Supplying GM

SupplierBusiness

CONTENTS

CONTENTS ................................................................................................................... 3

LIST OF FIGURES AND TABLES ..................................................................................... 5

OVERVIEW ................................................................................................................... 6

Introduction ............................................................................................................................................. 6 Overall sales ............................................................................................................................................. 6 Financials ................................................................................................................................................ 7

PRODUCT AND PLATFORM STRATEGY ......................................................................... 9

Strategy overview ...................................................................................................................................... 9 Major model programmes ........................................................................................................................ 10 Platform strategy .................................................................................................................................... 13 Major platforms ...................................................................................................................................... 15 Component sharing ................................................................................................................................. 23 Volume planning .................................................................................................................................... 25

PRODUCTION STRATEGY ........................................................................................... 27

Production strategy overview .................................................................................................................... 27 Manufacturing network ........................................................................................................................... 29

NORTH AMERICA .....................................................................................................................31 EUROPE......................................................................................................................................33 CHINA ........................................................................................................................................35 SOUTH KOREA ..........................................................................................................................36 ASIA AND ASEAN .......................................................................................................................37 RUSSIA .......................................................................................................................................39 SOUTH AMERICA ......................................................................................................................40

Internal supply network ........................................................................................................................... 43 Modularisation strategy ........................................................................................................................... 43 Supplier parks ........................................................................................................................................ 44 Cluster of reference .................................................................................................................................. 45 Manufacturing strategy and efficiency plans .............................................................................................. 46

PURCHASING STRATEGY ........................................................................................... 48

Purchasing strategy overview .................................................................................................................... 48 Levels of vertical integration and outsourcing ............................................................................................. 49 Purchasing organisation .......................................................................................................................... 50 Purchasing offices.................................................................................................................................... 51 Key offices .............................................................................................................................................. 51 Key purchasing personnel ........................................................................................................................ 52 Purchasing spending ............................................................................................................................... 53

SUPPLIER SELECTION................................................................................................. 55

Supply base development ......................................................................................................................... 55 Major and strategic suppliers .................................................................................................................... 55 Openness to new suppliers ........................................................................................................................ 57 Supplier selection criteria ......................................................................................................................... 57

GLOBAL SOURCING ................................................................................................... 59

Approach ............................................................................................................................................... 59 NORTH AMERICA .............................................................................................................................. 59 EUROPE .............................................................................................................................................. 60 CHINA ................................................................................................................................................. 61 SOUTH KOREA ................................................................................................................................... 61 ASIA and ASEAN ................................................................................................................................. 62 RUSSIA ................................................................................................................................................ 62

Supplying GM

© 2012 IHS Global Limited 3

SOUTH AMERICA .............................................................................................................................. 63

PRICING POLICY ........................................................................................................ 64

Price reduction plans and practices............................................................................................................ 64 Payment terms ....................................................................................................................................... 64 Cost-reduction programmes ...................................................................................................................... 65 Raw material price management .............................................................................................................. 66

QUALITY MANAGEMENT ........................................................................................... 67

Quality level ........................................................................................................................................... 67 Quality management systems ................................................................................................................... 67 Integration into product development ........................................................................................................ 68 Management of sub-suppliers ................................................................................................................... 69 Supplier awards ...................................................................................................................................... 69

TECHNOLOGY ........................................................................................................... 73

Technological positioning ........................................................................................................................ 73 Areas of focus.......................................................................................................................................... 73 R&D spending........................................................................................................................................ 73 R&D organisation .................................................................................................................................. 74 Access to supplier technology .................................................................................................................... 75 Approach to alternative fuels, electrification and fuel cells ............................................................................ 75 Management of vehicle development ......................................................................................................... 76

INTERVIEW ................................................................................................................ 78

OEM-SUPPLIER SURVEY RESULTS ............................................................................... 88

Introduction to the SuRe Index ................................................................................................................ 88 Methodology .......................................................................................................................................... 88 Executive summary ................................................................................................................................. 89 Profit potential ....................................................................................................................................... 91 Organization .......................................................................................................................................... 92 Trust ..................................................................................................................................................... 93 Pursuit of excellence ................................................................................................................................ 94 Outlook ................................................................................................................................................. 95

SWOT ANALYSIS - SUPPLYING GM .............................................................................. 97

GLOBAL FOOTPRINT .................................................................................................. 98

FORWARD MODEL PROGRAMME ..............................................................................101

MAJOR SUPPLIERS – GENERAL MOTORS ....................................................................115

Supplying GM

© 2012 IHS Global Limited 4

LIST OF FIGURES AND TABLES

Figure 1: 2008 – 2017 (projected) global light vehicle sales [Source: IHS Automotive] ... 6 Figure 2: Opel hopes the new Adam will prove to be a market success .......................... 8 Figure 3: The Volt features a new powertrain and advanced materials ......................... 11 Figure 4: List of Vehicles Using Delta 2 (D2xx) Platform ............................................ 17 Figure 5: GM’s Plant Floor Communications Network Benefit Drivers [Source: Cisco]28 Figure 6: The LEED-accredited facilities at the Lansing Delta Township production plant ......................................................................................................................... 32 Figure 7: GM awarded Lear the 2011 Corporation of the Year award ......................... 70 Figure 8: SuRe Index 2010-2011 – Top End of the Ranking ........................................ 89 Figure 9: SuRe Index 2010-2011 – Middle of the Ranking........................................... 90 Figure 10: SuRe Index 2010-2011 – Bottom of the Ranking ........................................ 91 Figure 11: General Motors’s global plant locations ..................................................... 98 Figure 12: The 2014 Chevrolet Impala will be produced at multiple plants around the world ....................................................................................................................... 101 Table 1: General Motors financial data overview [Source: General Motors, Reuters, Moody's, Fitch, S&P] .................................................................................................. 6 Table 2: GM Global Vehicle Plant Production Forecast 2012 - 2017 ........................... 41 Table 3: General Motors’s plant locations with production forecast for 2012 ............... 99 Table 4: General Motors Global Sourcing Footprint .................................................. 100 Table 5: General Motors - Forward Model Programme - by Global Nameplate .......... 103 Table 6: Major Suppliers to GM ............................................................................... 115

Supplying GM

© 2012 IHS Global Limited 5