General Motors
USA
Detroit
MI 48232-5170
Top managers:
Akerson Daniel (Daniel F. Akerson)
Mary Barra
Content
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Assets
Performance indicators
2024: GM JV sales crash in China
2023
6th place in car sales in the world
In the list of companies with the largest R&D costs
For Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)
2022
Internet-Connected Car Market Share - 9.5%
Based on Q1 2019 to Q4 2022 data
Loss of $657 million due to withdrawal from the Russian market
The curtailment of activities in Russia turned into losses for General Motors (GM) in the amount of $657 million in 2022. Such data are given in the financial report, which the American automaker published on January 31, 2023.
General Motors revenue in 2022 reached $156.74 billion. This is 23.4% more than the result for the previous year, when the company's sales amounted to $127 billion. Net profit amounted to $9.93 billion against $10.02 billion in 2021. For this indicator, negative dynamics was recorded at the level of 0.8%.
2021
Toyota for the first time displaced GM from 1 place in car sales in the United States
In 2021, Toyota for the first time in history took 1st place in car sales in the United States. US car giant General Motors has lost the title of best car seller in America for the first time in 90 years.
Toyota took first place, selling more than 2.3 million cars in 2021, increasing sales by 10%.
GM said its sales, down 13%, were hit by widespread semiconductor shortages that plague the entire auto industry.
The number of cars sold is 6,294,385
2020
Global Car Market Share - 8.9%
GM's share of the global automotive market was 8.9% (Nikkei data). Read more here.
General Motors capitalization for November
Business in Russia
General Motors Auto
Main article: General Motors Auto
History
2024
Lay off 1,000 IT professionals
On August 19, 2024, the American automobile corporation General Motors announced a reorganization that will lay off about 1,000 full-time employees around the world. This measure is designed to simplify the structure of the company and increase the efficiency of operations.
According to CNBC, the cuts will primarily affect IT professionals. We are talking about the division of software and services. It covers a wide range of areas, including infotainment systems, the OnStar brand and new areas such as subscriptions and other software features. As part of the reorganization, in particular, approximately 600 jobs will be abolished on the General Motors technology campus near [[]] a. Dismissed employees will receive monetary compensation and other payments due.
 | As we build the future of General Motors, we have to simplify the structure for the sake of efficiency and productivity, and prioritize the investments that will have the greatest impact on the business. Therefore, we are reducing the number of employees in some divisions. We are grateful to all those who helped build a strong foundation that allows the company to move forward, the automaker said in a statement. |  |
As of the end of 2023, the total number of General Motors personnel was 76 thousand people, including 53 thousand full-time employees in the United States. Thus, after the reorganization, the number of workers on a global scale will decrease by 1.3%. General Motors emphasizes that the layoffs are aimed primarily at optimizing the work of the software and services division after executive vice president Mike Abbott left it for health reasons. [1]
Recall of defective cars due to metal-shooting airbags
On January 29, 2024, Toyota and General Motors initiated a large-scale recall program for cars of various models. The problem is related to defective airbags, which can explode, hitting people in the vehicle with sharp metal fragments. This can cause serious injury or even death to the driver and/or passengers. Read more here.
2023
Sacking IT Professionals Over Lack of Money for Digital Development
On August 23, 2023, General Motors announced a restructuring aimed at streamlining operations and reducing costs. This initiative provides for the dismissal of hundreds of IT specialists in Arizona, which is due to the lack of funds for the development of digital technologies.
The IT-Innovations Center, which opened in 2014, is located in Chandler. Employees of this site are engaged in the development of web technologies, client applications, various automotive systems, etc. As part of the reorganization program, IT operations of this unit will be discontinued. At the same time, approximately 940 employees involved in the relevant area will lose their jobs.
| | Today we announced a difficult decision to cease operations at the IT-Innovations Center at the end of October 2023. This decision was not easy, but it will help optimize our operations and increase efficiency, "wrote Stacy Lynett, General Motors Vice President for Information and Digital Technologies. | |
The reorganization will allow the company to focus on "core areas of growth." What exactly is in question, General Motors does not specify. Those employees who fall under the reduction can apply for employment in other divisions of the company. General Motors promises to provide comprehensive employment support. Employees who have worked for the company for at least one year will be eligible for severance pay.
Company spokesman Kevin Kelly confirmed the cuts, saying some of the center's vehicle software staff would maintain positions. Three other General Motors IT centers are in Warren (Michigan), Austin (Texas) and the suburbs of Atlanta: they will continue to operate.[2]
Dismissal of 6% of employees in an attempt to save $1 billion
In early April 2023, it became known that the American automobile corporation General Motors (GM) intends to reduce the number of personnel by about 6%. This is necessary to reduce spending in a crisis and global economic uncertainty.
