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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.
 

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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.
 

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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)
 

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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.
 

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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.
 
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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?
 

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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.
 

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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.
 

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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.
 

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

Wasn't Opel suppose to return to profitability in 2015............now 2016..(that's a delay).
 

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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?
 

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

Wasn't Opel suppose to return to profitability in 2015............now 2016..(that's a delay).
LOL Opel are a basket case, that l would love to see GM turn-around into a profit making concern.
 

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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?
 

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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.

Absolutely !


No one does all the work themselves, and Mrs. Barra is also CEO at a fairly good time for GM (though it doesn't always seem that way) GM is out of Bankruptcy and large Government Equity stakes. It has a fairly clean balance sheet and a cost structure that allows for everything that's now being done, something no GM CEO has been able to say for decades.

All that being said, I'm pleased and proud to see the actions being taken for the LONG TERM HEALTH AND COMPETITIVENESS of the Corporation. I hope Mrs. B is around for a good long while.
 

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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
In the presentation its:
1. FWD Cars
2. RWD Cars
3. Trucks
4. CUV's (they don't specify RWD or FWD)
 
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