Академический Документы
Профессиональный Документы
Культура Документы
Industry
Car Manufacturing
SIC Code: 3711 Motor Vehicles and Car Bodies
NAICS Code: 336111 Automobile Manufacturing
Companies
Bayerische Motoren Werke AG
General Motors Corporation
Sean Riley
Table of Contents
INTRODUCTION................................................................................................................................................. III
INDUSTRY OVERVIEW......................................................................................................................................... 1
OVERVIEW.................................................................................................................................................................. 1
HISTORY..................................................................................................................................................................... 1
SALES AND REVENUES................................................................................................................................................... 3
Revenue Breakdown per Country...........................................................................................................................3
Production Breakdown per Country.......................................................................................................................3
GLOBAL EMPLOYMENT/WORKFORCE................................................................................................................................4
GLOBAL REGULATIONS...................................................................................................................................................4
GLOBAL STANDARDS..................................................................................................................................................... 4
INDUSTRY RELATED PROFESSIONAL AND TRADE ASSOCIATIONS..............................................................................................5
INDUSTRY RELATED PERIODICALS & NEWSLETTERS..............................................................................................................5
INDUSTRY FORECASTS/OUTLOOK.....................................................................................................................................6
YOUR ASSESSMENT OF INDUSTRY.....................................................................................................................................6
BAYERISCHE MOTOREN WERKE AG..................................................................................................................... 7
COMPANY PORTRAIT.....................................................................................................................................................8
Basic Data...............................................................................................................................................................8
HISTORY..................................................................................................................................................................... 9
DESCRIPTION OF BUSINESS...........................................................................................................................................10
Vision....................................................................................................................................................................10
Mission..................................................................................................................................................................10
Strategy Statement...............................................................................................................................................10
Job Information....................................................................................................................................................10
ASSESSMENT OF COMPANY.......................................................................................................................................... 11
Past Performance.................................................................................................................................................11
Future Opportunities............................................................................................................................................11
GENERAL MOTORS CORPORATION.................................................................................................................... 12
COMPANY PORTRAIT...................................................................................................................................................13
Basic Data.............................................................................................................................................................13
HISTORY................................................................................................................................................................... 14
DESCRIPTION OF BUSINESS...........................................................................................................................................15
Vision....................................................................................................................................................................16
Mission..................................................................................................................................................................16
Strategy Statement...............................................................................................................................................16
Job Information....................................................................................................................................................16
ASSESSMENT OF COMPANY.......................................................................................................................................... 17
Past Performance.................................................................................................................................................17
Future Opportunities............................................................................................................................................17
CAREER DEVELOPMENT CENTER (CDC).............................................................................................................. 19
RÉSUMÉ ASSISTANCE...................................................................................................................................................19
INTERVIEWING ASSISTANCE...........................................................................................................................................19
JOB SEARCH ASSISTANCE..............................................................................................................................................19
BUSINESS ETIQUETTE ASSISTANCE..................................................................................................................................19
YOUR SUGGESTED IMPROVEMENTS................................................................................................................................19
APPENDIX A-BMW............................................................................................................................................ 20
i
A1 CORPORATE GOVERNANCE AND OPERATIONS.............................................................................................................20
A1-1 Auditor/Accountant.....................................................................................................................................20
A1-2 Board of Directors........................................................................................................................................20
A1-3 Operating Officers........................................................................................................................................21
A2 SELECTED CONDENSED FINANCIALS...........................................................................................................................21
A2-1 Income Statement........................................................................................................................................21
A2-2 Balance Sheet...............................................................................................................................................21
APPENDIX B-GENERAL MOTORS........................................................................................................................ 22
B1 CORPORATE GOVERNANCE AND OPERATIONS..............................................................................................................22
B1-1 Auditor/Accountant.....................................................................................................................................22
B1-2 Board of Directors........................................................................................................................................22
B1-3 Operating Officers........................................................................................................................................23
B2 SELECTED CONDENSED FINANCIALS...........................................................................................................................23
B2-1 Income Statement........................................................................................................................................23
B2-2 Balance Sheet...............................................................................................................................................23
APPENDIX C-SOME RELEVANT FINANCIAL RATIOS............................................................................................. 24
ii
Introduction
When this project was assigned at the beginning of the semester, I talked with various former students. They all
made the same predictions, that it would take longer than expected, and that you will procrastinate and that you
won’t be able to find some data. All three happened.
Picking an industry to analyze was easy; I had been a car enthusiast for a very long time. Choosing the company’s
was simple as well. I have loved BMW’s for as long as I have liked cars. Then, I chose one from the US. At first, it
seemed like a daunting task..
When I was able to finally get myself to sit down, I spent one evening researching a company, and found about a
third of the information I had planned on.
Now, in the end I guess it’s true that there is some information I couldn’t find. Yet despite the negative predictions
and introduction I received to this project, I enjoyed it. I enjoyed doing research and learning about the different
companies and putting it together in a precisely formatted report. I must say that overall, this has been quite an
insightful project, from which I walk away from having learned many lessons.
iii
Industry & Company Profile
Industry Overview
SIC Code: 3711
NAISIC Code: 336111
Overview1
Global Revenue: $1,889,840 (2010)
Global Production: 77,774,094 (2010)
Global Workforce: 8.40 million people (2010)
Recessionary economic conditions in North America and Europe began taking a toll on those regions' automotive
industries in early 2001. An oversupply problem in North America prompted auto manufacturers to shut down
assembly plants for days and, in some cases, weeks, during the first quarter of the year. Immediately following the
tragic bombing of the World Trade Center towers in New York City, automotive sales tumbled. When analysts
began predicting that U.S. unit sales would fall nearly six percent to 16.5 million, General Motors launched a no-
interest financing program, dubbed "Keep America Rolling," that proved quite successful in boosting sales. The free
financing appealed to increasingly cost conscious consumers, and when sales at General Motors began to rebound,
other carmakers began to launch their own special promotions. In 2005, General Motors hit the jackpot again by
offering its employee-pricing program to everyone, which resulted in sales increases of 47 percent in June 2005,
the company's best year since 1986, as reported in the Detroit Free Press. Following in the company's success, Ford
and Chrysler offered similar plans in mid-2005. An overall increase in U.S. automotive sales of 15.9 percent was
due in large part to the GM program.
