General Motors 2012 Annual Report Download - page 9

General Motors Company 2012 ANNUAL REPORT
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As we reduce our fixed and variable costs in Europe,
we’ll continue to play offense with no less than 23 new
Opel/Vauxhall vehicles and 13 new powertrains coming
between 2012 and 2016.
The first two of these products, the Mokka and
ADAM, are in segments where we didn’t compete
before, and they look like hits. By early 2013, we had
90,000 customer and dealer
orders for the Mokka and
30,000 for the ADAM.
One of the boldest decisions
we made in 2012 was to strike a
broad-based alliance with Peugeot
S.A. (PSA), Europe’s second-
largest automaker by volume.
The PSA alliance helps us on
both strategic and tactical fronts:
• We expect to see lower material costs through our
new purchasing alliance, which covers commodities,
components and other goods and services.
• Our logistics costs per vehicle should start to
decline now that we are working with Gefco, the
leading logistics provider in Europe and a former
PSA subsidiary.
• During the medium- to long-term, we expect
to accrue even greater synergies by jointly
developing several B- and C-segment products
from shared architectures.
All of this activity is designed to put Opel/Vauxhall back
on a growth trajectory. Although the political, economic
and competitive landscape remains volatile, we are
making progress on the things we can control. Our drive
for results is intense and we will adjust to any reality.
PROFITABLE GROWTH
AROUND THE WORLD
GM’s greatest strengths today are our market-
leading positions in the United States and China,
the world’s two largest markets.
In China, GM and our joint venture partners sold a
record 2.8 million vehicles in 2012. Sales increased
11.3 percent from 2011 and we gained a full point of
market share versus 2011.
Our two largest brands, Buick and Wuling, set all-time
sales records. Chevrolet also set a record for domestic
sales on the strength of products like the Cruze, Sail and
new Malibu. Cadillac posted modest growth and our new
Baojun brand had sales of more than 84,000 units in its
first full year in the marketplace.
By 2020, the market in China could reach 30 million
units annually, up from about 19 million in 2011, so
we are continuing to invest aggressively in all facets
of our business:
• We plan to introduce more than 10 new or upgraded
products in China on average each year through 2016.
• Shanghai GM opened a new plant in Yantai,
Shandong, and broke ground for its fourth
manufacturing base in Wuhan, Hubei.
• SAIC-GM-Wuling opened a new passenger car
production facility near its headquarters in
Liuzhou, Guangxi, and announced plans to build a
third production base in Chongqing Municipality.
• GM’s Pan Asia Technical Automotive Center (PATAC)
joint venture opened a climatic wind tunnel in
Shanghai, and together with PATAC, SAIC and
Shanghai GM, we opened the largest automotive
proving ground in the country in Guangde, Anhui.
“GM’s greatest strengths today are
our market-leading positions in the
United States and China, the world’s
two largest markets.”
11.3%
Sales increase in China
2012 over 2011