GM Inside News Forum banner

GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For Life"

12K views 59 replies 33 participants last post by  doh 
#1 ·
General Motors Corporation

October 1, 2014

Press Release:


GM Outlines Strategic Plan

MILFORD, Mich. – General Motors CEO Mary Barra and her executive leadership team outlined the company’s customer-focused strategic plan to become the most valued automotive company at a conference for investors and financial analysts today at the company’s Milford Proving Ground.

“In the nine months that this leadership team has been together, we have spent a significant amount of time setting our goals for the future of GM and developing a specific action plan,” Barra said. “Our strategic plan is a pathway to earn customers for life and create significant shareholder value in the process. Every chance to connect with a customer is an opportunity to build a stronger relationship.”

GM’s strategic plan includes several major initiatives that the company anticipates will help it achieve 9- to 10-percent margins on an EBIT-adjusted basis by early next decade.

Lead in Product and Technology: In 2015, about 27 percent of GM’s global sales volume is expected to come from products new or refreshed within 18 months. That figure is expected to rise to 38 percent in 2016 and 2017, and reach 47 percent in 2019.

During the same time frame, GM plans to execute the world’s largest automotive deployment of 4G LTE high-speed mobile broadband, introduce vehicle-to-vehicle connectivity in the 2017 Cadillac CTS and launch a highly automated driving technology currently called Super Cruise, which allows for extended periods of hands-free driving on highways.

GM has also developed an innovative Mixed Material Body Structure that uses GM-patented welding technology and a combination of steel and aluminum stampings, castings and extrusions to deliver designs that are lightweight, use 20 percent fewer parts, have class-leading torsional stiffness and exhibit superior noise and vibration characteristics.

Grow Cadillac: GM is establishing its flagship brand as a separate business unit headquartered in New York City to pursue growth opportunities in the luxury market with more focus and clarity. Cadillac expects to introduce four new vehicles in North America in 2015, including the recently announced CT6. In addition, Cadillac plans to introduce nine new models in the next five years in China, which is expected to become the world’s largest luxury car market later this decade.

Continue Growing in China: GM’s joint ventures in China are planning to invest $14 billion from 2014 through 2018 to open five new vehicle- manufacturing plants and support sales of just under 5 million vehicles annually. In the same time frame, GM expects to launch 60 new or refreshed vehicles, including nine new sport utility vehicles.

Continue Growing GM Financial: GM Financial, which has seen its earning assets grow from $8.7 billion in 2010 to $37 billion today, continues to invest to support the sale of new GM cars, trucks and crossovers around the world. GM Financial has sharply increased the number of GM customers it serves in the United States, Canada, South America and Europe. Later this year, GM Financial expects to enter the growing Chinese market.

Deliver Core Operating Efficiencies: GM’s strategy to improve relationships with suppliers, derive more global volume from fewer vehicle architectures and lower enterprise costs for material and logistics is expected to deliver significantly better variable margins on upcoming high-volume product launches, including the Opel/Vauxhall Corsa and Astra in Europe, and the Chevrolet Cruze and Malibu in North America. By 2020, the company expects that about 99 percent of global production will be on core architectures.

Mid-decade Financial Targets

During the meeting, GM also reaffirmed the company’s previously announced near-term financial targets:

In North America, the company expects to achieve EBIT-adjusted margins of 10 percent in 2016.
In Europe, the company expects to return to profitability in 2016.
In China, the company expects that its joint ventures will maintain net income margins in the 9- to 10-percent range.
In South America, the company’s core operations continue to improve as a result of recent product launches and material and logistics optimization.
GM continues to address challenges in its international operations outside of China, including brand strategy, cost structure and sourcing to return to consistent profitability.

GM intends to return excess cash flow to stockholders primarily through strong and growing dividends based on sustained improvements in the company’s underlying financial performance.
 
See less See more
#2 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

CEO Barra shows her stuff.

She has been a life-saver thus far the GM public relations. Now let's watch as she turns her attention to improving the company. There are cover stories on her in the latest editions of Time and Fortune.

She is one to watch for sure.
 
#13 · (Edited)
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

CEO Barra shows her stuff.

She has been a life-saver thus far the GM public relations. Now let's watch as she turns her attention to improving the company. There are cover stories on her in the latest editions of Time and Fortune.

