News From the Auto Industry

Cut number of business systems used by engineers from 250 to 180. Have cut to 114 and now seeks to reduce by 20% a year

Challenge: Lower costs, improve quality and increase appeal of its cars, to end a 30-year decline in market share—and increase profitability

Business: GM is the world’s largest auto manufacturer. It produces cars and trucks under the Chevrolet, Buick, GMC, Hummer, Oldsmobile, Pontiac, Saturn and Cadillac brands in the U.S. Abroad, its brands include Saab, Opel and Vauxhall in Europe, and Holden in Australia; it has a 49% stake in Isuzu Motors, and 20% stakes in Fuji Heavy Industries (Subaru), Suzuki Motor and Fiat Auto (Alfa Romeo, Lancia). Additionally, GM is taking a 42% stake in South Korea’s Daewoo Motor. GM also owns Hughes Electronics, GMAC (GM’s financing company), GM Locomotive and Allison Transmission

Financials in 2001: $177 billion in sales, $601 million in net income, 0.3% net profit margin

Chief financial officer: Ralph Szygenda

Reduce time required to move a new design into production. Sought to cut time from 42 months in 1997 to 24 months in 1999. By 2001, GM hit 18 months and now seeks reductions of about one month a year

Baseline Goals: