[A004]From Old GM to the New One.doc

From Old GM to the New One（从老通用到新通用）编号：A004队长：张华队员：郭柳红 刘情 李晗菲 王雪娇日期：2010-11-179Abstract （摘要）We can see that although the General Motors Company has lost a lot of marketing shares after its bankruptcy, it has much superiority over other motor companies. We have analyzed the elements, such as history, culture, bankruptcy causes and restructuring measures and the U.S. governments policy about it. And we have used Michael Porters Five Forces Model to analyze GMs corporate strategy formulation. Then we conclude that the new GM has a clear future.（我们可以看到，尽管在通用汽车公司破产后它丢掉了很多市场份额，但它仍然有许多的优势。我们小组分析了，通用内部的元素包括历史、文化、破产原因、重组措施和美国政府对它的一些政策。并且我们用波特五力分析模型分析了通用的企业战略，由此我们得出通用还是有明朗的未来的。）Key words （关键词）Bankruptcy Superiority FutureIntroduction（引言）On June 1st, the GM (General Motors Company), which was the leader of the U.S. motor market, filed for bankruptcy protection. We looked into its failure through history, culture and its superiority over Toyota and researched the new GM and we have drawn a conclusion.Review of relevant literature（相关文献综述）The General Motors Company is a United States-based automaker, which has a long history yet without a distinctive culture. From the very beginning, GM has been closely tied to the capital operation. As a highly ownership dispersed corporation, the old GM showed a fast-food culture, which is quite common in America. Compared with Toyota, GM was good at capital expansion. But it had been faced with years of losses and shrinking market shares. At last, it announced its bankruptcy on June 1th. For its history and culture, it had a deep influence on the United States. With the help of U.S. government, it got rid of some debts and non-performing assets. Then a new GM was established on July 10th, 2009. It is composed of the best business assets from General Motors Corporation and has a new corporate structure, a healthier balance sheet and a new company aims, namely all consumer-oriented. GM China Group and its business are absorbed into new GM and they become an important part of it. GM would continue to maintain its market in China continuously by introducing new products of high quality strong momentum. We can see that the new GM has made some improvement, but there are still some questions in the market. However, the GM has a great advantage on innovation, which unquestionably speed the consummation of GMs global arrangement. The Main Text(正文) General Motors Companys history(通用公司的历史)The General Motors Company is a United States-based automaker and one of the worlds largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 205,000 people in every major region of the world and operates business in some 157 countries. General Motors commitment is to design, build and sell the worlds best vehicles. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. General Motors biggest success internationally is its performance in China, where GMs sales rose 66.9% in 2009, selling 1,830,000 vehicles and accounting for 13.4% of the market. So far in 2010, sales for General Motors in China have actually outpaced sales in its home market of the United States, followed by those of Brazil, Germany, the United Kingdom, Canada, and Italy. GMs OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on July 10, 2009. 3 The Inner culture(内部文化) Being Closely Tied with Capital Operation(与资本运作密切联系)GM has a long history yet without a distinctive culture because of their typical American operating mode. From the very beginning, GM has been closely tied to the capital operation. William Crapo Durant, the founder of GM, integrated 20 motor corporations through slip-off to establish his company. After two years, Durant was forced to quit. Nevertheless, he founded a new motor corporation and then held 54.5% shares of GM. Because of this unique entrepreneurship, GM can not be regarded as a motor corporation but a capital enterprise. What the leaders concern about is how to take advantage of its resource, instead of how to make perfect cars. Even the introducing of high-tech is mainly to advertise so that the stuck will mark up. And this concern is typical in America. The Fast-food Culture（快餐式文化）As a highly ownership dispersed corporation, GM shows a fast-food culture, which is quite common in America. It has a strict standard for improvement, promotion, etc, and the benefit must appear in a short time. If a project is very helpful for GMs future but the benefit would show out after several years, it will be rejected at once. 5These concepts have influenced nearly every leader, and results in a special “automotive capital culture”. Before the financial crisis, GM owns more than 30 brands, extending all over the world. This situation leaded an appreciable variation of its culture, style, and technique. This blindfold expansion calls for huge sum and the difficulty to control overall. Once the recession emerged, this corporation based on capital operation is inevitably became the most unlucky victim. Comparison with Toyota (与丰田的比较)The reason to compare GM with Toyota is that their operating mode is quite different and they were exposed to totally distinct cultural backgrounds.When Kiichiro Toyoda founded Toyota, he came to America to study advanced knowledge. However he only learned the technique and the methods of production but not the operating mode. Toyota has been emphasizing on the golden mean as well as low-key spirit. The main goal of Toyota is to promote the competitive edge of its products. They also research and invest cautiously. So compared with GM, Toyota is weak in capital expansion. Toyotas leading brands is much less than GMs until the recession. And this is one of the reasons why Toyota could survive in the financial crisis. The Causes of GMs Bankruptcy（导致通用破产的原因）The global financial crisis caused by U.S. subprime mortgage crisis brought the deep recession of U.S. economy, which was called the last straw to break the GM. But before the global financial, GM had faced with years of losses and shrinking market shares.By the end of 2005, GMs debt had reached 172.81 billion dollars. The U.S. market shares had dropped to 22.1% from 25.6%. 