According to Bloomberg, as part of the reorganization, the company around the world will relieve approximately 5,000 employees from their posts. It is assumed that this measure will save $1 billion only at the end of 2023. The reduction in the number of employees will be carried out according to a voluntary scheme, that is, in the form of care of their own free will. Those employees who express a desire to leave the company will receive generous monetary compensation, payment of health insurance, various bonuses and assistance in employment in a new place.
| | We are ready to pay for voluntary care to employees of pre-retirement age or to those people who want to change their career or lifestyle. At the same time, we are doing everything possible to try to avoid forced layoffs. And I think we're in a position where we can do that, "GM CFO Paul Jacobson said at the Bank of America conference. | |
This initiative is part of the group's comprehensive program to improve the financial situation and optimize the business structure due to changed market conditions. GM plans to spend about $35 billion on a large-scale upgrade of the lineup in order to abandon internal combustion engines in favor of all-electric power plants. Around 30 such vehicles are expected to be in the company's portfolio by 2025, many of which are scheduled to be shipped internationally.[3]
2022: Ultium Cells launch for $3.2 billion
On August 31, 2022, LG Energy Solution, the main partner of General Motors in the production of traction batteries for electric vehicles, announced the start of production of such batteries at a $3.2 billion plant in Ohio. The joint venture is called Ultium Cells. It is the first of four plants planned to be built in the U.S. in collaboration with GM. Read more here.
2021
Plan to invest $3 billion in electric vehicle production in Michigan
In December 2021, it became known that General Motors Co. plans to invest more than $3 billion in the production of electric vehicles in Michigan.
The automaker plans to convert the Orion Assembly plant in suburban Detroit to make electric vehicles and plans to build a battery plant in conjunction with LG.
Creation of a division for the production of electric delivery vehicles
In mid-January 2021, General Motors launched a new division and brand BrightDrop, which will create a full-fledged electrical ecosystem of cars and delivery vehicles. The company has already allocated about $800 million to transform its CAMI assembly plant in Ontario (Canada) into an electric vehicle plant . Read more here.
2020
Refusal to invest $2 billion in Nikola after investor fraud scandal
On November 30, 2020, General Motors (GM) announced that it would not invest in Nikola Motor, which led to a collapse in the quotes of the novice electric car developer. Read more here.
GM bought a stake in Nikola
On September 8, 2020, General Motors announced the purchase of an 11% stake in Nikola to help the electric truck manufacturer launch the first commercial product. The cost of the share acquired by GM is about $2 billion. Read more here.
2019
The company finally leaves the Russian market
AvtoVAZ bought out a 50 percent stake in a joint venture with General Motors - GM-AvtoVAZ and became the owner of a controlling stake. Read more here
Creation of a factory with LG Chem for the production of batteries for electric vehicles
In early December 2019, General Motors and LG Chem announced the creation of a $2.3 billion lithium-ion battery plant for electric cars of the American concern. Read more here.
2017: Plans to launch robotaxi service
At the end of November 2017, General Motors (GM) announced the timing of the launch of the robotaxi service. Other automakers have plans for similar projects, but GM has a chance to pioneer this market. During a conference with investors, GM management said that by 2019, a commercial service for transporting passengers using self-driving cars will be launched in the United States. By that time, the company intends to complete testing of self-driving machines, which by November 2017 are being carried out in a number of American cities.
General Motors main article Robotaxi
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1961: Removable roofs for Buick convertibles
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Information technology in the company
Avoid IT outsourcing
In July 2012, it became known that General Motors CIO Randy Mott plans to do what no CIO had done before - almost completely abandon outsourcing and return all of the company's IT activities to its walls, InformationWeek reported.
At the moment, only 10% of GM's IT tasks are solved by the company's own employees. The remaining 90% - from data center maintenance (DPC) to new application development - is done by third-party providers including Hewlett-Packard, IBM, Capgemini and Wipro. Over the next 3 years, Mott plans to mirror the situation and make sure that 90% of the tasks are solved by GM employees, and only 10% are outsourced.
This will force GM to hire a ton of developers, project managers, database and business intelligence professionals and other professionals. Mott plans to place them in three centers, each of which will be located in the United States. At the same time, GM contractors risk losing contracts, some of which are estimated at $3 billion in annual service.
These transformations are only part of the plan of the newly minted CIO, which joined GM in February 2012 after performing similar functions at Wal-Mart, Dell and HP.
Meanwhile, for GM, the world's second automaker, going through hard times, Mott's plan carries high risks. The company's factories, supply chains and accounting are extremely dependent on information technology and often use data from around the world in real time.
However, the green light that Randy Mott was given by his boss, GM Chief Executive Officer Dan Akerson, means how badly the company needs better technology solutions, and that it is ready for risk for the sake of such solutions.
Mott's action plan at GM is similar to the strategy he took at HP, Dell, and Wal-Mart (while working at Wal-Mart, he received the year's top executive in 1999). The main goal of the strategy is to launch innovative IT solutions faster. Mott does not believe GM is capable of doing so with the help of third-party vendors. "When the management says," Come on, "we begin to form a contract, but not the implementation of the project itself, unfortunately," Mott criticizes the current model of work. In his opinion, IT projects fail because they take too long to start. "Every past month, every quarter means a decrease in ROI (ROI)," Mott is sure.
In addition to the above, Mott's plan includes consolidation of data centers, applications and storage systems (DSS) for improved control of General Motors production and client data. Instead of cutting the IT budget, the IT chief relies on performance and speed of implementation.
