Rare product recalls Recalls are inevitable for any automaker due to a complex manufacturing process, thousands of parts and sophisticated software used. General Motors is no exception, the company had a large recall in due to a software defect.
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Nonetheless, the company has one of the lowest recall rates in the U. Weaknesses 1. Dependence on U. Figure 3.
Ford receives only By relying on the U. Reliance on pickup trucks and SUVs for profit While General Motors offers a balanced portfolio of small, mid-sized and large cars, crossovers, SUVs, and trucks, it mainly relies on large vehicles such as SUVs and pickup trucks to generate most of the profits. This helped GM to generate huge profits. Opportunities 1. Low fuel prices are increasing the demand for pickup trucks and SUVs Currently, fuel prices are the lowest in a decade.
Such situation has encouraged consumers to buy big fuel-inefficient vehicles such as SUVs and pickup trucks. Timing and frequency of the new model releases Frex market share of the automotive companies is significantly impacted by the tading and frequency of new model releases. Historically, the new models have tended to have major upgrades every 4 or 5 years with only minor modifications in between. However, due to the rising consumer expectations in relation to in-car technology and the competitive nature of the industry, there is an argument to release the upgraded models more frequently.
General Motors is well-positioned to be able to do this. Demand for autonomous vehicles Currently, nearly 33 companies are working on autonomous vehicles. GM is also working on introducing its autonomous vehicles and expects to launch them by The company has been purchasing self-driving technology startups in order to acquire the technology and patents.
Here's the buyout GM offered before announcing 14,000 job cuts
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The carmaker previously said that involuntary layoffs would follow if there were not teading takers. Roughly 5, salaried tmc and 6, hourly employees will be laid off, he confirmed. Half of the hourly workers are in Canada with the other half in the U. Salary and benefits GM is allowing some employees who took the buyouts to leave as early as this coming Saturday with an official last day of Jan. Executives could also leave in December with an effective last day of Feb.