1There were some factors leading to GMs bankruptcy.First, GM had too many brands, which leaded to an enormous but inefficient marketing network. At last, it caused the difficulty and inefficiency of management. Second, GM would not give up high fuel consumption car. This was contrary to the high price of petroleum and U.S. policy in environmental protection. And it resulted in losing competitive strength.Third, GMs labor wage was far higher than competitors in Japan and South Korea, which caused a high cost.Fourth, GM paid too much attention to financial services. In 2005, GM issued about 190 billion dollars for finance lending. In 2006, General Motors Acceptance Corporation earned 2.9 billion dollars, covering the enormous losses in automotive sector.2Fifth, GM had a much higher level of welfare than its opponents. Because of this, the price of each car produced by GM was higher than average. The Governments Policy（政府政策） Cash for Clunkers（以旧车换资金）When the hearsay that GM was about to file for bankruptcy protection was widely reported or speculated, the White House was pressing the congressmen into carry out a plan-Cash for Clunkers-so that furnish funds between $4 billion and $6 billion to exchange for less than 2 million old motor vehicles. President Obama also expressed his support to the plan, which intended to provide vouchers for those who handed over the high fuel consumption motor vehicles and then would buy energy-efficient new motor vehicles. He announced that the funds of this plan were from the $ 787-billion-economic stimulus plan, but the specific resource of the funds was not decided yet. Preferential tax policy（享受税收优惠政策）It is reported that GM had accepted the American government emergency aid according to the Troubled Asset Relief Program before the government held 61% shares of GM. In light of connected policies of American government, GM do not need to pay tax if the profits is less than $5 billion, and the valid period is 20 years.According to the report of Le Monde on August 19th, with the stimulus of Cash for Clunkers, the reformed GM has a significant increase in production. GM claimed in the second quarter the output increased by 20%, and that it was planned to increase to 60 thousand motor vehicles in the third and the fourth quarters. Whats more, 535 thousand of saloon cars and trucks will be developed, which rises by 35%, meanwhile 1350 fired staff will be reappointed. New GM（新通用） The General Situation（概况）After getting rid of some debts and non-performing assets, a new GM were established on July 10th, 2009. New GM is composed of the best business assets from General Motors Corporation. New GM has a new corporate structure, a healthier balance sheet and a new company aims, namely all consumer-oriented.GM China Group and its business are absorbed into new GM and they become an important part of it.The new owners of GM include The US Treasury Department which holds its 60.8 shares, US Auto Workers Union that holds its 17.5 shares, the Canadian government which possesses 11.7 shares and the original which shares by 10%.In the American market, it reserves four core brand, as well as the most extensive and most powerful sales network. In the Chevrolet, Cadillac, Buick and GMC four core brand new products under the squad, every product will adopt the most advanced design idea, and benefit consumers and environment of advanced technology. More competitive cost structure, more healthy balance sheet, more abundant liquidity make new GM continue to invest in new products, the core technology and the future development. Strong geographic global business layout includes all GM operations in the institution. It aims to establish a new company culture, namely paying more attention to the consumer and product.GM has four core brands - Chevrolet, Cadillac, Buick and GMC. By the end of 2010, the four core brand will have 34 models. The new General Motors has clear vision, namely to design, manufacture and sell the best car in global world.GM would continue to maintain its market in China continuously by introducing new products of high quality strong momentum. Not long ago, GM has just released in China market Chevrolet Cruze inclusion and JunYue Buick brand-new generation. In addition, GM also actively develops more forward-looking technology for energy conservation, including prospective internal-combustion engine, biofuels, fuel cell and hybrid technology.The new General Motors have healthier balance sheet, more competitive cost structure and more abundant liquidity. Therefore, the new General Motors can compete with native American and international opponents, and continued in the continuous development of the global automotive market actively expand business.In the United States, a new General Motors will become a more streamlined company. By the end of 2010, new GM would operate 34 assembly factories, powertrain and stamping factories. By 2011, these factories capacity utilization is expected to reach 100%. Under the condition of ensuring developing world-class products and technology, General Motors Corporation in the United States will have a total employees from the end of 2008 of 91,000 decreases to the end of this years name, thus making staff 64,000 scales according to market changes make rapid response.With the new GM establishment of the company, the companys stress would be to change the corporate culture and decisively reaction attitudinal shift for the new business operation mode, and always with consumers as the core oriented. Michael Porters Five Forces Model(波特五力分析模型)First, the competition of existing competitors within the industry declineUnder the American economic slowdown and that of Western Europe, the automotive industry there has been significant shrinkage. However, in September this year, Ford, in the U.S. market, sales rose 46%, Chrysler Group sales rose 61%, GM total sales grew by 11%. In the first nine months of this year, Ford sales ranked first, second Chevrolet, Toyota third. The Chinese government has taken economic stimulus plan, elevation all the way to Chinas auto sales. In October 2010 Shanghai GM sales volume of monthly sales of 68,505 RMB won another championship. Those show that how fierce the global automotive market competition is.Second, the threat of potential competitors in emerging marketsChina has a rapid development of automobile. In the first half of 2009, Chinas total vehicle has sales of 6.1 million，far overdoes the United States. Because of the huge and lucrative Chinese market, many large multinational companies enter the Chinese market, and eager to catch up with the expansion by decreasing the price for competitiveness. For instance, the Ford significantly increased the intensity of the operations in the Chinese market since 2005. Fox, a very competitive car in Europe and America, had a lowest price-$12.8 million, so sales increased rapidly. Third, the threat of substitutes As the environmental problems become more and more serious, the stander of the car is higher. Global automotive industry is faced with the biggest challenge to develop environmentally friendly vehicles, with attractive style as well as suitable price. Fourth, the buyers bargaining power Faced with the diversified global automotive brands, consumers have a great number of options. This makes each brand with a various group of purchasers and more competitors. The buyers have the ability to achieve backward integration, while the sellers can not be able to enjoy the forward integration. That is a potential