Gm Brazil

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Discussion Questions
1. Why did GM Brazil decide to change the way they were doing business in the spare parts market?
General Motors started its business in Brazil in the year 1925 and has been growing ever since. GM had its spare parts business which has been highly profitable, but low on volume. The business of the spare parts was demand driven. The market situation worsened when liberalization attracted competitors like Toyota, Audi etc. This made GM tighten their costs further on the low profit margin, small car segment. Also the service parts business has serious strategic implications for the new car business because it can affect the level of serviceability (measured in time, speed, price, and dependability) of the car during its economic. Serviceability of the car was one of the decisive reasons for a customer to buy a car. The need to have spare parts available all the times took paramount importance. The competition and the consumer expectations in the form of economy and quality of service were the two main reasons for GM Brazil to rethink the way they did their business.

2. What are the advantages and disadvantages of AutoGIRO to the companies involved? This new system is able to handle the dealers' information on parts inventory and consumption, generating the parts requisitions to be supplied by GMB. Technical bulletins and new product information can be broadcast to all locations instantly, ensuring timely distribution of information at dealerships throughout the country. Up-to-the-minute financial information can flow among dealers, headquarters and the financing arm, GMBank, enabling forecasting efforts.

3. What are the things that must happen for AutoGIRO to succeed, and how can GM help these things to happen?
4. How should GM go about convincing dealers to adopt the new inventory system? 5. Should GM help to improve the tight cash situations at some of the dealers? Why or why not?
6. With AutoGIRO automating a great part of a parts...
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