In early 2005, overseas automakers continued to gain U.S. market share. Sales of cars and light trucks in April 2005
alone numbered 1,504,332, an increase of 5.7 percent over the year before. However, GM and Ford still lost
market share, as did U.S. automakers overall. While the Chrysler Group showed substantial sales increases, and
General Motors and Ford's new cars were selling well, overall the Big Three U.S. auto companies lost market share,
bringing them to about 43 percent of the domestic market. Japanese companies were gaining rapidly. Nissan North
America showed a gain of almost 32 percent, Toyota Motor Sales U.S.A. increased sales by almost 26 percent, and
American Honda Motor Co. climbed 18 percent.
As of the mid-2000s, some manufacturers in the industry were considering increasing or beginning a build-to-order
(BTO) segment. Such vehicles, although they would be fewer in number than traditional vehicles, would command
a premium price from buyers who could custom design their own vehicles. In addition, cars would not be built on
uncertain forecast but on known demand. Time would tell whether or not the industry as a whole would move in
this direction.
History2
The development of the automobile was truly international in scope. Individuals from many countries contributed
innovations that led to the technical features and production methods commonly used on modern cars. The first
functional self-propelled vehicle, a three-wheeler powered by steam, was invented by Frenchman Nicholas Joseph
Cugnot in 1769. Nearly a century later, Belgian inventor Etienne Lenoir created the first internal combustion
engine. The first gasoline-powered vehicles were constructed by Germans Karl Benz and Gottlieb Daimler in 1885,
and Armand Peugeot offered the first motorized vehicles for public sale in France four years later.
In the United States, brothers Charles and Frank Duryea of Massachusetts worked from Benz's designs to launch
their own gasoline-powered automobile in the early 1890s. By 1899, some 30 different manufacturers produced
and sold various types of motor vehicles in the U.S. market. In 1914, U.S. inventor Henry Ford, who built his first
car in 1896, developed an automated production system that revolutionized the industry. Ford's assembly line with
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+Motor+Vehicles+and+Passenger+Car+Bodies&tab=1024&mst=car&docNum=I2501600073&bConts=16163
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+Motor+Vehicles+and+Passenger+Car+Bodies&tab=1024&mst=car&docNum=I2501600073&bConts=16163
its moving belts allowed his company to produce four times as many Model Ts as the year before and continually
reduce prices while adding new features to the product. By 1920, half of all the cars on the road worldwide were
Model Ts. Many other well-known U.S. manufacturers came into existence at this time as well, including Buick,
Cadillac, Chrysler, Oldsmobile, Packard, and Studebaker.
As the 1930s came to a close, the worldwide automobile industry continued to see many innovations. Automatic
transmissions were introduced, and manufacturers began to concentrate more on styling, aerodynamics, and fuel
efficiency. Although personal car production came to a virtual halt during World War II as most countries devoted
all industrial capacity to national defense, the war brought improvements to the industry in the form of better
assembly line production. World War II also introduced women to the factory workplace. Postwar prosperity and
pent-up demand meant the industry greeted world peace in 1945 with a booming worldwide automobile market.
The United States' Ford Motor Company had the very earliest success in reaching the markets of Western Europe.
Ford began assembling cars in the United Kingdom in 1911, and became Great Britain's largest producer by 1914.
Ford began exporting to Japan in 1925 and, following World War II, built plants in several major European nations.
General Motors followed a slightly different route, establishing an export company in 1911 to handle overseas
sales, entering the Japanese market in 1927. After World War II, GM expanded its European operations by
purchasing existing companies, such as Vauxhall in the United Kingdom and Opel in Germany.
The first imports to the U.S. market included exotic European luxury and sports cars: Rolls Royce, Mercedes, Jaguar
(later purchased by Ford Motor Company), and Porsche. Until the 1960s, imports accounted for less than one half
of one percent of all U.S. auto sales. Led by Volkswagen and its popular Beetle, imports improved their foothold in
the U.S. market, and rose from a 10 percent share in 1968 to 15 percent in 1970. The oil crises of the 1970s
increased the price of fuel and led many consumers to seek smaller, more fuel-efficient, foreign cars as the 1980s
came and went. Japanese manufacturers were most successful in anticipating the demand for fuel economy, and
quickly gained market share at the expense of U.S. producers. Design, quality, price, and economy of operation all
combined to see foreign market share continue to increase, and in 1998 nearly 40 percent of cars and 18 percent
of trucks in 1998 did not bear U.S. manufacture name plates. Ironically, in the late 1990s the wheel turned full
circle, and luxury cars were once again among the most popular of imported vehicles.
Throughout the 1990s, tough competition and minimal growth precipitated a trend toward restructuring
throughout the North American market. Automakers struggled to reduce new product development time and
improve quality (the latter in order to counter a perceived German and Japanese competitive advantage), while
still containing costs. That decade also saw the dominance of the United States' Big Three automotive companies
fade, while Japanese manufacturers first enjoyed huge success and then were forced to maintain similar market
share under the aegis of a volatile and occasionally shaky domestic economy. Recovery following the depressed
early 1990s was followed by a more generalized Pacific Rim recession in the late 1990s, although Japanese
overseas efforts continued to prosper. The proliferation of transplant auto companies reshaped the industry--but
no single event could equal the impact of the merger of automotive giants Chrysler Corporation and Daimler-Benz
AG.
The North American automotive industry boomed in 1999 and 2000, bolstered by favorable economic conditions,
such the lowest unemployment rate in decades, the growth of personal income levels, and a high level of
consumer confidence. Sales in the United States grew 3.6 percent to reach a record 17.5 million units in 2000.
However, the Big Three continued to lose ground to rivals like Toyota and Honda, who were largely responsible for
the 5 percent global market share loss by the Big Three between 1997 and 2000. This was due at least in part to
efforts by Japanese car makers to expand their product lines to more closely resemble those of the Big Three.
Global Employment/Workforce4
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http://www.oica.net
Global Regulations
Emissions are regulated individually by each country, or in the United States by each state. The European Union
has a five-step twenty three year stringent plan to reduce emissions of cars. Other developed nations have equal
laws in place, except for the United States, whose emission laws differ in that they are not as severe and are
structured differently. Due to their different structure, import car manufacturers must often modify the fuel intake
and emission system of their engines, resulting in decreased performance.
Laws and regulations governing the building of cars (such as regulations regarding lights, seat belts, and airbags)
are created by each country independently, often prompting car manufacturers to have different models in
different countries. GM for instance, sells a totally different model-line up in Europe under their OPEL brand name.
Global Standards5
ISO 9001- Quality Assurance ISO 3006:2005 Passenger Car Wheels for Road Use, test
methods
ISO 4000-1:2001 Passenger Car Tires and Rims (Tires) ISO 4000-2:2001 Passenger Car Tires and Rims (Rims)
ISO 7736:1984 Car radio for front installation ISO 9815:2003 Car and trailer combinations, lateral
stability test
ISO 10191:1995 Verifying car tire capabilities, ISO 11425:1996 Specification of rubber hoses and hose
laboratory test methods assemblies in power steering systems
CLEPA Standard for uniform and safer replacement The UN has many agreements, including one about
parts latching mechanisms on doors.
Note: Each country and often each state (within the US) has different standards and laws to which automobiles
must be built. There are very little global standards. However, ASTM and ISO both publish information and
standards related to the raw materials which make up a car.
5
http://www.iso.org/iso/en/ISOOnline.frontpage
6
http://www.world-newspapers.com/auto.html
German Association of the Automotive Industry The International Organization of Motor Vehicle
Manufacturers
Mexican Association for the Automotive Industry The Michigan Manufacturers Association
Association of International Automobile Manufacturers Japan Automobile Manufacturers Association of Canada
of Canada
Japan Automobile Manufacturers Association Asociacion de Fabricas de Automotores
Federal Chamber of Automotive Industries Fachverband der Fahrzeugindustrie Österreichs
Fédération Belge de l'Industrie de l'Automobile et du Associação Nacional dos Fabricantes de Veículos
Cycle Automotores
Union of Automobile Importers in Bulgaria Canadian Vehicle Manufacturers' Association
China Association of Automobile Manufacturers Automotive Industry Association
De Danske Bilimportører Egyptian Automobile Manufacturers Association
Motorex Autotuojat r.y.
Comité des Constructeurs Français d'Automobiles Verband Der Automobilindustrie e.V.
Association of Motor Vehicle Importers Representatives Association of the Hungarian Automotive Industry
Associazione Nazionale Fra Industrie Automobilistiche Japan Automobile Manufacturers Association, Inc.
Korea Automobile Manufacturers Association Latvian Authorized Automobile Dealers Association
Nederlandse Vereniging de Rijwiel-En-Automobiel Bilimportørenes Landsforening
Indusrie
Associação dos Industriais de Montagem de Association of Automotive Manufacturers and
Automóveis Importers
Automotive Industry Association Association of Automotive Manufacturers and
Authorized Importers of Slovenia
National Association of Automobile Manufacturers of Asociacion Espanola de Fabricantes de Automoviles y
South Africa Camiones
Chambre Syndicale Suisse de l'Automobile et Branches Association of Ukrainian Motor Vehicle Manufacturers
Annexes
Sociey of Motor Manufacturers and Traders Ltd. Alliance of Automobile Manufacturers
The Uzbek Association of Automobile Industry Yougoslav Association of Motor Vehicle Manufacturers
Enterprises – Uzautosanoat
Association des Constructeurs Européens
d'Automobiles
Industry Forecasts/Outlook
Our overall outlook for the automobile manufacturer’s is negative. While we expect demand this year and next to
be at the high end Competition should remain intense on new product introductions and incentives. Relatively high
gasoline prices are hurting demand for fuel-inefficient but profitable light trucks. Weakening housing demand
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could also hurt vehicle sales. Domestic company profits before special items should benefit from cost cutting
including employee buyouts. One of the issues is now the US companies are looking to move from high cost places
like the US for manufacturing and moving plants to other countries where it is cheap for them to operate.
