Case Study 2 ben novak, Joshua hartle, Julian Stinson, Kaleb Shannon, Kenneth Woodward


  • Robust technological capabilities enhances new product development (MarketLine, 2016)
  • Reliable and efficient Supply chain management (Herbert, 2015)
  • Known for safe and reliable vehicles (General Motors Company, 2017)


  • Frequent product recalls distress brand image (MarketLine, 2016)
  • Recall on 30 million vehicles due to faulty ignition switches (Peters, 2017)
  • Limited market penetration in China, India, etc. Heavy reliance on sales within the United States (Peters, 2017)


  • Expansion into the market for electric vehicles (General Motors Company, 2017)
  • Poised to benefit from the growing demand for hybrid electric and alternate fuel vehicles (MarketLine, 2016)
  • Positive growth in areas such as India and Southeast Asia (Stumer, 2017)


  • Intense Competition, ie Tesla, Ford, Toyota, Honda (Peters, 2017)
  • Automotive industry may have reached its full potential and possibly decline in the near future (Schepp, 2016)
  • GM is currently under investigation regarding the faulty ignition switch for over a decade (Beeach, 2014)

Improvement Through Market Penetration

  • Demand Shifters: "Electric vehicle sales are higher than they have ever been before" (Bhuiyan, 2016)
  • By the year 2022 a lower end EV will sell for the same price as that of a traditional gasoline engine and by the year 2040, EV's will account for a large portion of automotive sales in the United States (Bajpai, 2016)
  • The success of launching EV's into the automotive market based off economical choice rather than a "going green revolution" (Shaffer, 2016)
  • Elon Musk offering unlimited mileage warranty for select Tesla models (Pruitt, 2016)

Strategy for Improvement

  • Manufacture the electric Chevrolet Ignite model which has similar features to a motocycle/moped, yet includes the comforts of a regular car. The Ignite will be available for purchase or for rent at many of our rental locations will be built within the 300 largest counties in the United States.

Strategy Benefits

  • Conveniet inner-city transportation
  • Affordable/Cost-Effective Transportation
  • Environmentally Friendly
  • New Market Penetration

Strategy Costs

  • Production Costs
  • 3 Year Total - $871,856,467
  • Assets
  • 3 Year Total - $89,623,500
  • Human Capital Cost
  • 3 Year Total - $29,946,338

Key Ratio Forecasts

  • NPV: $110,000,000
  • IRR: 6.98%



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