General Motors Company (GM): Business Model Canvas [10-2024 Updated]

In the rapidly evolving automotive industry, General Motors Company (GM) stands out with a robust business model that adapts to changing market dynamics. This post delves into GM's Business Model Canvas, highlighting key elements such as partnerships with suppliers for electric vehicle components, innovative value propositions that cater to diverse consumer needs, and a strong emphasis on sustainability through electric vehicle offerings. Discover how GM navigates the complexities of the market and positions itself for future growth below.

General Motors Company (GM) - Business Model: Key Partnerships

Collaborations with suppliers for EV components

General Motors has established significant partnerships with various suppliers to enhance its electric vehicle (EV) production capabilities. A notable collaboration is with LG Energy Solution, focusing on the production of battery cells through their joint venture, Ultium Cells LLC. In 2024, GM plans to invest approximately $7 billion in the Ultium Cells joint venture, which aims to bolster the supply of battery cells for GM's EV lineup.

Supplier	Investment (in billions)	Focus Area	Projected Output (in GWh)
LG Energy Solution	$7	Battery Cells	70+
Samsung SDI	$1.5	Battery Technology	20+
QuantumScape	$0.5	Solid-State Batteries	20+

Joint ventures in China for local market penetration

In China, GM operates several joint ventures, notably with SAIC Motor Corporation. These ventures are crucial for penetrating the local market, where GM sold approximately 1.2 million vehicles in the nine months ending September 30, 2024, capturing a market share of 6.8%. The joint ventures also faced challenges, including an equity loss of $0.3 billion in the same period due to intense competition.

Joint Venture	Partner	Market Share	Vehicle Sales (in millions)	Equity Loss (in billions)
SAIC-GM	SAIC Motor Corporation	6.8%	1.2	$0.3
Shanghai GM	SAIC Motor Corporation	5.2%	1.0	$0.5

Partnerships with tech firms for autonomous vehicle development

GM is actively collaborating with technology companies to advance its autonomous vehicle initiatives. A significant partnership is with Cruise LLC, which focuses on developing self-driving technology. In 2024, GM plans to invest an additional $1.3 billion into Cruise. Furthermore, GM has partnered with Microsoft to leverage cloud computing and artificial intelligence in enhancing its autonomous vehicle capabilities.

Technology Partner	Investment (in billions)	Focus Area	Expected Launch Year
Cruise LLC	$1.3	Autonomous Vehicles	2025
Microsoft	$0.5	Cloud and AI	2024

General Motors Company (GM) - Business Model: Key Activities

Manufacturing and assembly of vehicles and components

General Motors (GM) operates a comprehensive manufacturing network that includes 18 facilities across North America and several international locations. In 2024, GM produced approximately 4.5 million vehicles globally, with a significant focus on electric vehicles (EVs) as part of its transition to a more sustainable business model. The manufacturing process involves advanced robotics and automation technologies to enhance efficiency and reduce costs.

Metric	Value
Total Global Vehicle Production (2024)	4.5 million units
Number of Manufacturing Facilities	18 in North America
Investment in Manufacturing Technology (2024)	$10.5 billion

Research and development for electric and autonomous vehicles

GM is heavily investing in research and development (R&D) to accelerate the development of electric and autonomous vehicles. In 2024, GM allocated approximately $8 billion towards R&D activities, with a focus on battery technology, software development, and autonomous driving systems. The company aims to launch 30 new electric vehicles by 2025, targeting a production capacity of 1 million EVs annually by 2026.

Metric	Value
R&D Investment (2024)	$8 billion
Number of New Electric Vehicle Models by 2025	30 models
Target Annual EV Production Capacity by 2026	1 million units

Marketing and distribution of vehicles globally

GM employs a diverse marketing strategy to promote its vehicles in various global markets. The company reported total net sales of $139.7 billion for the nine months ended September 30, 2024, with a notable increase in its EV sales. GM's market share in the U.S. stood at 16.2% during the same period. The distribution network includes over 4,000 dealerships in the U.S. and partnerships with various international distributors.