The highly profitable light truck, minivan, and sport utility segment, which we think is facing increasing pricing
pressure now that the gasoline prices have risen sharply and sales of lower-margin crossover utility vehicles are
taking share from SUVs. We project that margins will come down in this segment. We see increased sales of luxury
import models hurting domestic manufacturers' margins in the luxury vehicle category. However, we expect
retiree and health care costs to squeeze margins, and that lower production will be a near-term negative. It has
also become a trend for automakers to reduce the number of technological platforms with a greater number of
models produced from each model in order to stay cost competitive.
Web Page
http://www.bmwgroup.com
Primary SIC
3711 Motor Vehicles and Car Bodies
Primary NAICS
336211 Motor Vehicle Body Manufacturing
Secondary SICs
3751 Motorcycles, bicycles and
parts
3724 Aircraft engines and engine
parts
3829 Measuring and controlling
devices
6141 Personal Credit Institutions
Secondary NAICSs
336991 Motorcycle, Bicycle and Parts
Manufacturing
336412 Aircraft Engine and Engine
Parts Manufacturing
334519 Other Measuring and Controlling Device Manufacturing
522210 Credit Card Issuing
Incorporation Year
1916
8
2010 BMW Annual Report p2
Official Correspondence Address
BMW AG
Petülring 130
Munich, D-80788
Germany
Telephone Number
+49.89.382.0
Basic Data
Exchange(s): Frankfurt Stock Exchange (DAX 30)9
Stock Ticker: BAMXF
Publicly traded since: 1918
Shares Outstanding: 655,160,00010
Market Value: € 39.339 billion
Fiscal year end: 12/31
Employees: 95,450 (end 2010)
Subsidiaries: Rolls-Royce Motor Cars, BMW Motorrad, Husqvarna
Competitors
Daimler-Chrysler
Ford
Volkswagen
General Motors
Toyota
Honda
History12
BMW's logo speaks to its origin: a propeller in blue and white, the colors of Bavaria. In 1913 Karl Rapp opened an
aircraft-engine design shop near Munich13. He named it Bayerische Motoren Werke (BMW) in 1917. The end of
WWI brought German aircraft production to a halt, and BMW shifted to making railway brakes until the 1930s.
BMW rolled out its first motorcycle, the R32, in 1923, and the company began making automobiles in 1928 after
buying small-car company Fahrzeugwerke Eisenach.
In 1933 BMW launched a line of larger cars. The company built aircraft engines for Hitler's Luftwaffe in the 1930s
and stopped all auto and motorcycle production in 1941. BMW chief Josef Popp resisted and was ousted. Under
the Nazis, the company operated in occupied countries, built rockets, and developed the world's first production
jet engine.
9
http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=ffffcrkhxyrhyjssyc
10
http://www.euroland.com
11
BMW Group Vehicle Manufacturer Strategic Insight
12
http://premium.hoovers.com/subscribe/co/history.xhtml?ID=ffffcrkhxyrhyjssyc
13
http://www.bmwworld.com/bmw/history/index.htm
With its factories dismantled after WWII, BMW survived by making kitchen and garden equipment. In 1948 it
introduced a one-cylinder motorcycle, which sold well as cheap transportation in postwar Germany. BMW autos in
the 1950s were large and expensive and sold poorly. When motorcycle sales dropped, the company escaped
demise in the mid-1950s by launching the Isetta, a seven-foot, three-wheeled "bubble car."
Herbert Quandt saved the enterprise in 1959 by buying control for $1 million. Quandt's BMW focused on sports
sedans and released the first of the "New Range" of BMWs in 1961. Success of the niche enabled BMW to buy
automaker Hans Glas in 1966.
The company bought UK carmaker Rover from British Aerospace and Honda in 1994 and introduced a cheaper
vehicle, the four-wheel-drive Discovery. It launched Highlander Land Rover in 1996 to meet a growing demand for
4x4 utility vehicles.
BMW offered to buy the luxury Rolls-Royce auto unit (including the Bentley) from UK-based Vickers in 1998, but
lost out when Volkswagen (VW) countered with a higher offer. The company fared better, however, when aircraft
engine maker Rolls-Royce sold the Rolls-Royce auto brand name and logo to BMW for $66 million. (VW got to use
the name until 2003.) Also in 1998 BMW was hit by a class-action lawsuit brought by Holocaust survivors seeking
compensation for their work as slave laborers during WWII.
In mid-1998 BMW began cutting jobs at its money-losing Rover unit. As Rover's plants continued their downward
trend in 1999, BMW's board forced out chairman Bernd Pischetsrieder, who spearheaded the Rover acquisition in
1994. The UK later pledged to help pay for renovations at Rover's Longbridge plant to save about 14,000 jobs and
prevent it from moving operations to Hungary.
The company in 2000 sold its Land Rover SUV operations to Ford in a deal worth about $2.7 billion. Also that year
BMW handed over its Rover Cars operations and MG brand to the Phoenix Consortium, a UK-based group led by
former Rover CEO John Towers.
In 2001 BMW launched its MINI brand in the UK; other European markets soon followed. BMW brought the MINI
Cooper to US shores in 2002. The following year BMW took control of the Rolls-Royce brand from Volkswagen, and
began making Rolls-Royce Phantoms in Goodwood in the south of England.
Despite selling the operations of Rover in 2000, BMW still retained the rights to the brand. In 2006 BMW agreed to
sell the Rover brand to an unidentified buyer at an undisclosed price, although Dow Jones Newswires reported the
buyer was Shanghai Automotive Industry Corp. and the price was nearly $21 million. That deal, however, was
derailed a month later when Ford Motor said it would exercise its right of first refusal agreement with BMW and
take control of the brand for about $11 million.
