GENERAL MOTORS

INTRODUCTION

VIEW OF THE AUTO MARKET REALITIES IN KEY GEOGRAPHIES

North America

European Union

Russia
 INDIAN AUTO INDUSTRY

The Indian auto industry is one of the largest in the world.

The industry accounts for 7.1 per cent of the country's Gross Domestic
Product (GDP).

Growth of Indian Automobile

Industry in march 2016
Overall automobile sector grew by 1.91 %
Private vehicle sector grew by 5.24 %
Commercial vehicle sector grew by 16.97 %
Two wheelers sector grew by 0.97 %
GLOBAL AUTO SALES
 GENERAL MOTORS INDIA

General Motors India Private Limited is a partnership between GM and SAIC

that is engaged in the automobile business in India. GM has 93% stake in this
partnership and the remaining 7% is held by SAIC.

It is the 5th largest automobile manufacturing company in India after Maruti

Suzuki, Hyundai, Tata Motors and Mahindra.

After 21 years of operations in India, General Motors announced that it will

stop selling cars in India by the end of 2017, as a part of its global
restructuring actions.
 ISSUES IN MARKETING

Home Country: USA

Increase in oil and gas prices

Rapid decline in mortgage sector

Inconsistency in product and brand strategy

Host Countries

India:
Frequent change in corporate structure

Frequent launch and withdrawal of models

China:
Slowdown of the Chinese economy

Lack of control on joint ventures in China

Copyrights, patents, trademark issues

Russia:

Economic recessions in Russia

Fall in oil prices hit Russian economy badly

South America:

Political unrest and corruption in Brazil

Economic crisis in Venezuela

Low access to credit in Brazil

 ISSUES IN FINANCE

The following are the reasons for which created financial issues for General
Motors:

Trouble in cutting down costs

Incentives offered by GM

Sale of GMAC

Mishandling of the deal with Fiat

Global financial slowdown

 FINANCIAL ANALYSIS

General Motors Income Statement ($ in '000)

PARTICULARS 2016 2015 2014 2013

Earnings Before Interest and Tax 12256000 8161000 4649000 7792000

Interest Expenses 572000 443000 403000 334000

Earnings Before Tax 11684000 7718000 4246000 7458000

Income Tax Expenses 2416000 -1897000 228000 2097000

Earnings After Tax 9268000 9615000 4018000 5361000
 FINANCIAL ANALYSIS

General Motors Stock Prices

2016 2015

PARTICULARS High Low High Low

First Quarter $ 33.54 $ 26.69 $ 38.99 $ 32.36

Second Quarter $ 33.41 $ 27.34 $ 37.45 $ 33.06

Third Quarter $ 32.87 $ 27.52 $ 33.61 $ 24.62

Fourth Quarter $ 37.74 $ 30.21 $ 36.88 $ 29.98

 PERSONNEL MANAGEMENT- HR ISSUES
IN INTERNATIONALIZATION

A number of factors that affect HRM in global markets are identified

Culture

Economic System

Political System

Legal Framework
 ISSUES/ CHALLENGES FACED BY THE
HR DURING INTERNATIONALIZATION

Social, political, and economic differences affect an organizations ability to

implement consistent HR practices around the world
Overcoming local resistance to change
Addressing differing perceptions from the corporate and local levels regarding
HRs value, credibility, and importance.
 OPERATIONAL ISSUES IN
EXPANSION TO GLOBAL MARKET
 POLITICAL-LEGAL ISSUES:

Different regions have their political and legal structures, which are in one way or the
other turn to be a challenge to the General Motors' interests.

1.Crafting legislation to protect the interest of domestic players.

2.General Motors is closely associated with Americans , other regions which oppose
Americans' agendas in the world platform find it not necessary to consume American
products.

INDIAN CONTEXT
1.Dealers not happy with the compensation.
2.Plans by dealers of GM India to drag the company to court. Class Action Suit.
3.The dealer advisory body said in the email to FADA that it has no trust in GM.
CURRENT PERFORMANCE

Performance in America

Performance in China

Performance in India

Performance in Brazil

Performance in Europe

GMs Invest Plan and Commitment

 KEY CONSTRAINT IN
INTERNATIONALIZATION

Increasing economic power of emerging economies

Changing consumer behavior in terms of lifestyle, travel and work

Investment and growth potential are shifting

Technological specification

Slowdown in growth of developed countries

Rising inequalities

Demographic trends
 ETHICAL ISSUE INVOLVED IN HOST
COUNTRY OPERATIONS
Safety vs cost

Environmental issue

Staff issues

Employee benefits

Working condition
 FUTURE OF GENERAL MOTORS

Delivering transportation solution that are safer

Putting the customer at the center of everything they do

Responsive to the needs of customer

THANK
YOU
PRESENTED BY
Aniket Khasnobis
Bhavana Saraswat
Prakhar Singh Sengar
Rishi Rajeev Jain
Shobhit Tripathi
Suhaib Ahmed
Tulika Vinod