She is one to watch for sure.
Caddy No1 luxury car maker in the world in a decade wow l like the sound of that, that makes good sense thats where all the money is being made at the moment. Also like the trying of new technologies out in Caddy first. Then once proven the technology filters down to the mainstream next with the higher volumes which would then be less of a recall problem, should a problem pop up in the early years.

Great to hear some really positive news, Barra seams like she has GM on the right track.
 
#5 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Whilst reliability is less of a concern for me because I have had none of the horror stories others have had; I wonder if this will allow for more reliable vehicles due to parts sharing while avoiding the terrorizing thought of badge engineering? Also, hopefully one of these 4 platforms including omega and/or a modular platform meant specifically for cadillac (omega s, regular, and + for example that can encompass CT2/3 all the way to CT6-9)
 
#6 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Whilst reliability is less of a concern for me because I have had none of the horror stories others have had; I wonder if this will allow for more reliable vehicles due to parts sharing while avoiding the terrorizing thought of badge engineering? Also, hopefully one of these 4 platforms including omega and/or a modular platform meant specifically for cadillac (omega s, regular, and + for example that can encompass CT2/3 all the way to CT6-9)
I'm pretty any RWD car Architecture is focused on Cadillac. Basically, Omega and Alpha will merge.
 
#8 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

This right here:

GM has also developed an innovative Mixed Material Body Structure that uses GM-patented welding technology and a combination of steel and aluminum stampings, castings and extrusions to deliver designs that are lightweight, use 20 percent fewer parts, have class-leading torsional stiffness and exhibit superior noise and vibration characteristics.
 
  • Like
Reactions: megeebee
#9 · (Edited)
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Does anyone know if there's a video copy of this presentation?

edit: there's a video on the site I'm going to watch and see what else I can grab from the presenation.

edit #2: is there a full video of the presentation?
 
#10 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Clearly, GM isn't afraid to spend money right now. They are in a massive restructuring and growth period right now.

Every brand is aggressively being developed. It should be no surprise that Cadillac is one of them. GM does not have a problem spending billions on Cadillac.
 
#11 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Clearly, GM isn't afraid to spend money right now. They are in a massive restructuring and growth period right now.

Every brand is aggressively being developed. It should be no surprise that Cadillac is one of them. GM does not have a problem spending billions on Cadillac.
They have no choice if they want to be a major player in the coming largest vehicle market...China.
 
#15 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

They should have mentioned Buick in their strategic plan; or do they only want the money that Buick brings in?
 
#16 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

4 Platforms will be and I'm just speculating:

1. Small to mid-sized cars/CUVs
2. Large cars/CUVs
3. Trucks and SUVs
4. All RWD cars/SUVs

I'll receive information on this in the coming weeks
 
  • Like
Reactions: jzchev28
#18 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

4 Platforms will be and I'm just speculating:

1. Small to mid-sized cars/CUVs
2. Large cars/CUVs
3. Trucks and SUVs
4. All RWD cars/SUVs

I'll receive information on this in the coming weeks
Are these going to include Cadillac?
 
#30 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

If the car platforms are as outlined, I suspect that the FWD platform would cover A-C classes (sub-compact to the smaller mid-sized) and the RWD would mostly be C and above. If so, large Epsilon cars might shift to RWD/AWD platforms, which given what we've seen in terms of say the Impala vs Zeta in terms of weight and interior space, might make sense.
 
#38 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Still not convinced that the vette is included in this list of 4 platforms, and will continue to be a "5th". To me it seems like this is more for "volume" cars.
 
#41 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Wasn't it said 99% on 4 platforms? Therefore the Vette could fall into the other 1% I would guess.
 
#47 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

This "Mixed Material Body Structure" sounds interesting.
 
#49 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

This "Mixed Material Body Structure" sounds interesting.
Whatever they did, it worked. I assume a lot of aluminum, high strength steel where needed, magnesium and probably carbon fiber in spots. The CT6 is 8 inches longer than the CTS but 24 kilos (about 50 lbs) lighter. That's extremely impressive for a PHEV of that size.
 
#48 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Excellent plan! There are many interesting details, but I am intrigued by the new platforms VSS (Vehicle Set Strategy).