Description of Business
Bayerische Motoren Werke (better known as BMW) is one of Europe's top automakers. BMW's car
offerings include sedans, coupes, convertibles, and sport wagons in the 1 Series, 3 Series, 5 Series, 6 Series, and 7
Series model groups. Other models include the M3 Coupe and Convertible, M5 Sedan, and the M6 Coupe and
Convertible; the X3 and X5 sport utilities; and the Z4 roadster. In addition to its BMW automobiles, the company's
operations include motorcycles (K 1200 GT, R 1200 GS, and R 1150 R models, among others), the MINI automotive
brand, Rolls-Royce Motor Cars, and software (softlab GmbH). BMW's motorcycle division also offers a line of
motorcycling apparel such as leather suits, gloves, and boots.
BMW has opened up a joint-venture in China (with local partner Brilliance China Automotive Holdings Ltd.) for
production of BMWs for that market. The company is also looking out for opportunities in Eastern Europe as
nations there join the European Union. BMW is also working to set up a manufacturing and dealer presence in
India to bolster its Asian strategy as Asia is the fastest-growing geographical segment of the automotive market.
The new 7-Series will be capable of burning hydrogen as well as gasoline. When in hydrogen mode its only
emission is water vapor. Due to the new sedan's high price, it will only be available for lease to select BMW
customers. BMW is also working on fuel cell-powered cars, but is launching the hydrogen/gasoline 7-Series first as
it is more practical for the near-term.
Germany's Quandt family controls BMW 14.
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Vision
With BMW, MINI and Rolls-Royce Motor Cars, the BMW Group is the world's only car maker to pursue a purely
premium strategy for all market sectors covered by its brands, from exclusive smaller cars to top-of-the-range
luxury limousines. 15
Mission
"To be the most successful premium manufacturer in the industry." 16
Strategy Statement
Identifying potential and encouraging growth
Knowing what we represent
Recognizing where our strengths lie and making the best use of every opportunity 17
Job Information
“The human factor is the No. 1 criterion in determining a company's relative success. Accordingly, we see our
associates not as a cost factor, but instead as an essential performance factor. This is especially true because any
human resources policy that is not oriented towards the associate will always lead to negative cost effects in the
long run, thus proving uneconomical.
As a future-oriented company, we seek to pursue an exemplary, creative and associate-oriented human resources
policy, making significant contributions to business success through our human resources activities. The human
resources policy of the BMW Group is an integral feature of our overall corporate policy in both strategic and
operative decisions.18”
Assessment of Company
Past Performance
BMW has been on the rise ever since mid march. During that month the company took a big hit and lost a lot of
points in the stock market. The cost of raw material is still high and now with gas prices going up people are
looking for more miles per gallon in their car. BMW financial services operations also enjoyed a brisk business in
2010.
High oil prices have driven up costs for plastics, and steel prices also remain high.
Future Opportunities
Group revenues rose steeply, reflecting the overall strong sales volume performance of the BMW Group. Strong
growth was recorded for both the third quarter and the nine-month period. BMW wants to sell 1.8 million vechiles
per year by 2010. Now with the SUV line expanding with the 1 series and producing a four door grand turismo car
revenues will climb
The Group's reported results benefited accordingly from the rise in revenues. The third-quarter profit before
financial result (EBIT), for example, increased by euro 1,137 million to euro 1,192 million (2009: euro 55 million),
while the nine-month EBIT increased by euro 3,189 million to euro 3,358 million (2009: euro 169 million).
With a great market potential, and a huge customer base that is loyal to BMW, if BMW continues to design
advanced modern cars, its growth potential is nearly unlimited.
15
http://www.bmwgroup.com
16
http://www.bmweducation.co.uk/coFacts/view.asp?docID=26&topicID=1
17
http://www.bmweducation.co.uk/coFacts/view.asp?docID=296&topicID=1
18
http://bmwgroup.com/e/nav/index.html?../0_0_www_bmwgroup_com/home/home.html&source=overview
General Motors Corporation
Company Portrait
General Motors Corporation and its subsidiaries engage in the development, production, and marketing of cars,
trucks, and parts worldwide. It offers small, midsize, sports, and luxury cars; and pickup, van, utilities, and medium
duty trucks. The company sells its products under the Chevrolet, Buick, Saab, GMC, Pontiac, Cadillac, Hummer, and
Saturn, Opel, Vauxhall, Isuzu, Holden, and Daewoo brand names in Canada, Europe, Latin America, and Asia Pacific.
It also provides a range of financial services, including consumer vehicle financing, automotive dealership and
other commercial financing, residential mortgage services, automobile service contracts, personal automobile
insurance coverage, and commercial insurance coverage. In addition, the company offers after sale services, such
as maintenance, light repairs, collision repairs, and vehicle accessories. General Motors markets its products
through distributors and dealers, as well as through retail dealers. The company was founded in 1908 and is based
in Detroit, Michigan19.
Web Page
http://www.gm.com
Primary SIC
3711 Motor Vehicles and Car Bodies
Primary NAICS
336211 Motor Vehicle Body Manufacturing
Secondary SICs
3714 Motor vehicle parts and accessories
6153 Short-term business credit
6141 Personal credit institutions
6159 Misc. business credit institutions
6331 Fire, marine, and casualty insurance
Secondary NAICSs
336350 Motor Vehicle Transmission and Power Train Parts Manufacturing
522291 Consumer Lending
522220 Sales Financing
524126 Direct Property and Casualty Insurance Carriers
517410 Satellite Telecommunications
Incorporation Year
1916
Telephone Number
313-556-5000
Basic Data
Exchange(s): NYSE
Stock Ticker: GM
Publicly traded since: 1916
Shares Outstanding: 1.560 billion
Market Value: $48.804 billion20
19
http://finance.yahoo.com/q/pr?s=GM
20
http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GM
Fiscal year end: 12/31
Employees: 202,00021
Subsidiaries: OnStar, Adam Opel AG, GM Holden Ltd, GM Financial, Vauxhall Motors, GM Korea, General Motors
do Brasil
Competitors23
Daimler-Chrysler
Ford
Toyota
History25
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.
