Powering ahead General Motors

POWERING AHEAD POWERING AHEAD

As one of the world’s automotive giants, General Motors needs little introduction. And since being floated on the stock exchange in 2010, the company has gone from strength to strength. Industry Europe looks at its global presence, most recent models and the importance it places on strong supplier relationships.

General Motors (GM) is a truly global player in the automotive industry. There can hardly be a person out there who is not familiar with at least some of its leading brands: Opel, Vauxhall, Buick, Cadillac and Chevrolet to name just a few. It currently employs over 200,000 people in 396 facilities across six continents.

Although the company’s history goes all the way back to 1897, the biggest milestone in recent years came in 2010 when GM completed the world’s largest initial public offering. This has set in train a new period of prosperity and growth, following its filing for bankruptcy in 2009. The ‘New GM’ which emerged from this has identified five key principles to guide its future strategy. These are: Safety and Quality First; Create Lifelong Customers; Innovate; Deliver Long-Term Investment Value; and Make a Positive Difference. Global presence and investments

The new GM is a smaller, leaner company than its predecessor. It has a more focused network of 4500 dealers. It continues to grow globally, with more than 70 per cent of its sales now coming from exports. Its top five markets in terms of sales are now China, the US, Brazil, the UK and Germany. It also has significant equity stakes in major joint ventures in China including SAIC-GM, SAIC-GM-Wuling, FAW-GM and GM Korea.

GM’s facilities throughout the world are equipped with the latest technologies to enable it to follow its five core principles. Each of its brands – Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling – has its own manufacturing facilities in strategic locations and it regularly invests in these to ensure they are ahead of the curve when it comes to manufacturing.

For example, in July this year it broke ground on a new complex of buildings at its Opel manufacturing headquarters in Rüsselsheim, Germany. This investment totals almost €245 million and will serve to increase the plant’s output with the addition of new models. Opel already builds four variants of its Insignia model here, plus the Zafira Tourer that begins production in 2015. Two future vehicles that are to be added to the plant’s production portfolio by the end of the decade will be a brand-new model and another variant of the Insignia, the details of which are still to be announced.

New models launched for Opel

For a company like GM to remain at the forefront of the global automotive industry, constant innovation is a must. The company is continually launching new models on the market, or upgrades of existing ranges. For

example, at last year’s Geneva Motor Show (2013) it introduced its ADAM Rocks model – a more rugged version of its Opel brand’s newest city car, the ADAM.

Like other ADAM models, the ADAM Rocks is equipped with electrical systems such as IntelliLink navigation, ESP, parking assist and internet connectivity devices. The EMC centre ensures there is no interference between different electronic systems by sending frequencies at the car that would typically cause a fault in the systems.

At this year’s Geneva Motor Show the ADAM Rocks was again showcased, alongside the new ADAM S version. Featuring a 110kW/150 hp, 1.4-litre Turbo Ecotec engine, sports-tuned suspension, OPC braking system and distinct ‘Red ‘n’ Roll’ styling, the ADAM S is yet another highlight of Opel’s small car family.

Another new model debuted by Opel at Geneva was the Astra OPC Extreme. Powered by a 2.0-litre, direct-injected four-cylinder turbo that makes more than 300 horsepower, it is one of Opel’s sportiest cars yet. Based on the cup-racing version of the Astra OPC, it is a version of the two-door Astra GTC. It has been slimmed down, dropping 220 pounds from the OGTC’s 3417-pound claimed weight. This was achieved by using aluminium fenders and a carbon-fibre hood, roof, suspension cross braces, front spoiler, engine cover and rear wing. Furthermore, in order to highlight its racing pedigree it has been fitted with a full roll cage and Recaro racing seats with six-point belts.

Another important launch for GM’s Opel at Geneva was its OnStar technology, representing the next level of vehicle connectivity. According to Opel CEO Karl-Thomas Neumann, “OnStar and Opel will make driving in Europe safer and more relaxed from 2015. With OnStar 4G/LTE, Opel drivers will enjoy high-speed mobile connectivity, and with this we take a major step towards realising our vision of connectivity – the Opel Monza Concept that we presented last autumn.” OnStar is the leading brand of connected safety and security solutions, value-added mobility services and advanced information technology.