On page 5 of the second segment indicates that already in 2020 will be available 2 of the 4 platforms VSS, the front-wheel (VSS-F) and truck (VSS-T). That means that this important strategy will be introduced with the next generation of the Silverado/Sierra :), planned for 2019 on the "T1XX" platform (T = Truck). We can say, then, that the "31XXn" platform the new Colorado/Canyon was the first step in the "convergence of platforms," ​​a fusion of the GMT-700 with K2XX.

The VSS-F platform (F1XX?) will be released in a similar date... Next Impala? Cruze third generation?
 
#55 ·
Re: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For Life"

Excellent plan! There are many interesting details, but I am intrigued by the new platforms VSS (Vehicle Set Strategy).

On page 5 of the second segment indicates that already in 2020 will be available 2 of the 4 platforms VSS, the front-wheel (VSS-F) and truck (VSS-T). That means that this important strategy will be introduced with the next generation of the Silverado/Sierra :), planned for 2019 on the "T1XX" platform (T = Truck). We can say, then, that the "31XXn" platform the new Colorado/Canyon was the first step in the "convergence of platforms," ​​a fusion of the GMT-700 with K2XX.

The VSS-F platform (F1XX?) will be released in a similar date... Next Impala? Cruze third generation?
I believe that was actually the latest iteration of Gamma. It combined car and crossover for GM.

Wow, really? Name changes? I'm a little shocked....they print money...or are you referring to platform name changes as in K2XX?
I think there was talk about returning the Silverado to the C/K.
 
#52 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Talk about FOCUS , wow ! Probably thousands of pages of preliminary work condensed into a brief point by point succinct summary ,,,,looking good , Lady , the company appears to be in good hands ! !!
 
#54 ·
Re: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For Life"

The chart is very interesting. It appears that GM is working on a truly modular platform, with mix and match modules/pieces to create vastly different cars in length, height, and width (the hard engineering feat). Much like Volkswagen's MQB platform.

 
#58 ·
Re: BREAKING: GM Outlines Strategic Plan; Wants 4 Platforms By 2025, "Customers For L

Presentation showed some good strategies (going to 4 Platforms) and focus on Customer Wants, prioritizing Cruz and Malibu and growing Cadillac in China but totally missed it on Revenue and which brands were to provide it.

Also illustrated that GMC has no new product in the pipeline which is alarming.

GM states that both the Luxury and SUV markets are "Growth Segments" yet does not provide any new product for GMC outside of the "new" Canyon.

GMC can provide up to 1.8 Million in Global sales by 2025 if given the proper product and marketed globally, not the 600 million GM presented, yes that is triple the number GM displayed.

First GMC should be getting a minimum of 8 new global products and could get up to 12 new global vehicles.
Secondly GMC must be introduced into Europe as a complimentary brand to Opel and Vauxhall dealers
Third GMC must be introduced into Chian as a complimentary brand to Buick Dealers

A World Class automaker would have made these moves 3 to 5 years ago and most certainly would be implementing them between now and 2025 since GMC delivers the most Sales Revenue at lowest cost.

GM's management still displays a disturbing lack of understanding of how modern global markets work and how to maximize return from them. Why focus on Chevy who has many strong competitors in "price war" segments when GMC has only Jeep as a global competitor in high revenue/high margin growth segments?

Why does GM insist on filling up the Sales Revenue pool with a kinked garden hose when they have 3 fire hoses available to them?

A World Class automaker would have been drinking from those 3 fire hoses of high margin sales revenue for at least 3 years.

The most expensive part of introducing a brand into a new market is the distribution system of brick and mortar dealers along with the logistical requirements. GM can use the existing Buick, Opel and Vauxhall distribution/logistical systems to introduce GMC into China and Europe essentially FREE OF CHARGE. Then turn on the revenue stream and collect the money.

Had GM done this post BK they would have been sitting on at least 100% more cash. And now they still do not even have plans to do it in the next 10 years!!

Introducing GMC into China and Europe will also increase sales of Buick, Opel and Vauxhall brand vehicles due to higher foot traffic in the dealerships which ultimately reduces overall marketing costs for all brands since strong selling brands generate buzz on social media.

Additionally GMC vehicles would be sold as Holden vehicles in Australia giving Holden more product to sell into "new segments".

When is GM's management going to "get it", or is it time to find a new management team that does?
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top