Durant bought 17 companies (including Oldsmobile, Cadillac, and Pontiac) by 1910, the year a bankers' syndicate
forced him to step down. In 1915 he regained control when he formed a company with racecar driver Louis
Chevrolet. They soon formed GM Acceptance Corporation (GMAC, financing) and bought businesses including
Frigidaire (sold in 1979) and Hyatt Roller Bearing.
With Hyatt came Alfred Sloan (president, 1923-37), who built GM into a corporate colossus via a decentralized
management system. Unlike Ford -- which offered cars in any color you liked as long as it was black -- GM offered a
range of models and colors; by 1927 it was the industry leader. It bought Vauxhall Motors (UK, 1925), merged with
In the post-war boom years GM expanded with the nation; the good times rolled until Japanese automakers
became established in the 1970s. GM spent much of the decade trying to emulate the Japanese while making its
cars meet federal pollution-control mandates. CEO Roger Smith laid off thousands of workers.
In 1984 GM formed New United Motor Manufacturing (NUMMI) with Toyota to see if Toyota's manufacturing
techniques would work in the US. GM also bought Electronic Data Systems (1984), Hughes Aircraft (1986), and 50%
of Saab Automobile (1989). GM launched the Saturn car in 1990; that year Robert Stempel became CEO. In 1992
GM made what was the largest stock offering in US history ($2.2 billion), and Jack Smith replaced Stempel as CEO.
President Rick Wagoner replaced Smith as CEO in June 2000. Also in 2000, GM and Fiat entered talks to acquire
Daewoo Motor after Ford withdrew its bid for the South Korean carmaker. GM announced in December that it
would phase out its Oldsmobile division (the last Oldsmobile rolled off the assembly line in 2004) and cut its
salaried workforce by 10%.
In 2001 GM paid about $600 million to double its stake in Suzuki to 20%. That year GM submitted a bid (reportedly
around $776 million) to take over Daewoo Motor. The company also announced that it would spend $340 million
on a joint venture with AvtoVAZ (Russia's biggest automaker) to build 75,000 SUVs a year.
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As GM reportedly neared a deal in 2001 to combine Hughes Electronics (and DIRECTV) with Rupert Murdoch's
News Corp., EchoStar -- the US's #2 satellite TV business -- made a $32 billion all-share offer for Hughes (Echostar's
offer later dropped to $26 billion after News Corp. dropped out of the bidding). The deal later fell through when it
was blocked by the FCC.
Later in 2001 GM announced that it planned to discontinue the once popular Chevrolet Camaro and Pontiac
Firebird models.
The following year GM took a 42% stake in South Korea's bankrupt Daewoo Motor (now named GM Daewoo Auto
& Technology Company) for $251 million. GM entered the Daewoo deal with partners Suzuki (which took a 15%
stake) and Shanghai Automotive Industry Corp. (which has a 10% stake). The remaining 33% of the venture is held
by GM Daewoo's creditors. GM later increased its stake in GM Daewoo to 49% and then again to 50%.
Meanwhile, GM retooled its relationship with Isuzu Motors. Through a recapitalization, GM's stake in Isuzu was
reduced to 9%. As 2002 wound to a close Fiat sold its entire stake in GM to an unnamed investment bank for
nearly $1.2 billion.
Early in 2003 GM completed the sale of its defense unit (armored vehicles) to General Dynamics for $1.1 billion.
Later that year GM finally made a deal to unload its 20% stake in Hughes Electronics by agreeing to sell its shares
to News Corp. in a transaction valued at about $3.1 billion. The deal was completed in the waning days of 2003.
The company announced in 2004 that the headquarters for its Asia Pacific operations would move from Singapore
to Shanghai.
2004 also marked the last model year for GM's Oldsmobile brand. The world's last Oldsmobile rolled off the
assembly line in June 2004 -- almost 100 years after GM first bought the brand. Later in 2004 GM wrote its first car
loan in China through a joint venture with its Chinese partner Shanghai Automotive Industry Corp., and in so doing
became the first western car company to offer auto loans to Chinese consumers.
In October 2004 GM announced it would trim 12,000 jobs in Europe (one-fifth of its European workforce) in hopes
of saving its ailing Continental operations about $618 million per year.
Early in 2005 GM sold its money-losing locomotive manufacturing operations (GM Electro-Motive) to Greenbriar
The deal could have forced GM to purchase the remaining stake in Fiat's troubled automotive operations that it
didn't already own. Instead GM paid $2 billion to make the whole mess go away. GM and Fiat have since dissolved
their joint venture operations and gone their separate ways.
Later that year GM sold its stake in Fuji Heavy Industries, maker of Subaru passenger vehicles. Their collaboration
never bore the desired fruit and GM sold just under 9% of its 20% stake to Toyota Motor for about $315 million.
GM's remaining 11% stake was sold back to Fuji as part of Fuji's open market buyback program and through
regular stock sales.
