- Leading automotive retailer
- Highly diverse product line
- 13 billion in cash assets
- Strong presence throughout the world market
- Strong ability to adapt to change
- Automotive industry increasing
- The evaluation of the SWOT lead to various strategies including enhancing production or creating a more fuel efficient vehicle line
- The most supported choice included capitalizing on the Chinese market.
- As GM stands, expanding manufacturing in Chinese markets was more attractive than creating a new fuel efficient product line
- Crossovers are the fastest growing units for GM across the board
- The GMC and Chevrolet Truck brands have seen a decline in recent years
- Sedan sales have remained on a steady growth rate in recent years.
Increase Manufacturing in China by 20%
- Increase manufacturing in China from 5 million units per year to 6 million units per year.
- Construct a 6 million square foot manufacturing plant in Changsha.
- Hire 3,000 local employees to man the operation and maintenance of the factory.
Total Cost: $20 Billion
- Construction of Factory
- Training of Employees
- Initial start up Costs
- Increase revenues from 7% to 10%
- Increase net profit by 7%
- Increased Manufacturing in China 20%
- Equity financing would consist of selling almost 600 million shares of stock.
- Debt financing is the more attractive form of financial support.
- Approximately 42%