazil, the UK, Canada, Russia, and Germany, among several other countries. The company's OnStar subsidiary is engaged in providing services related to vehicle safety, security, and information services. GM is headquartered at Detroit (Michigan), US.

General Motors Corp. is the world's largest vehicles manufacturer. Founded in 1908, GM has been the global automotive sales leader since 1931, having 32 manufacturing operations in 32 countries and its vehicles sold in more then 190 countries. General Motors today reported net income of 901 million in the second quarter. GM Asia Pacific earned a record $163 million in the second quarter of 2003, more than four times the $39 million earned in the year-ago quarter(Bartol, et al., 2007). Strong financial results at Shanghai GM and GM's Australia-based Holden continued to drive improved financial results along with improved equity earnings from GM's Japanese automotive alliances and lower-than-expected start-up losses at GM Daewoo Auto & Technology Co. (GM, 2003)

Products and Services

The purpose of this review is to deem the feasibility of the launch of GM Daewoo's Kalos into the Vehicles market, termed Project "redSEDAN". Kalos (See appendix 1 for detailed specifications), would come in 2 models, a 5-door and a 4-door model. Both contain state-of-the-art designs and technology which are spacious and cosy on the inside and boost fantastic performance. It is also a fuel-efficient clean car that will ensure savings on fuel and minimum harm to the environment. Available in 10 special color coating, there is sure to be one that will suit the preferences of consumer.

GM Daewoo Kalos comes with 3 year warranty or a 100,000km factory-backed warranty whichever comes first. Also included is AA 24 hour Road Service with every new car sold. So when the unexpected does happen, help would be available 24 hours a day, 365 days a year, anywhere in the country. (Daewoo, 2003)

External Environment

Economy

The economics of international trade interrelations effects on General Motors. Economic development is described as sustained growth in income per capita over a period of time, which usually involves a structural and institutional change in an economy. Per capita income is the most common measurement of development; a country must be able to increase their income in order to achieve economic development, and hence the Gross Domestic Product (GDP) can be used as an indicator of development.

International trade affects the economy such that it increases the Aggregate Demand (AD) as well as becoming a source of inputs for production. International trade based on the theory of comparative advantage will improve efficiency in allocating resources, as well as allow firms to reach economies of scale, thereby reaching ...