About General Motors International Holdings, Inc.

General Motors (GM), one of the world's largest auto manufacturers, makes cars and trucks, with well known brands such as Buick, Cadillac, Chevrolet, and GMC. GM also builds cars through its GM Daewoo and Holden units. The company operates through almost a half dozen business segments: GM North America, GM Europe, GM International Operations, and GM South America. Financing activities are primarily conducted by General Motors Financial Company. In mid-2017, GM sold its European operations (consisting of its Opel and Vauxhuall businesses) to France-based PSA Group for $2.2 billion.

Operations

GM operates through the following segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA), and GM Financial. GM North America is its largest segment, accounting for more than 70% of total revenue.

GM Financial is an automotive finance company and global provider of retail loan and lease lending products and services. Additionally, GM Financial offers commercial products to dealers that include new and used vehicle inventory financing, inventory insurance, working capital, capital improvement loans, and storage center financing.

Geographic Reach

GM has more than 100 locations in the US (excluding automotive financing operations and dealerships). It has assembly, manufacturing, distribution, office, or warehousing operations in more than 60 other countries.

GM Financial has 50 facilities, of which 25 are located in the US. Its major facilities outside the US reside in Canada, China, Germany, the UK, Brazil, and Mexico. The US generates around 65% of its total sales.

Sales and Marketing

The company sells cars and trucks to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. GM markets its vehicles worldwide primarily through a network of independent distributors, dealers, and authorized sales, service, and parts outlets with a network of over 19,500 dealerships. It spends about $5 billion each year on advertising.

Financial Performance

GM experienced historic growth in 2016 as revenues peaked at $166 billion, its highest total since the recession. This was fueled by higher sales from GM Financial (48%) and GM North America (12%).

GM North America in 2016 experienced strong retail demand for the Chevrolet Malibu and Spark, full-size trucks and SUVs, and the Buick Envision. GM Financial's surge in sales stemmed from increased leased vehicle income of $3.1 billion due to a larger lease portfolio.

Two segments, however, experienced declines for 2016. GMSA sales dropped by 8% due to decreased wholesale volumes due to difficult economic conditions in Brazil and Venezuela that drove an industry reduction of 12% compared to the same period in 2015. In addition, GMIO sales fell by 7% due to decreased wholesale volumes of pick-up trucks and passenger cars in Egypt and South Africa and full-size trucks and SUVs in the Middle East due to low oil prices.

GM's net income declined 3% from $9.69 billion in 2015 to $9.43 billion in 2016 mainly due income taxes paid in 2016 as opposed to tax benefits earned the previous year. GM's operating cash flow surged by 38% from $11.98 billion in 2015 to $16.55 billion in 2016. This was mostly due to the record-setting revenues for 2016 and a reduction in foreign currency transaction costs.

Strategy

The company's strategic plan includes several major initiatives to help to achieve 9-10% margins by the early 2020s. The initiatives include a strong product pipeline to retain customers; leading the industry in quality and safety; taking a lead in product design, with light-weight and mixed material body structures and in leading edge technology; growing its brands (especially the Cadillac brand); divesting underforming operations; and continuing to develop GM Financial as its captive automotive financing company.

Adhering to this strategy, in mid-2017 GM sold its Opel and Vauxhall businesses to European carmaker PSA Group for about $2.2 billion. The Opel/Vauxhall combination represented about $19 billion in annual revenue and included six assembly plants, five parts facilities, and an engineering center. The significant move of exiting a business it has controlled for nearly 90 years has followed unfruitful efforts since 1999 to make the Opel/Vauxhall subsidiary profitable again. The company has lost nearly $20 billion in Europe during that time.

Going forward, GM will instead focus on investing in China and the Americas. In China, it aims to increase the number of nameplates under the Buick, Chevrolet and Cadillac brands in China and continue to grow its business under the Baojun, Jiefang, and Wuling brands. It has also singled out the luxury segment as a springboard for future growth in China, buoyed by strong sales of Cadillac vehicles. In the electric car market, GM aims to launch at least 10 clean-energy vehicles in China between 2016 and 2020; this includes its Cadillac CT6 plug-in, Buick Velite 5, and Baojun E100 models.

GM's previous efforts to develop energy-saving models included the Chevrolet Volt, an electric car powered by a lithium-ion battery able to drive 38 miles on one charge, introduced in late 2010. In 2015, the auto maker introduced the second-generation Chevrolet Volt. It also launched the Chevrolet Bolt EV in 2016, which can drive 238 miles on a full charge.

To compete with up-and-coming competitors like Uber, Google, and Tesla, GM in 2016 began offering a new car-sharing service called Maven, which combines its multiple car-sharing programs under a single brand and expands its offerings to multiple cities and communities across the US. Operating in 17 cities with 100,000 members so far, Maven targets customers who don't want to own a car, but still need a ride every now and then. The customer downloads the Maven app to their phone and provides their driver’s license number and other data. After Maven checks their driving record to make sure they're a safe driver, he or she is then eligible to rent a GM vehicle for as long as they like, be it an hour or a week. Since GM owns the vehicles to choose from, it can insert whatever cars it wants in the Maven fleet, which optimizes costs and efficiency.

Mergers and Acquisitions

GM often uses acquisitions as a means to fortify its technological expertise and grow rapidly in cutting-edge markets. As such, the company in 2016 acquired California-based Cruise Automation Inc. (Cruise), an autonomous vehicle technology company. GM paid $581 million for Cruise in order to accelerate its development of autonomous vehicles. GM has recently tested autonomous vehicles on public roads in San Francisco; Scottsdale, Arizona; and Warren, Michigan.

Growing its financial services operations, in 2015 GM Financial acquired Ally Financial's 40% stake in SAIC-GMAC in China for $1 billion. The strategic move was partially responsible for a 48% surge in GM Financial's sales from 2015 to 2016.

Company Background

In the early years of the auto industry, hundreds of carmakers each produced a few models. William Durant, who bought a failing Buick Motors in 1904, reasoned that manufacturers could benefit from banding together and formed the General Motors Company in Flint, Michigan, in 1908.

The auto giant went through a six-week period of bankruptcy protection in 2009. GM was split into two companies when it emerged from Chapter 11 -- General Motors and Motors Liquidation (the name for leftover assets). In 2011 Motors Liquidation sold the majority of its assets, which encompassed almost 90 industrial sites in 14 states, which cleared the way for GM bondholders to receive stock in the new company.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

General Motors International Holdings, Inc.

300 Renaissance Ctr
Detroit, MI 48243-1402
Phone: 1 (313) 556-5000
Fax: 1 (313) 974-7618

Stats

  • Employer Type: Public
  • Prin: Tom Gunn
  • Employees: 37

Major Office Locations

  • Detroit, MI