General Motors Group 20: Brielle Good, Kaikai LI, Matt Mayor, Namthu nguyen, Sharleen Lindsley

Release of Chevy Victory

  • Increase customer satisfaction through increased gas mileage
  • In 2019, increase profitability 169 million
  • Position General Motors as industry leader in hybrid crossovers

Internal Assessment

  • Strengths
  1. Proven themselves adept at technological innovation
  2. Crossovers are particularly profitable, generating a profit of approximately 180% and 70%
  • Weaknesses
  1. GM’s car sales have gone down by 9% since 2015.
  2. GM’s global presence puts it at an increased risk of violating government regulations.

External Assessment

  • Opportunities
  1. The automotive industry is expected to grow annually by 2.6% through 2022, partly due to the increase in disposable spending
  2. Demand for fuel-efficient Crossover Utility Vehicles (CUVs) are expected to account for 48.3% of revenue in 2018
  • Threats
  1. Imports from foreign car companies are expected to fulfill 73.3% of domestic demand.
  2. Total revenue is forecasted to decline around .8% over the next five years.

Why Hybrid Crossover?

  • Satisfying Bivariate SWOT
  • Voltec engines used in GM’s other hybrids, such as the Volt, with a similar chassis and body structure to GM’s current CUV offerings.
  • Midsize sales vs Cross-over sales
  • Sales projections
  • Impact on other GM products

Strategy Implementation

  • Lansing Delta Plant in Detroit, Michigan
  • Three Phases: R&D, Manufacturing, and Marketing
  • Estimated to be completed by May 2019

Financials

Initial Expenses: 355.6 Million

NPV= 169

IRR=12.23%

Conclusion

  • Increase customer and employee satisfaction
  • Increase sales and profitability
  • Create competitive advantage

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