GME Multi-brand strategy.ppt.pptVIP

GME Multi-Brand Strategy Jonathan Browning, GME Vice President Sales, Marketing and Aftersales Overall European Market Observations Moderate global economic expansion underway heading into 2007 Western European growth is near-trend levels Industry demand a record 21.7 million units in 2006 Stable industry fundamentals for 2007 Segment growth at low-end and premium Industry wide negative Net Price Regulatory/policy pressures continue to drive costs GM Europe Turnaround GM Europe = 22% of GM’s global vehicle sales European turnaround program started in 2000 Balanced between structural cost reduction andrevenue/contribution margin increase Successful labor negotiations improved plant and workforce flexibility Headcount in Europe cut by 30% since 2000 (from 88,000 to 60,000 employees) Product portfolio completely overhauled Improved measured and perceived quality of vehicles Focused on revenue and margin improvement Increasing Sales in Total Europe 2006 Sales Results Record sales of +2 million vehicles Sales growth in Eastern Europe (+59%) Record sales volume for Saab (+10%) and Chevrolet (+16%) Saab volume up in all major markets Chevrolet Russia +67% Opel/Vauxhall – focus on profitable sales Zafira/Meriva #1 in monocab segment Astra #2 in compact segment Cadillac +22% vs. 2005 Aftersales net sales growth 6% GME Revenue and Aggregate ContributionMargin Development Contribution Margin and Structural Cost Benefits of Rebalancing Fleet Mix Astra GTC – Contribution Margin Case Study Design excellence, bold pricing and communications GTC Average Transaction Price is €21,200; €1,850 above 5-dr;€4,800 above predecessor 3-dr Strong conquest from Audi A3 as well as Golf and Focus Increased market share from 0.33% in 2004 to 0.42% in 2006 Increased volume from 68,129 cars in 2004 to 88,279 cars in 2006 Pressure From Premium Value Markets Eastward Sales Shift – Pressure on Margins Aggressively Pursuing Growth Opportunities in Russian Market GME Sales, Marketing and Afters