The Ecotec – an engine revolution

As mentioned above, the new ADAM S model is one of the latest GM cars to be fitted with the company’s new modular Ecotec engines (also introduced at Geneva). The new generation of Ecotec small-displacement engines is set to streamline GM’s global powertrain portfolio with a modular architecture that broadens its adaptability to global markets and reduces manufacturing complexity.

The new engines were developed for GM’s global vehicle portfolio and will power many of the company’s highest-volume small cars and compact crossovers – including the next-generation Chevrolet Cruze specifically tailored for China, which launches in 2014 as a 2015 model.

By 2017, more than 2.5 million new Ecotec engines are projected to be built annually in at least five manufacturing locations around the globe: Flint, Mich. (U.S.); Shenyang, China; Szentgotthárd, Hungary; Toluca, Mexico; and Changwon, South Korea. The Flint facility alone represents an investment of more than $200 million in technology and tooling to support the engines’ production.

The importance of suppliers

The long-term relationships GM has built up with its key suppliers over the years has been crucial to its success. In March this year the company recognised 68 of its best global automotive suppliers during its 22nd annual Supplier of the Year awards ceremony.

This is a prestigious honour, as fewer than 1 per cent of GM’s suppliers around the world receive the award. Winners are recognised for delivering innovative technology, superior quality, timely crisis management and competitive, total-enterprise cost solutions. In addition to the Supplier of the Year awards, GM also honoured four suppliers with its Overdrive Award, recognising those who have gone the extra mile to help it achieve exceptional results.

European winners of the Supplier of the Year Award were: Behr-Hella Thermocontrol GmbH; Bühler Motor; EMS-CHEMIE AG; GRIMALDI GROUP; GROB – WERKE GmbH & Co. KG; Höegh Autoliners; L&L Products; MANN+HUMMEL GmbH; Müller – Die lila Logistik AG; Sogefi Engine Systems; SPAL Automotive; and TMS – Turnkey Manufacturing Solutions. MANN+HUMMEL was also a recipient of the Overdrive Award.

Grace Lieblein, GM vice-president, Global Purchasing and Supply Chain, explained the importance of showing appreciation for its suppliers’ efforts: “Our suppliers play an important role in helping GM deliver compelling vehicles to our customers. Supplier of the Year winners have outstanding track records for consistently meeting our business needs while also supporting our cultural priorities.”

Innovating for the future

Looking ahead, GM will be focused on innovation in several key areas. The first of these is autonomous driving – something the company believes we are closer to achieving than we may believe. It has already made steps in this direction with its Chevrolet EN-V (Electric Networked-

Vehicle). With this, it has combined safety features such as adaptive cruise control and side blind zone warning with advanced communication technology to demonstrate how a fully autonomous driving experience can change the way we think about driving for the future.

Another focus will be on the promotion of emission-free driving through the creating of ever-more efficient electric vehicles (EV). With increasing pressure from environmental lobbyists and the limited availability of petroleum, there is a growing customer interest in petrol-electric hybrids and purely electric vehicles. GM is ready to meet increased demand for these technologies. In 2013, for example, it launched a Chevrolet Spark Electric Vehicle. It is currently partnering with its top suppliers and investing in promising technologies, through its GM Ventures business unit, to develop new technologies that can be brought to market quickly.

Another way in which automakers can help to reduce our global dependence on petroleum is through the development of alternative technologies such as hydrogen fuel cells. These have the potential to support family-sized and larger vehicles, providing more passenger or cargo-carrying capabilities. They also offer the ability to travel longer distances at higher speeds, great fuel economy and full-time zero emission operation. GM’s ‘Project Driveway’ fuel cell vehicle demonstration used a fleet of over 100 fuel cell electric Equinoxes to help customers to accumulate over two million miles. It will continue to work on improving and developing fuel cell technology. n