General Motors 2010 Annual Report Download - page 8

A New Vision,
a New Business Model
Our vision is simple, straightforward and clear; to
design, build and sell the world’s best vehicles. That
doesn’t mean just making our vehicles better than
the ones they replace. We have set a higher standard
for the new GM—and that means building the best.
Our vision comes to life in a continuous cycle that
starts, ends and begins again with great vehicle
designs. To accelerate the momentum we’ve already
created, we reduced our North American portfolio
from eight brands to four: Chevrolet, Buick, Cadillac
and GMC. Worldwide, we’re aggressively developing
and leveraging global vehicle architectures to
maximize our talent and resources and achieve
optimum economies of scale.
Across our manufacturing operations, we have largely
eliminated overcapacity in North America while
making progress in Europe, and we’re committed to
managing inventory with a new level of discipline.
By using our manufacturing capacity more efficiently
and maintaining leaner vehicle inventories, we
are reducing the need to offer sales incentives
on our vehicles. These moves, combined with
offering attractive, high-quality vehicles, are driving
healthier margins—and at the same time building
stronger brands.
Our new business model creates a self-sustaining
cycle of reinvestment that drives continuous improve-
ment in vehicle design, manufacturing discipline,
brand strength, pricing and margins, because we are
now able to make money at the bottom as well as
the top of the industry cycles.
We are seeing positive results already. In the
United States, for example, improved design, content
and quality have resulted in solid gains in segment
share, average transaction prices and projected re-
sidual values for the Chevrolet Equinox, Buick LaCrosse
and Cadillac SRX. This is just the beginning.
The new General Motors has one clear vision: to design, build and sell the world’s
best vehicles. Our new business model revolves around this vision, focusing on fewer
brands, compelling vehicle design, innovative technology, improved manufacturing
productivity and streamlined, more efficient inventory processes. The end result
is products that delight customers and generate higher volumes and margins—
and ultimately deliver more cash to invest in our future vehicles.
6 General Motors Company 2010 Annual Report