1859784

Total Vehicle Sales: 

Total Vehicle Sales

U.S. GDP Growth: 

U.S. GDP Growth

Unemployment Rate - United States: 

Unemployment Rate - United States Percent 2000: 4.4%

U.S. GDP Deflator: 

U.S. GDP Deflator

Brave New Business CycleReaganomics: 

Brave New Business Cycle Reaganomics More open economy Just-in-time production Financial market deregulation More flexible labor markets Deregulation of trucking, airlines, railroads, energy production, telecommunications

Slide9: 

CPI: Total, Commodities and New Vehicle Source: Bloomberg

Auto Industry Employment: 

Auto Industry Employment

Internet Revolution: 

Internet Revolution More promise than results Initial focus on B2C e-GM, GMBuyPower, OnStar Rapidly shifting to B2B Estimates GM could save as much as $14.5B annually – roughly $1,500 per vehicle JV with Commerce One – GM TradeXchange

Sources of Cost Savings: 

Sources of Cost Savings Lower costs from global procurement Economies of scale Lower inventory costs Carrying costs Lower costs associated with defects – lean production More opportunities for customization

Cooperation vs. Competition: 

Cooperation vs. Competition Important to get fast start Competition with Ford diluting potential gains Agreed to a create single global electronic market DaimlerChrysler agreed to join Inviting other auto companies Combined purchases of $250B annually Suppliers purchase additional $500B Unparalleled opportunities for cost reduction

Race for Global Leadership1998 Global Sales/share : 

Race for Global Leadership 1998 Global Sales/share 15.6% 15.4% 10.4% 9.2% 8.6% 8.4% 4 Million Club (Million)

Slide17: 

Volume Growth and % Change Developed vs Developing Countries (vol in millions) + 14.8% + 41.1% + 10.8% + 90.2%

Slide18: 

Total Global Vehicle Sales (1991 - 2009) Developed vs Developing Countries 16.6% 83.4% 20.5% 79.5% 30.9% 69.1% (Millions)

Slide19: 

Growth Share in the Next Decade (Total Growth : 14 Million units)

Slide20: 

Light Vehicle Capacity by Region (000)

Summary: 

Summary Consolidation of the industry underway Daimler/Chrysler, Renault/Nissan Ford/Mazda/Volvo/Jaguar GM/Saab/Suzuki/Isuzu/Subaru Fiat? Mitsubishi? Peugeot? BMW? Honda?