Analysis of General Motors

Résumé du document

General Motors Company incorporated in 1908 is a multinational car manufacturer with headquarters in Detroit, Michigan. In this case study, GM intends to offer products with either less energy consumption or consumption of new fuel, with new design.

Actually, General Motors possesses rich resources, including several international car brands and assets over the world. In terms of process, the company has centralized testing and research laboratory to serve its constituent companies. In fact, the research and development department has as its objective to be more focused on developing effectively and efficiently on innovative projects identifying emergent technologies that might become strategically important in later years. Even though, General Motors invested in ventures with small companies developing related technologies.

In the frame of the Autonomy project, the company is sustaining innovation in short term; it offers the new technology as well as the improved performance of the product in extension of existing business model, the targeted consumers are already car owners, but interested in new incremental breakthrough technologies. In this case, the consumers are people who do not possess a driving license; cannot afford to change their vehicle; urban inhabitants are major users of public transportation because of the high fuel price and the parking issue.

Extraits

[...] Their investment on hybrids is very heavy; as they think that electric or fuel-cell is the future. So, their represent a main competitor as their target are the same: people who like new technology and who care about non-polluting. Honda is a main competitor for GM, as they are specialized in hybrids vehicles. Of course, it is not the same technology (Hybrid VS fuel-cell) but it is the same market (market of cars which pollute less). But they also invest in fuel-cell vehicles: small cars with this technology, named EV Plus. [...]

[...] However we have to keep in minds that “AUTOnomy is [GM's] long-term vision for how a fuel-cell-powered should be built”, and such a project requires a lots of yearly investments to improve the concept before people can use it. And moreover, the Hy- wire's design is actually very far from current car designs, so before launching this new product, GM has to wait the market and consumers are ready to use such a technology. And at the same time, it has to be careful not to be overtaken by competitors, who can quite easily go round GM's patent. [...]

[...] So GM has to keep focused itself only on its new concept AUTOnomy and its prototype Hy-wire. Indeed the idea of skateboard” could revolutionize the automotive sector, by opening new prospects. First this new concept is a technical revolution, because it means that there is no more any kind of connection (except electronic connections) between wheels of the car and the steering wheel. And, such a technologic advanced could be source of big economies of scale for GM, thanks to standardization. [...]

[...] So GM is one length ahead of its competitors. One of the main advantages of GM's strategy is that focusing on a technology based on hydrogen is a real ecological and sustainable bet. Hydrogen is a plentiful element that you can find in many chemical compounds, in water and in fossil fuels. Moreover, the fuel cell technology in the project AUTOnomy enables to integrate all the propulsion system, composed of few parts, in the chassis (“skateboard”). However, the technology is far from being ready for serial car manufacturing. [...]

[...] The fuel-cell program encompassed 500-plus engineers across three sites. This kind of investments is very important and costs probably more than outsourcing but the advantage is that they keep their technology protected. The idea to invest in ventures with companies which develop related technologies is relevant because GM keeps its core activity and its know- how (car maker) and at the same time goes into partnerships to invest in all the peripheral activities that are necessary to make this fuel cell technology possible. [...]