Description of Business
General Motors (GM) has steered around competitors to remain the world's #1 maker of cars and trucks, with
brands such as Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, and Saturn. GM also produces cars through its
Holden, Opel, and Vauxhall units, and heavy-duty transmissions through Allison Transmission. GM also has stakes
in Suzuki Motor, and GM Daewoo Auto & Technology. Subsidiary GMAC provides financing. GM has been selling off
non-core assets including stakes in Fiat and Fuji Heavy Industries (Subaru), as well as its locomotive manufacturing
business.
The Chapter 11 filing of former GM parts subsidiary Delphi Corp. cast a shadow of potential bankruptcy on GM
after the automaker reported a staggering 2005 loss of $10.6 billion.
Health care costs have been an albatross hanging over GM's head for years. To address its health care woes GM
has hammered out a tentative deal with the United Auto Workers (UAW) union that would reduce GM's payout for
retiree health care by about $15 billion while cutting employee health care costs by about $3 billion. In another
UAW-GM scheme, GM offered to finance the early retirement of thousands of unionized GM and Delphi workers.
Ultimately, about 35,000 hourly employees, or about one-third of GM's hourly workforce, accepted the buyouts.
The better-than-expected reaction to the buyout offers puts GM about two years ahead of schedule for planned
job cuts. The deals also make a work stoppage at Delphi less likely. In addition to hourly job cuts, GM has also
announced it would cut 7% of its white collar positions, or about 2,500 jobs.
To help pay the bills while it restructures GM has sold some assets. GM's finance arm, GMAC, has sold a 78%
equity stake in its commercial mortgage business to a private equity consortium including Kohlberg Kravis Roberts
& Co., Five Mile Capital Partners, and Goldman Sachs Partners. The deal raised nearly $9 billion for GMAC. GM has
also sold a 51% stake in GMAC to a consortium of investors led by Cerberus Capital Management for $14 billion.
The move will raise much-needed cash for GM and the carmaker hopes it will return the financing unit's credit
rating back to investment grade status.
Outside of North America GM's fortunes don't look as bleak. With the world's largest pool of potential drivers,
China's automotive market is experiencing explosive growth. GM's unit sales keep climbing in China and the
company has increased its market share.
GM is trying to work with its GM Europe division by bringing the operations of its Opel, Saab, and Vauxhall
subsidiaries under tighter, centralized control. GM has done away with the individual finance, engineering,
marketing, purchasing, and manufacturing controls at Adam Opel, Saab, and Vauxhall by moving those functions to
GM Europe headquarters in Zurich. The three brands will also share a common, pan-European design team. The
reorganization does not include plant closings or layoffs, but rather seeks to achieve cost savings by sharing
platforms and eliminating duplication of effort26.
Vision27
Our vision is to be the world leader in transportation products and related services. In order to achieve this vision,
we recognize that many issues must be addressed and many goals attained. It is imperative that economic,
environmental and social objectives be integrated into our daily business objectives and future planning activities
so that we can become a more sustainable company.
Mission28
GM does not differentiate between a corporate mission and vision.
Strategy Statement29
Technology is the most efficient way we can address many current issues, such as fuel efficiency and climate
change. It is through our products that most of the impacts arise and through which many of the solutions can be
reached. Our strategy is to accelerate the development and deployment of new technology while at the same time
improving existing technology.
Innovation is not a new priority for GM. In our increasingly competitive global industry, marked by excess capacity
and a growing number of strong global competitors, innovation is critical to our future success. Innovation
provides us with the tools needed to develop new ways of doing things, such as new concepts of mobility, as well
as new ways of working, both as a company and with others.
Partnerships with stakeholders and others are also an important part of doing business. We recognize that we
must continue our long history of building strong partnerships with our employees, industries, governments,
markets, communities, and others in order to be responsive to the needs and concerns of our various
stakeholders. These partnerships are needed in order to create a sustainable future.
Job Information
The following is a list of standards which all GM employees are held to.
Collaborates proactively on global issues and drives for team success.
Encourages teamwork.
Leverages ideas, concepts, products and processes for GM units around the world.
Leads teams effectively within and across organizations/borders.
Encourages others to look beyond individual organizations and focus on GM's success.
Stimulates external and internal exploration, benchmarking and learning.
Understands customers, markets and competitors, and focuses on customer requirements and customer
enthusiasm.
Sets and deploys high-impact, stretch goals and objectives focused on making GM the best.
Makes stretch "the very best we can do" -- 1 in 10 -- benchmark performance.
Understands, measures and manages intelligent risks.
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http://www.gm.com/company/gmability/sustainability/reports/01/ /vision_strategy/index.html
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Motivates, stimulates and supports efforts to deliver results that achieve competitive advantage.
Monitors, evaluates, coaches and rewards based on performance and results that really make a difference.
Champions fast implementation of leading-edge changes.
Eliminates bureaucracy and slowness.
Ensures that speed and cycle times are understood, measured and improved.
Inspires and leads employees and teams to pursue "GoFast!" opportunities.
Is decisive and empowers others to make decisions based on performance and integrity.
Seeks feedback from others on ways to go fast; is respectful and responsible.
Focuses on the customer: links customer needs and wants to innovation and product development.
Integrates across functions to address customer needs.
Embraces excellence and innovation: leads efforts to create value-added products and services.
Supports initiatives focused on "designing, building and selling" excellent products and services to our
customers.
Questions conventional thinking on products and services.
Never compromises safety.
Assessment of Company
Past Performance
In the late 1990s, GM had regained market share; its stock had soared to over $80 a share by 2000. However, in
2001, the stock market drop following the September 11, 2001 attacks, combined with historic pension
underfunding, caused a severe pension and benefit fund crisis at GM and many other American companies and the
value of their pension funds plummeted. A weak U.S. dollar and private health care (as opposed to nationalized
health care in other countries) costs also put GM at a disadvantage to its Japanese, Korean, and European
counterparts. In successive moves, GM responded to the crisis by fully funding its pension fund; however, its Other
Post Employment Benefits Fund (OPEB) became a serious issue resulting in downgrades to its bond rating in 2005.
