General Motors Corp. (NYSE: GM), is the world's largest automaker and has been the annual global industry sales leader for 76 years. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.
GM is primarily engaged in the worldwide development, production, and marketing of automobiles, consisting of cars and trucks. GM develops, manufactures, and markets vehicles worldwide through four automotive regions: GM North America (GMNA), GM Europe (GME), GM Latin America/Africa/Mid-East (GMLAAM), and GM Asia Pacific (GMAP).
The growth and profitability priorities for the future are straightforward:
•Continue to execute the North America turnaround plan;
•Grow aggressively in emerging markets;
•Continue development and implementation of GM’s advanced propulsion strategy; •Improve business results
The Chevrolet Volt has been named the most influential product in the General Motors repositioning strategy by top executives because of its direct correlation to all the core business initiatives through some form. As Chevrolet has repositioned itself in North America they have adopted an initiative of going from “Gas Friendly to Gas Free”, through the development of their advance propulsion strategy. The advanced propulsion strategy is comprised of technologies such as: Ethanol85, active fuel management, hybrid technology, fuel cell technology, and electric (plug-in) technology. Therefore, by tying the business objectives of the North America turnaround plan and the advanced propulsion strategy together, the Volt was designed. The use of tying these two strategies together on other vehicles for Chevrolet has been very successful (hybrids & E-85 capable models), but it must be taken into consideration that no other vehicle on the market has the Chevrolet Volt’s technological prowess. In order to achieve competitive positioning globally and improved business Chevrolet realizes it is necessary to satisfy needs unknown in the automotive industry. General Motors CEO, Rick Wagoner, noted 100 years ago there were three competing engine technologies: electricity, steam, and gasoline. Therefore, going forward it is highly unlikely that oil alone is going to supply all of the world’s rapidly growing automotive energy requirements; hence, by producing the Volt, Chevrolet will be competitively aligned globally which will give way to improved business results for the future.
Strategic Business Unit (SBU) Background
Chevrolet “An American Revolution”
Chevrolet being a subsidiary of General Motors has very similar objectives and goals, but there are some key items to note. The Chevrolet Company has produced many new models over the years. They have become a leader in the industry under General Motors. With newer models of sports cars, full size pickup trucks, sedans, and coupes the company has grown with immense popularity. The company proved the need of American manufacturers to diversify their products. They improved using new styles such as disc brakes, headlamps, engine size, faster, as well as more reliable cars. Some of their greatest accomplishments were the Camaro, Corvette, Caprice, Chevelle, and the Impala. Chevrolet has always been a competitor; they produce in order to satisfy the needs of the consumer by offering great automobiles at low prices. Chevrolet, created in 1908, has always had an emphasis on the customer. With the development of emerging markets and new movements (The Green Movement) Chevrolet has had to adopt strategies within the scope of their business to compete. Currently, consumer needs being satisfied has been developed primarily by the innovative approaches of offering alternative fuel sources at the SBU. Clearly consumers need high quality vehicles at competitive prices, a Chevrolet core objective, but by offering alternative sources...