The data center consolidation plan includes reducing the number of centers from 23 to two, both of which will be located in Michigan. During the consolidation process, Mott plans to replace legacy servers, DSS, and network equipment with more efficient, state-of-the-art solutions. The application consolidation plan includes reducing the number of currently used GM 4 thousand programs per 40%. In turn, the plan for DSS consolidation is to consolidate over 200 disparate storage into a single infrastructure.
Mott's measures, however, are not super popular, InformationWeek notes. At HP, for example, its strategy has displeased for the reason that business groups remained vulnerable during its rapid implementation. In GM, discontent will be among everyone: employees who are unlikely to like that they will be deprived of familiar applications, and managers who will be assigned new responsibilities.
Mott's strategy is absolutely extraordinary for GM, InformationWeek emphasizes. The company has always depended on external outsourcing companies and relied on them. So, in 1984, she acquired Electronic Data Systems (EDS), which later assumed the task of providing all GM IT services. This company is now owned by HP. General Motors is more dependent on outsourcing than any other automaker - the rest of the companies on average give 30% of IT tasks to contractors[4].
Collaboration with HP
In October 2012, General Motors announced an agreement with HP on a number of service and software projects for a period of several years. One of the points of the agreement assumes that 3 thousand HP employees will go to the staff of the automotive corporation. The report clarifies that the employees making the transition have already been involved in the projects of General Motors[5] moving[5].
General Motors expects that agreements with HP will allow it to accelerate the transformation of its IT by increasing the speed of innovation and reducing the cost of current internal IT projects.
At the time of the announcement, third-party contractors solve almost 90% of its IT problems. In the future, by expanding its own IT staff, this figure is planned to be reduced to 10%.
As part of the new strategy, General Motors announced the opening of new innovation centers of its own in Austin (Texas) and Warren (Michigan). In the near future, the company plans to announce the creation of two more centers, General Motors said in a statement.
In September 2012, it was reported that as part of a new "anti-outsourcing" strategy, General Motors plans to attract a total of about 10 thousand to the staff. IT professionals. The company expected that such a number of employees would be hired within 3-5 years.
Other planned changes to the IT structure at General Motors also included a reduction in the number of data centers from 23 to two, a 40% reduction in the number of 4,000 applications used, and the consolidation of more than 200 disparate DSS into a single infrastructure.
The stock market reacted positively to the agreements between HP and General Motors: after the statement made, the shares of both companies rose slightly in price following the trading results.
There are still few examples of the almost complete departure of large companies from IT outsourcing in the market. In Russia, for example, Sberbank is actively striving for independence from third-party contractors.
GM creates' dream IT department'
GM Chief Information Officer Randy Mott, who back in 2012 announced a complete rejection of outsourcing and the transition to the classic model of servicing the company's IT infrastructure, spoke in January 2013 about progress in creating "the best IT department in the industry."
According to an ambitious top executive, the work GM will offer its specialists will be "better in the IT industry." GM plans to open four IT-Innovations centers in the United States, where thousands of employees will work. Interviewing candidates will begin in the second half of January 2013.
The ambitious Chief information officer of General Motors believes that by eliminating HP's autorcing and service, he will be able to create the best IT department in the industry. It will employ 10 thousand specialists in four innovative centers in the United States
Meanwhile, GM has already had a strained relationship with some companies due to headhunting attempts. Thus, the automaker has already exchanged mutual barbs with HP on this matter, and HP until recently was GM's main IT service partner. Because of GM's efforts to hire 18 managers from Hewlett Packard, the latter even filed a lawsuit against former partners in Texas District Court.
It is known that one of the innovation centers will be located in Rosewell, Georgia, near Atlanta. The number of employees of this center alone will be about 1 thousand. IT professionals. The other two centers will be located in the cities of Austin, as well as Warren (Michigan).
The location of the fourth center has not yet been named. GM's strategy at the same time is to geographically diversify the centers so as to have access to the entire labor market of the country. In addition, the requirement for choosing a place is the nearest location of at least 10 large university centers.
Recall that for a long time IT GM was served by EDS, which was acquired by HP in 2008, and at the moment the automaker under the leadership of Mott has headed for building its own IT division of up to 10 thousand people. When GM just announced plans to transfer IT service to an insourcing division, HP announced the possible transfer of about 3,000 of its employees to work at GM.
Mott condemned HP's actions. GM is "looking for the best and most talented people in the industry," he said. He believes that talents need to be given the way, and such employees themselves can decide in which company the conditions most favor their further development.
Notes
- ↑ GM lays off more than 1,000 salaried software and services employees
- ↑ GM announces closure of Arizona IT Innovation Center, resulting in 940 job cuts
- ↑ GM Cuts 5,000 Salaried Jobs Through Voluntary Buyouts
- ↑ Exile: General Motors' IT suppliers forfeit multibillion-dollar contracts
- ↑ 5,0 5,1 [http://hh.cnews.ru/top/2012/10/19/3000_sotrudnikov_hp_perehodyat_na_rabotu_v_general_motors_507051 3,000 HP employees are
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