General Motors Group 29

Strategy

• USD $50 mil investment

• Marketing/Automated Production – GM South Africa

Rationale

• Global vision “to become the most valued automotive company while simultaneously supporting sustainability and value throughout the business”

• Expected return – USD $44 mil Y1 and total USD $133 mil Y1-Y3

Economic Outlook

• Automotive sector is the largest in SA.

• Positive economic outlook for sub Saharan Africa

• Market spending foretasted to reach 8.2bn Rand's ($626M).

• State incentives such as Automotive Production and Development Plan (APDP).

• Balance between union agreements and automation.

Marketing

· Target Market

· How to reach the South African consumer

· Radio and Television advertisements

Automation

• Refurbishment and general investment of automotive technologies

• Automation industry is expected to improve across the country

• Advantages of automation

  1. Competitive advantage
  2. Lessons reliance on manual labor
  3. Reduces risk of unsatisfied employees

Financials

• Cash Flows are 133.104 Million total 44.368Million for the next three years

• NPV is &69,786,867.2 and IRR is 71%

• EPS increases 18 cents total over the three years of this plan

Thank You

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Group 29
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