All Helena Boe, Diane Ketler, Nicole O’Keefe, Andrew Rubenstein & James Siverio

GM’s Portfolio Core Brands: Exiting Brands: Non-US Brands: James Non-US Brands: South Korean Australian European-(German) European-(British )

GM History GM founded 1908 Market share peaked in 1960 at 48.3% Took over Buick, Pontiac, Cadillac Market share peaked in 1960 at 48.3% Was leader of global auto sales for 77 years 1927 James 2010

Strategic Issue Facing GM Avoid Bankruptcy Obama Administration gave GM 60 days to restructure GM has until June 1st to turn itself around James

Current Economy Gross Domestic Product Inflation Rate (6.29)% Inflation Rate (0.62)% Unemployment Rate 8.9% Helena

Current Auto Industry US Auto industry dominated by five firms Mature Industry Consumers looking for “green” / more fuel-efficient cars James

General Motor’s Strategy Product Differentiator “A car for every purse and purpose” Worked from 1931-2008 Largest Auto Maker Foreign Entrants Toyota takes title Problem: Too many brands to manage Diane

Public Transportation Revenue Growth Rate Threats Entry Generally low High barriers for new firms Buyers High level of control over dealers Current downsizing Substitutes Effects of increased fuel prices Green movement Consumer disposable income Public Transportation Revenue Growth Rate Nicky

Threats (Continued) Suppliers Changing Consumer Trends Rivalry Three-tiered supply chain Highly intricate relationships Heavy reliance on suppliers Changing Consumer Trends Trend away from trucks & SUVs Economic downturn and rising fuel prices Rivalry Direct vs. Indirect Competition High costs of production Diversified products Nicky

June 1st: Restructure or General Motors Today Bush Plan Obama Plan: March 30th GM not viable to succeed Restructuring (60 Days): Get rid of CEO, Jobs, Plants, Brands Government Intervention: 55% Stake in GM Warranties Incentive program Diane June 1st: Restructure or

Opportunities & Outlook Change strategy from product differentiator Take advantage of… 1 Mandated restructuring to turn GM around Build a smaller, stronger GM with government’s help 2 Consumer tastes shifting towards fuel efficient cars Produce hybrids/electric cars/crossovers Ruby

Recommendations 1. Focus on core brands 2. Invest in new technology Efficient Production Hybrids Electric Cars 3. Focus on customer needs and wants 4. Be more flexible in the future to changing demands Ruby

Questions?? All