Emerging Markets - Johannesburg International Motor Show

Report
Tim Lee
President, GM International Operations
World’s Emerging Markets
“The equalizer of
missed opportunities”
2
The New GM
¶
Leaner company with a healthy balance
sheet and a global focus
¶
Six consecutive quarters of profitability
¶
Sales and market share are increasing
¶
Growing focus on South Africa
3
Seismic Shift in Industry Demand
¶
U.S., Western Europe and Japan drove
growth in the industry’s first century
¶
Emerging markets are driving growth today
¶
In 2010, China set a new global industry
sales record
4
GM International Operations
5
Emerging Markets
¶
Nominal GDP per capita below $10,00015,000
¶
Growing personal incomes and rising
middles classes
¶
New middle classes are driving demand for
four-wheel transportation
¶
Huge opportunity as customers and as a
source of talent
6
Prosperity & Vehicle Sales
Nominal GDP Per Capita
8
New Vehicle Sales Per 1,000 People
2000
Country
2010
1
14
2
14
47
3
1
3
35
7
39
9
49
Vehicle Ownership
Country
Car Parc /
1,000 People
U.S.
812
Australia
717
China
57
Egypt
32
India
18
Japan
548
Korea
347
Russia
265
S. Africa
171
8
Emerging Market Challenges
¶
Government policies that can change quickly
¶
Varying legal systems
¶
Popular unrest and rapidly changing political
situations
¶
Varying industry standards
¶
Macroeconomics risks
¶
Poor infrastructure
¶
Fluctuating petroleum prices
9
No “Silver Bullet”
Top Models/Segments (H1 2011)
Indonesia
MPV-B (Small MPV)
Thailand
Pickup-D (Medium Pickup)
S. Korea
Car-D (Midsize)
Toyota Avanza
Isuzu TFR
Hyundai Sonata
Russia
Car-C (Compact)
Lada Nova
China
Car-C (Compact)
Hyundai Elantra
S. Africa
Car-B (Small)
VW Polo Vivo
India
Car-A (Mini)
Suzuki Alto
0%
10%
20%
30%
Share of Industry
40%
50% 10
Number 1 in BRIC Markets
12.2% Market Share
11
GM is Not Sitting Still
¶
Signed an agreement with SAIC to co-develop a new electric
vehicle architecture, opened the GM China Advanced Technical
Center and broke ground for a new manufacturing plant
¶
Moving forward on a joint venture with SAIC and began
production of a locally developed diesel engine at our new
powertrain plant
¶
Opened a new engine plant and began production of the nextgeneration Chevrolet Colorado pickup
¶
Announced we will reopen our vehicle manufacturing plant
¶
Expanding production capacity to about 350,000 units annually
¶
Preparing to begin commercial production at our new engine
plant
12
Focus on Key Segments
Compact
Car-C
Excelle
Cruze
Volt
Baojun 630
7.7M
Small
Car-B
New Sail
Aveo/Sonic
5.4M
Mini
Car-A
Spark/Spark Lite
Spark/Beat
4.0M
13
Product Development Strategy
GLOBAL ARCHITECTURES
1
Chevrolet Cruze
Chevrolet Sonic
Chevrolet Spark
14
Product Development Strategy
GLOBAL ARCHITECTURES
1
Chevrolet Cruze
Chevrolet Sonic
Chevrolet Spark
REGIONAL SOLUTIONS
2
Chevrolet Tavera
Chevrolet Niva
Chevrolet Utility
15
Product Development Strategy
GLOBAL ARCHITECTURES
1
Chevrolet Cruze
Chevrolet Sonic
Chevrolet Spark
REGIONAL SOLUTIONS
2
Chevrolet Tavera
Chevrolet Niva
Chevrolet Utility
PARTNER COLLABORATION
3
Chevrolet New Sail
16
GMIO Brands
Global
International
Regional
17
Electrification
Chevrolet Volt
Buick LaCrosse with eAssist
18
South Africa
¶
Key component of GM’s emerging market
strategy
¶
GM began doing business in South Africa
nearly a century ago
¶
Sold nearly 55,000 vehicles in 2010, for
market share of over 11%
¶
Sold more than 50,600 vehicles in the first
nine months of 2011
19
New Beginning in Africa
¶
GM North Africa
¶
GM Sub-Saharan Africa
¶
Will enable GM to leverage resources across
Africa and GMIO’s growing footprint
¶
Launching important new assembly programs
– Includes Libya, Algeria, Tunisia, Morocco, Western
Sahara and Mauritania
– Integrated into Egypt operations
– Includes central and southern Africa
– Integrated into South Africa operations
20
Growing Investment in South Africa
New Chevrolet Utility
21
Growing Investment in South Africa
Chevrolet Sonic Hatch
22
Growing Investment in South Africa
Vehicle Conversion &
Distribution Center
Parts Distribution Center
23
Growing Investment in South Africa
¶
Invested over R 100 million in scholarship
programs, supporting 2,000 students
annually
¶
Partnered with Nelson Mandela Metropolitan
University to develop key skills
¶
GM South Africa Foundation is contributing
to education and housing improvements
24
South Africa Faces Competition
¶
Competing with other BRICS and other
emerging markets globally
¶
South Africa accounts for less than 1% of
global industry sales
25
Becoming Globally Competitive
Establish clear and stable rules for investment and expansion
26
Becoming Globally Competitive
Develop high-volume, world-class suppliers
27
Becoming Globally Competitive
Establish free and preferential trade agreements
28
Becoming Globally Competitive
No. of Days Lost Due to Strikes -2009
1.6
1.4
1.2
Millions
1
0.8
0.6
0.4
0.2
0
South Africa
20.6 million days
were lost in South
Africa in 2010
Spain
USA
Poland
Russia
Source: European Industrial Relations Observatory
Address the labour issue
29
Becoming Globally Competitive
Increase investment in education
30
Becoming Globally Competitive
Develop stable, cost-competitive infrastructure
31
Factors Influencing Investment
¶
Market and volume opportunities
Competitiveness of sourcing
¶ Future prospects
¶
32
Automotive Industry Has Changed
¶
Emerging markets are the driving force and
have created new opportunities
¶
Winners will be companies that capitalize on
opportunities and offer quality products and
new technology
33
South Africa Can Become a Leader
34
THANK YOU
35

similar documents