Making the Best of Global Opportunities

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Making the Best of Global Opportunities
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Detroit Swedish Influence
Detroit 8
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Questions

• What is the global automotive industry growth
  trend?
• What is GMs role in this growth?
• What is the suppliers role?
• What are the future trends?

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Global IndustryDid You Know

• Global vehicle sales in 2007 will have increased
  by over 12 million units and auto revenue will be
  up 300 billion since CY 2002
• China unit sales in CY 2000 were less than half
  of Japan and equal to Germany -- in 2007 sales in
  China will exceed Japan by almost 3 million units
  and will be over twice as many as Germany
• In 2007 China is the third largest market in
  terms of auto revenue (100 billion)
• Sales in Russia will be almost equal to the U.K.
  this year(up 119 since 2001)
• Did you know that the Emerging 11 markets have
  grown from 16 of the industry in 2001 to over
  25 today

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Global Vehicle Sales
Source GMIA
PDB02_GlobalVehicle
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The Industry Then Now
PDB05_IndustryTable
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GM Sales PerformanceEmerging 11 Markets

• GM sales growth has outpaced Industry
  year-over-year growth since 2003
• GM sales this year will have increased over 150
  since 2001
• Greater than 100 growth in China, India, Russia
  and Turkey
• E11 markets will account for 25 of GM global
  sales in 2007

PDB15a_SalesPerform
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Talegaon -- India
GA
Paint
Body
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Norsom II -- China
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St. Petersburg -- Russia
GLC_SOY05
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GSPC Complexity
3,200 Suppliers
of Suppliers?
119 Global Creativity Teams
of Creativity Teams?
People Located in 87 Countries
of Countries?
of Part Numbers?
160,000 Part Numbers
9.2M Vehicles Shipped
Vehicles Shipped?
7.2B Logistics/13B Indirect ME
Logistics/indirect Spend?
89B Direct Material Purchases
Material Purchases?
Balancing GPSC Complexity
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2007 GPSC Priorities
Global Purchasing and Supply Chain
Quality/ Launch
Program Management
Current/Future Business
Supply Chain
Develop Execute Best Supply Chain Capabilities
Schedule, Build Ship the Plan Daily
Total Cost Approach Supporting Quality/Cost
Improvements
Launch New Programs _at_ Right Quality, Right Time,
Right Cost
Best Landed Cost Globally
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Results (2002 2006)

• 46 reduction in spills/plant disruptions
• 70 reduction in charters
• Parts delivered to station on time exceeds 99
• 41 reduction in warranty cost
• Implemented competitive sourcing process based
  upon best quality and total landed cost

GPSC One Global Organization
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Global Purchasing and Supply Chain
EuropeEric Alstrom

• Global PT Programs
• Global Sourcing

• Global Compact Car
• Global Mid Size Car
• CEE SFO

• Global Supplier Council
• Global Mid / Small Trk
• India SFO

• Global Small Car
• Global Compact Crossover
• Global Mini Car

• Full Size Trk
• Global RWD Luxury

• SBM
• Splr Ride Drive

Interior CFB Kim Brycz
Elec Vehicle/PT Akhil Puri
China SFO
Korea SFO
Mexico
Supplier of the Year

• GPSC Process
• Vendor Tooling

ME/IndirectBarbara Whittaker

• Chair Multicultural Womens Comm
• Diversity Council

Interim
Adv PurchasingMurat Aksel
1804 / 1810
Rev August 14, 2007
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Global Purchasing Organization

• Germany
• - Seat Structures
• - Clutches
• - Valvetrain
• - Glass
• Pwt Cooling
• Turbo SC

- Locksets Latches - Lighting - Halfshafts -
Conn Rods/Pistons - VID - Eng Mgt. Syst
Sweden - Conv. Tops
Canada - Labels - Stampings
Belgium - Wheels
United States - (75 Remaining CTs)
Russia
Poland - Accessory Drive Comp
Korea - Regulators
Spain - Rubber Sealing - Fasteners
Romania
Mexico - Seat Belts - HVAC - Control Heads -
Compressors - Cranktrain - Speakers Amps -
Antennas - Hoses and Lines
China - Electrical SMT Leadership - Electronic
Modules - Batteries - Switches and Horns -
Battery Cables - Iron Castings - SM/Med Iron
Castings - Emblems/Decals - CCC Interior Door
Handles - CCC Interior Sun visors - CCC Interior
Grab Handles
India - Tools Cables
Brazil - Conveyors
119 Creativity Teams
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Characteristics of Best Suppliers
SuperiorCulture
Superior Organizational Capability
Superior Competitive Advantage

• Product Focus
• Quality Performance
• Flawless Launches and Program Execution
• Sustainable Cost Advantage
• Best-in-Class Value

• Can Do Attitude
• Obsessed with Continuous Improvement
• Saying No the Right Way
• Strive for Stretch Targets

• Bring Best-in-Class Designs
• Breakthrough Technology
• Speed - Go Fast
• Global Presence

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General MotorsAdvanced Propulsion Technology
Strategy
LDB_AN07
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SAAB BioPower
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SAAB

• Product
• Bio-Fuel
• Global market potential

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Supply Base in Sweden

• High degree of education
• High concentration of Research and Development
• Long history and experience in the car industry
• Strongly internationalized companies
• High degree of Quality
• Availability of risk capital
• Presence on the international market / Right
  International culture
• Close proximity to Central and Eastern Europe

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The Potential of the Industry

• Mirroring the economy, global industry continues
  to set new records and becomeless volatile
• Global over-performance in recent years has led
  to stronger than anticipated volume growth --
  despite sluggishness in the U.S.
• Vast potential exists China and India(38 of
  global population) are just entering the take-off
  stage of mass vehicle ownership -- also Eastern
  Europe has upside potential

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