The company expressed its disagreement with these bond rating downgrades. In 2006, GM responded by offering
buyouts to hourly workers to reduce future liability; over 35,000 workers responded to the offer, well exceeding
the company's goal. GM has gained higher rates of return on its benefit funds as a part of the solution. Stock value
has begun to rebound - as of October 30, 2006 GM's market capitalization was about $19.19 billion. GM stock
began the year 2006 at $19 a share, near its lowest level since 1982, as many on Wall Street figured the ailing
automaker was bound for bankruptcy court.
Future Opportunities
The outlook for the US automotive industry for the rest of the year is not bad, concidering that since the change of
GM’s CEO the sales are increasing and the company has already turned a profit in the first quarter. The Big Three’s
progress is expected to be limited for the year, shaped by softened domestic demand, due to the growing impact
of higher lending rates. Lower interest rates, which supported market growth in recent years, have become
unsustainable.
American brands are no longer the preferred choice, with heavyweights such as GM and Ford losing more market
share, while DaimlerChrysler struggles to stay cost competitive. However, the aggressive restructuring strategies
put in place by the Big Three should see improved results for the rest of the year. GM’s redundancy program and
cost-cutting efforts have had a noteworthy effect on its profits and cash flow generation ability. Domestic
automakers are shrinking in size to regain traction, resulting in a significant reduction in manufacturing jobs. On a
positive note, hiring by Japanese and South Korean transplants is offsetting job losses as the industry undergoes a
painful shakeout30.
With a challenging industry and many problems, GM has a lot of work to do to be able to stay profitable. Yet,
they’re plan seems to work as sales are rising and the cost of those sales are going down.
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“The North-America Automotive Sectors” Published by MergentOnline
Industry & Company Profile
Résumé Assistance
The CDC has great résumé help online. First, they have an overview page depicting and explaining the six step
process to finalizing your résumé. Then, they link to a University of Minnesota website which goes through a
similar six step process in great detail. The steps they have listed are: Gathering information, deciding what to
include, choosing a format, sections of a résumé, writing a draft, and critique/revision. The site takes about half an
hour, and afterwards you are fully educated on how to create your own résumé.
Interviewing Assistance
The CDC has a great page about Interview preparation. It goes through what preparations should be done
beforehand, things to do and not to do during the interview, things to say and not to say, and proper behavior
after an interview. Further, it has a list of potential questions which can be asked during the interview. I found this
especially helpful during an interview for my summer internship.
Appendix A-BMW
A1-1 Auditor/Accountant
KPMG Deutsche Treuhand-Gesellschaft AG31
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Assets
Cash 9,848.9 11,131.7 10,506.4
Receivables N/A N/A N/A
Inventories 10,291.5 9,394.6 10,275.3
Total Current Assets 57,183.7 57,247.7 54,505.4
Total Assets 144,270.5 146,119.0 142,480.7
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BMW Annual Report 2010
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BMW Annual Report 2010
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BMW Annual Report 2010
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Liabilities
Long Term Debt N/A N/A N/A
Current Liabilities 53,185.6 52,912.3 55,375.0
Total Liabilities 113,658.4 117,576.9 113,905.9
Equity
Common Stock Equity 30,612.1 28,542.2 28,563.5
Shares Outstanding (thou.) 601,995.2 601,995.2 601,995.2
B1-1 Auditor/Accountant38
Deloitte & Touche LLP
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Assets
Cash 21,061.0 22,679.0 14,053.0
Receivables 16,896.0 7,518.0 7,918.0
Inventories 12,125.0 10,107.0 13,195.0
Total Current Assets 62,340.0 59,247.0 44,267.0
Total Assets 138,898.0 136,295.0 91,039.0
Liabilities
Long Term Debt 3,014.0 5,562.0 29,018.0
Current Liabilities 47,157.0 52,435.0 75,608.0
Total Liabilities 102,718.0 115,046.0 176,599.0
Equity
Common Stock Equity 25,789.0 21,249.0 (85,560.0)
Shares Outstanding (thou.) 1,500,137.0 N/A N/A
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2010 GM Annual Report
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Industry Norm
BMW GM UQ Median LQ
Solvency
Quick Ratio .76 .87 1.1 .8 .3
Current Ratio 1 1.13 2.2 1.6 1.2
Current Liabilities to Net Worth (%) 76.96 780.80 51.7 78.2 125.7
Current Liabilities to Inventories (%) 420.02 341.40 84.2 114.7 193.3
Total Liabilities to Net Worth (%) 161.49 316.48 70.7 105.9 248.0
Fixed Assets to Net Worth (%) 30.40 57.10 22.1 26.4 63.1
Efficiency
Collection Period (days) 17 29 18.6 30.9 41.3
Sales to Inventory 7.21 5.77 11.6 7.3 4.2
Assets to Sales (%) 161.35 247.18 35.7 48.3 58.1
Accounts Payable to Sales (%) 7.63 59.17 3.1 5.7 10
Profitability
Return on Sales (%) 8.07 (5.49) 6.2 2.2 .8
Return on Assets (%) 3.09 (2.22) 15.9 5.3 2.1
Return on Net Worth (%) 7.74 (72.39) 25.5 11.1 4.6
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Could not find more up to date info. Info from 2006-2007