Central eastern europe developments
Download
1 / 29

Central Eastern Europe Developments - PowerPoint PPT Presentation


  • 305 Views
  • Updated On :

Central & Eastern Europe Developments. Automotive News Global Conference - Detroit Jan ’08 Chris Lacey – General Motors. Today :. Central & Eastern European Markets What are they How are they developing GM’s go - to - market strategy Conclusions …..and finally ……….

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Central Eastern Europe Developments' - KeelyKia


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Central eastern europe developments l.jpg

Central & Eastern Europe Developments

Automotive News Global Conference - Detroit Jan ’08 Chris Lacey – General Motors


Today l.jpg
Today :

  • Central & Eastern European Markets

    • What are they

    • How are they developing

    • GM’s go-to-market strategy

    • Conclusions

      …..and finally ………


Gm s central eastern europe l.jpg
GM’s “Central & Eastern Europe”

  • 29countries

    • East of Germany, North, West & East of both India & China!

    • 12 time zones / 25 million sq. kilometers

    • 475 million population [8% of the world, 54% of Europe]

    • 84 million vehicles in car parc today [Average age = 12+ years]

    • 30 languages, 4 religions

  • GDP range (nominal 2006)

    GDP Total (million USD) Per Capita (USD)

    Russia 986 940 Slovenia 22 079

    Moldova 3 266 Uzbekistan 753

  • Complex legislative environment

  • Less than 20 years ago private vehicle retailing illegal –now one of the fastest growing vehicle markets in the world !




How are they developing l.jpg
How are they developing ?

Automotive Industry Market – C&E Region

25,10% of Europe

8,70% Global

Annual Growth 20%

13,30% of Europe

4,60% of Global


Gm s go to market approach l.jpg
GM’S “Go-to-market approach”

  • Our 5 P’s

    • The right Partnerswithin GM to provide productsfor the range of price points required

    • The right Partners in market place for manufacturing

    • The right Partnersfor component supply

    • The right Partners in the market for vehicle distribution and repair

    • The right Partner philosophy with our customers


The right partners within gm for product l.jpg
The right Partners within GM for Product :

  • European Opel & SAAB

  • North American Cadillac / Hummer / Chevrolet SUVs

  • Asian [GM DAT] Chevrolet cars and SUVs

  • Russian [GM AvtoVaz] Chevrolet Niva

    Real evidence of GM’s Globalisation and “One Company” approach.


The right partners within gm for product9 l.jpg
The right Partners within GM for Product:


The right partners for manufacturing l.jpg
The right Partnersfor manufacturing

  • GM and GM DAT (formerly Daewoo) have a long history of manufacturing in the C&E Region from early 90’s

  • GM in late 90’s actually stopped vehicle manufacturing in 3 GM plants in the region – Hungary, Poland (Warsaw), and Turkey

  • Daewoo had 4 regional plants (licensed assemblers) all still operating (in Ukraine, Poland (FSO), Uzbekistan, & Romania)

  • 180,000 GM DAT vehicle kits assembled in these plants are not recorded in GM Sales in the region

  • Recent developments include the new GM plant in St Petersburg and manufacturing licenses being granted to Zastava in Serbia, Azia Avto in Kazakhstan, and FSO in Poland

  • Currently GM vehicles are manufactured or assembled at 9 locations in the region



The right partners for component supply l.jpg
The right Partners for component supply

  • GM’s Global Purchasing and Supply Chain group aims to increase component sourcing close to where we build

  • They extend supply channels, identify local suppliers and develop to GM standards for local and global manufacturing

  • Purchases in C&E region increased by 81% from 2003 to 2007, now 21.4% of total GME purchases

  • 440 TIER 1 Suppliers in C&E region

  • Resident Global Purchasing staff in C&E region increased by 305%

  • C&E region purchasing transactions 100% integrated in GPSC processes


Innovative c ustomers need to be served well l.jpg
Innovative customers need to be served well !


The right partners for distribution repair l.jpg
The right Partners for Distribution & Repair

  • GM network growth [contracts]‘95 = 202 ‘01= 402 ‘07 = 765

  • In depth blueprinting

  • Best applicant selection:Management focus / site location / funding / customer service attitude

  • Full multi-brand approach appropriate to location & opportunity

  • Facilities to full European standards from day 1

  • Communication / motivation / training & guidance


The right partners for distribution repair15 l.jpg
The right Partners for Distribution & Repair


The right partner philosophy with our customers l.jpg
The right Partner philosophy with our customers.

  • Changing the “old image” of the pre ’90’sindustry & treatingcustomers with respect

    • Transparent retail pricing [no premiums]

    • Warranty & “Policy”

    • Realistic labor / repair rates

    • Satisfaction survey

    • CRM activities

    • Retail finance and leasing options

    • Vehicle exchange or “buy back” policy

    • Excellent parts warehousing and fast delivery

    • Open communication /dialogue / CAC’s

    • G2 used car programme


Self assessment learnings observations l.jpg

Could we have done better?

Dealer in house systems

Full portfolio - only in 60% of market covered- Full CV range - Low cost product < $8,000

Wholesale & Retail finance in all markets

Faster manufacturing capacity increases

More training & more training

Learnings & Observations

No phones to mobiles

Cash to credit cards

Brand is King

High % Internet use

Mobile / clothes / travel / car / apartment / house

Millionaires Show [Russia]

Distribution partners’ positive can do attitude and investment policy

Entrepreneurs everywhere

Self Assessment / Learnings & Observations


Operational difficulties and legislation l.jpg
Operational Difficulties and Legislation

We try hard not be lost in the complex maze…


2001 through 2007 a success story l.jpg
2001 through 2007 – A Success Story

GM Volume & Share Development – Central & Eastern Europe

*Excludes 180K GM Daewoo Kits sold in the region in 2007


And finally l.jpg
……………..and finally

  • Market Volumes :

    - Russia = 2,708,659

    - Ukraine = 584,823

    - Turkey = 625,843

    - Poland = 372,054

    - China = 8,190,436

    • Brazil = 2,220,481

    • India = 1,812,375



And finally28 l.jpg
……………..and finally

Request:Can all of the Global Automotive Industry stop calling these markets & Brazil, China and many others:“Emerging”

Fact:They have “Emerged” and are our markets of“Growth & Opportunity”We forget / ignore/ mistreat them at our peril.



ad