Pest Analysis Of General Motors In China

Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.

Superchargers enable owners to travel for free between cities. Currently, Tesla has established 164 supercharger stations, including 105 in North America, 50 in Europe, and 9 in Asia. The comparison between the station numbers of America and China is more dramatic, which are 104 and 2 (Beijing and Shanghai), respectively. In-auto-news point out that Tesla sets the target sale at 5,000 in China’s market in 2014, which is 30 percent of the expected total global sale. Therefore, the only two superchargers, only about 1 percent of the total number, may restrict on the users experience in China, and may also have negative effects on the market promotion in other cities of China (Tesla Annual Report, 2014).

Across the world and for years governments have promoted the usage, production, and purchasing of electric vehicles. The first big push for electric vehicles was in 1998 in the state of California with the mandate that stated, “ a small percentage of vehicles sold after 2000 [ must have] zero emissions”( Baumgartner et Gross 35). This pushed many small and large vehicle companies to begin to look towards producing hybrid and electric vehicles. Another big push for electric vehicles in the United States was in 2005 when soon to be President Barack Obama advocated that” the United States [would] have one million electric vehicles on the road by 2015” (Barkenbus 56). Despite this goal never being met, without a doubt it promoted and furthered electric vehicles. Outside of North America in Europe, electric vehicle incentive is also prominent. Writing in October of 2000, Jack Barkenbus states “France is likely to be at the forefront of advocating electrical vehicle usage because of [their] nuclear power” (Baumgartner et Gross 35). This prediction was correct France now offers recharging services for electric vehicle owners. Another European country offering an incentive for purchasing electric vehicles is Switzerland. “Switzerland rewards individuals who take part in [electric vehicle promotion] by offering direct subsidies when buying a car”(Baumgartner et Gross 36). All of this incentive and promotion has been worthwhile, writing in 2017 Jack Barkenbus states that, “thirty percent of all new cars sold in the last quarter of

General Motors is one of the most highly decorated American car manufacturers in the world. Winning top honors from the Global Supply industry (Awards). General Motors earns countless awards throughout the brands of the company year after year. Founded in 1897 by William Durant, General Motors is one of the world’s largest car manufacturers. With Mary Barra’s leadership, General Motors produce cars, trucks, and hybrids. GM owns 18 brands, but their most famous makes are Cadillac, Chevrolet, Buick, and GMC (GM Profile). The purpose of this paper is to pinpoint General Motor’s strengths, weaknesses, opportunities, and threats.

In the upcoming three years, Tesla introduced their Model X, which is a SUV, and unveiled the Model 3, which started at the price of $35,000 and targeted the mass market. However, the Chinese government was strict in regulating all foreign companies entering into the Chinese economy. Many foreign companies can have a hard time making deal with local government officials. One of the biggest problems for Tesla was in 2014, which 45% of Tesla’s Model S were still unregistered with local authorities. There were also some legal issues such as, China’s laws can be ambiguous with unclear restrictions and regulations; therefore, Tesla will face strict environment laws when manufacturing their products in China. The Chinese have become more aware of the environment and the pollution arising, which is causing doubts in the car industry. Additionally, the price of gasoline is going up while the Chinese are still trying to project their status and electric cars are becoming more popular. However, despite the facts of these issues, Tesla may be a bit more expensive than predicted but families are still willing to pay the price to improve their social

In recent years, the global recession has made a huge impact on the company cash flows and its financial situation. To sustain as a global leader in the highly competitive automobile industry the GM needs to have its own strategic plan to produce the next generation of vehicles and it has got no time to delay. This is a crucial time for automobile industry with many threats, but opportunities as well. The company has to choose the best "opportunities" to overcome the "threats" and "weaknesses" using its "strengths". The next several years will redefine

Recently there have been doubts concerning the survival of General Motors. These doubts stem in part from the firm’s unawareness of the automotive industry’s external business environment. This includes the consumer’s view of current events and economic trends. There are also key issues such as the emergence of technology that are related to the automobile industry that are covered by trade publications.[i] Doubts also stem from problems associated with G.M.’s internal business environment. These problems likely arose from the firm following the wrong generic strategy.

USA, UK and Europe. However, the demand has been rising steadily in India and China – both the world’s fastest growing economies. Thanks to Shanghai GM, a successful joint venture with the Chinese company SAIC, GM’s sales in China increased by 68 percent to 230,048 vehicles in

The electric car is not, by any means, a new concept. The electric car was first introduced in the 19th century, but as oil was more plentiful and much cheaper than electricity, the internal combustion engine came to the forefront of the transportation sector.1 Now, as oil reserves around the globe have reached the lowest since 1973 and gas prices the world over are soaring,1 the world has turned back to the electric car.1 The electric car was endorsed by the United States Government in 2009 as “a promising alternative to petroleum in the transportation sector”, and 2.1 billion dollars has been allocated to subsidies for battery and component manufacturers.3 Despite

As we know, General Motor (GM) is a famous American manufacture and distributes vehicle. It was founded in 1908 and led the global automotive industry for a long time.  Now, you can see a car and commercial vehicles which were produced by General Motor anywhere. GM produce, sell and provide service brands including: Chevrolet, Buick, GMC, Cadillac, Hummer, Holden, etc.  At present, GM's full range of models sold in more than 120 countries and regions, including electric cars, micro cars, heavy-duty full-size trucks, compact car and cabriolet. We have to say that GM’s success is attributed to its successful strategy.

Beginning with the PEST Analysis we can get a macro perspective on the trends. There has been a global

With the current trend of climate changes and rising oil prices it is believed that by 2020 five in every ten cars will be electric driven. The expansion of electric or hybrid vehicles could possible goes way beyond the expected just like the unexpected market rise for the Chinese bicycles. The market size for Chinese bicycles grew over 200 times the expected within a span of 10 years. The growth was something unexpected and greatly negated the earlier forecast that predicted a slow market growth. The same growth is likely expected for the new energy automobiles. For example, currently china records huge sales of new energy automobiles simply because the manufacturer sells the products at consumer friendly prices. Majority of its ultra-low priced electric vehicles trade at roughly $4000,

One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.

GEELY which is based in Zhejiang is a famous Chinese car company. However, GEELY is developing better and better. Hence the aim of this paper is to analyse GEELY and examine why this particular company has become more successful than other Chinese car companies.

The Chinese government is also aiming to put some millions of hybrid cars into use within China within the next few years. Seeing as how Honda is already