Production Forecast: General Motors future model plans and production outlook
Date published: Tuesday, August 16, 2011
Description
‘New GM’ was launched in July 2009, created from the old GM’s strongest operations in an asset sale approved by the bankruptcy court. Although the restructuring enabled New GM to emerge as a far leaner company, without many of the legacy costs that handicapped Old GM, the company is still working to develop the right product development and production strategies to ensure it can remain competitive and profitable in the long term.
Product development
In product development terms GM’s key objectives are to:
- reduce the number of vehicle architectures by more than 50% by 2018.
- produce 90% of its output on core architectures by 2018 compared with 31% in 2010.
- halve its engine platforms.
In addition to the scale economy benefits of such measures, GM hopes to speed the notoriously slow decision- making process associated with Old GM, cut the number of programme changes and improve its responsiveness to market trends.
Production
In 2010, GM produced 8.7 million vehicles worldwide, including output by non-consolidated subsidiaries in China. GM has identified three priorities for its production strategy:
- To lower the breakeven point for GM North America (GMNA) to the bottom of the industry cycle.
- To lower its risk profile and increase flexibility. The greater commonality between vehicle platforms is also a key element in GM’s production strategy, giving its assembly plants greater flexibility to produce a wide range of models and switch between models more quickly.
- To keep pace with industry growth worldwide. In support of this target it plans to increase production capacity in the BRIC markets by 45% by 2015.
This report examines GM’s future model plans and global passenger car production in the period to 2015.
Information presented includes:
- GM future model plans by brand and model
- GM passenger car production by region, country, brand and model (2010-2015)
Table of contents:
Executive summary
Chapter 1: Product development and brand strategy
Product development
Nafta
International Operations
Europe
Brand strategy
Chapter 2: Production outlook
Forward model plans
Production forecast
