General Motors in France

Résumé du document

An overwhelming fact, ?GM cars touch French soil.' Some of the GM cars that are available in France are Buick, Cadillac, Chevrolet, and GMC. Credit needs to be given to certain individual companies who have commercialized this popular brand and thereby made them available in France. By the development of concessionaries, the new plan laid down hopes to implant General Motor's cars in France. GM-France has the opportunity and possibility of commercializing city cars. This is mainly due to the fact that France suffers from certain chronic problems such as high oil prices, heavy traffic in the big cities and badly organized city-centers (small streets and less or no parking space). The implanted cars from GM France will be from different GM manufactures which have had a strong and proven track record in terms of success in the market.

Extraits

[...] There are three French constructors: Renault, the leader, Peugeot and Citroën. Peugeot and Citroën are known under the PSA group. Nowadays, French constructors have a market share between 54% and on the French market. During the 1990's the French government tried to boost the automobile market with bonuses. It granted consumers a discount if they decided to exchange their car for a new one. This measure, called Balladurettes” or Jupettes” was popular with French households, but qualified of protectionism by the European Union. [...]

[...] Indeed, most popular vehicles are small and light, with low oil consumption. In 2006, the French automobile market decreased by to reach new cars sold. Results are worse than expected; economists planned 2.2 millions new cars sold for 2006. The last year has been morose for French constructors, especially for Renault whose sales are lower than in 2005. Concerning the PSA group, the decrease is of - for Peugeot and - for Citroën. The Market share of French constructors for 2006 is For Renault, the main reason of their poor result is the absence of a new model for 2006 and a range of cars which is starting to become old. [...]

[...] They are interdependent. Franchising enables to realise economies of scale thanks to the standardization of the supply. In exchange of the property and the assistance, the franchisee has to pay the franchisor a fee to join the structure, and royalties, generally corresponding to a part of its turnover. In terms of the organization, a franchisor can enter a foreign market by a direct deal with franchisees or can set up a master franchise. In this case, the franchisor will give to the organization the right to open outlets by itself or to develop sub franchisees in the location. [...]

[...] The French Franchising market It is also important in this report to speak about the franchising market in France, some strategy concepts can work in the country and do not equally good success in another, it depends of the culture, of the legislation etc. In 2005, franchisers in France realized a turn over evaluated around billions, meaning 13% of the global servicing and retailer turn over, placing France in the first European rank. ( In the European community more than 5000 networks exist for franchisees and employees. In 1996, we estimated the European turnover of the franchising at billion! The franchising creates jobs! These networks do not stop growing. Every year, the interrogated networks create on average 8 outlet franchisees and close two. [...]

[...] Technology potential: General Motors dedicates time and money in their R&D department(. One of General Motors' current projects is to release two Hybrid cars in China and hopefully more in the United States in the year 2007 Also thanks to the new campaign in Asia, GM has made advances in the Business strategy and technology Product: With a very large variety of vehicles from the economic and compact car (new Chevrolet Aveo), to famous sports cars (Pontiac Grand Prix or Slostice), to the big truck (Ford F150), to the saloon car (cadillac STS) consumers have a good perception of the company and its proven top quality Weaknesses Relationship with workers The main weakness that General Motors have been battling with for the last century is their employee satisfaction which leads to constant strikes throughout the corporation. [...]