In the face of market competition, how will GM transform itself?
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Editor’s note: The automotive industry is facing a new round of change. More and more people are focusing on new car companies such as Tesla, Xiaopeng Motors and Weilai. For traditional car companies, the market As it becomes narrower and more competitive, GM, an incumbent car company, frequently sends news of job cuts and factory closures. What is the current situation of GM? How is it transforming itself? What new business growth points will there be in the future? This article will answer one by one for you. This article was originally published on Market Mad House by Daniel, titled: Is GM Doomed to Oblivion?
At present, GM is the only large automaker in the United States that has not joined an important international alliance, which is not a good thing.
Italian automaker Fiat Chrysler is communicating with France’s Peugeot Citroen Group on the merger and will become a strong competitor to GM in the future. At the same time, cooperation between Ford and Volkswagen, the world’s largest automaker, is growing.
In contrast, GM is exiting the arena of international relations cooperation. In 2017, GM sold its Opel and Vauxhall to Peugeot Citroen Group.
In the increasingly global automotive industry, GM has become a car company focused on the US market, which may put GM at a disadvantage in market competition.
Are General Motors going bankrupt?
Currently, GM is trying to improve the situation through a large-scale reorganization. According to the NBC Business Channel, General Motors laid off 14,000 employees and closed seven factories in 2019.
In addition, according to USA Today, General Motors plans to lay off 814 people at its assembly plant in Hamtramack, Michigan. GM is laying off employees to restructure its factories and produce electric vehicles.
However, the Detroit Free Press pointed out that some of General Motors’ business is growinglong. GM’s GM Defense is one of three finalists for a $ 155 million order that will make 2,065 infantry fighting vehicles for the US Army. The infantry fighting vehicle is an armored off-road vehicle that can transport soldiers on the battlefield.
Is GM growing?
GM infantry fighting vehicles are modified from a Chevrolet Corolla ZR2 mid-size pickup.
In addition to GM Defense, there are Oshkosh Defense, Flyer Defense, Science Applications International, Polaris Government and Defense Company (Polaris Government and Defense) also participated in supplier competition for this infantry fighting vehicle order. GM Defense’s future plans include manufacturing electric vehicles for the military.
In addition to defense, General Motors plans to invest $ 1 billion in manufacturing new Chevrolet Colorado and GMC Canyon mid-size pickup trucks in Wintersville, Missouri. According to the Detroit Free Press, GM plans to spend $ 500 million to provide suppliers with tools and machinery to support the Wintersville plant.
Pickups are critical to the future of General Motors. The best-selling pickup trucks in the United States are the Ford F-Series and Dodge Ram pickups. According to relevant media data statistics, from January to September 2019, Ford sold 661,574 F-series pickups and Fiat Chrysler sold 461,115 Dodge Ram pickups.
It should be noted that the third best-selling pickup truck in the United States is GM’s Chevrolet Silverado pickup. Between January and September 2019, GM sold 412,259 Chevrolet Silverados.
In today’s auto market, GM needs to upgrade pickups in order to survive and make money. Of particular importance is the need for GM to find new ways to market its pickup trucks to the general public in the United States.
Is GM making money?
The answer is yes, GM is working