Metric	Value
Total Net Sales (Nine Months Ended September 30, 2024)	$139.7 billion
U.S. Market Share (2024)	16.2%
Number of U.S. Dealerships	4,000+

General Motors Company (GM) - Business Model: Key Resources

Strong brand portfolio (Chevrolet, Cadillac, GMC, Buick)

The General Motors Company (GM) boasts a robust brand portfolio that includes well-established names such as Chevrolet, Cadillac, GMC, and Buick. As of September 30, 2024, GM's total net sales and revenue from automotive operations reached approximately $128 billion for the nine months ended, reflecting the strength of its brand offerings in the market.

Manufacturing facilities across multiple continents

GM operates manufacturing facilities in various locations around the globe, which are essential for its production capabilities. The company has reported significant investments in its manufacturing operations, with capital expenditures amounting to approximately $7.5 billion for the nine months ended September 30, 2024. The following table summarizes the production volume and key manufacturing metrics:

Region	Manufacturing Facilities	Production Volume (Units)	Capital Expenditures (Billions)
North America	Multiple Facilities	1,500,000	$5.0
South America	Several Plants	300,000	$1.0
Asia	Joint Ventures	1,200,000	$1.5
Europe	Multiple Plants	400,000	$1.0

Financial services through GM Financial

GM Financial provides essential financial services that support both customers and dealers. In the three months ended September 30, 2024, GM Financial reported total revenue of approximately $4.031 billion, showing a 10.7% increase compared to the previous year. The following table details GM Financial's key financial metrics:

Metric	Q3 2024	Q3 2023	Change (%)
Total Revenue	$4.031 billion	$3.641 billion	10.7%
Provision for Loan Losses	$298 million	$235 million	26.8%
Average Debt Outstanding	$110.4 billion	$101.9 billion	8.3%
Effective Rate of Interest Paid	5.6%	4.8%	0.8%

These financial services are integral to GM’s overall strategy, enabling the company to offer competitive financing options to its customers, thereby enhancing vehicle sales and customer loyalty.

General Motors Company (GM) - Business Model: Value Propositions

Wide range of vehicles catering to diverse customer needs

General Motors offers a broad portfolio of vehicles that includes sedans, SUVs, trucks, and electric vehicles (EVs). As of September 30, 2024, GM sold approximately 1.9 million vehicles in the U.S., maintaining a market share of 16.2%. The sales are driven largely by the popularity of full-size pickup trucks and SUVs, which account for a significant portion of GM's sales volume.

Commitment to sustainability with electric vehicle offerings

GM has made a strong commitment to sustainability, aiming to become an all-electric vehicle manufacturer by 2035. The company plans to invest between $10.5 billion and $11.5 billion in battery cell manufacturing and EV development in 2024. In 2023, GM launched several new electric models, contributing to the overall EV sales growth. The company reported an increase in EV sales, with expectations that EV margins will improve in 2024.

Category	2024 Investment (in billion USD)	2023 EV Sales (in units)	2024 EV Sales Target (in units)
Battery Manufacturing	$10.5 - $11.5	200,000	400,000
Total EV Models	N/A	5	10

Advanced safety and technology features in vehicles

GM prioritizes safety and technology, integrating advanced safety features across its vehicle lineup. The company has invested significantly in research and development, reporting R&D expenditures of approximately $7.5 billion in the last nine months. Key safety technologies include collision avoidance systems, lane-keeping assistance, and adaptive cruise control, which enhance the overall driving experience and customer satisfaction.

Safety Feature	Implementation Rate (2024)	Customer Satisfaction Rating (1-10)
Automatic Emergency Braking	85%	9.0
Lane Keep Assist	75%	8.5
Adaptive Cruise Control	70%	8.7

General Motors Company (GM) - Business Model: Customer Relationships

Direct sales through dealerships

General Motors (GM) maintains a robust network of dealerships across North America and internationally. In the nine months ended September 30, 2024, GM's total net sales and revenue reached $139.74 billion, with automotive sales contributing $128.01 billion. The company sold approximately 1.9 million vehicles in the U.S. during this period, holding a market share of 16.2%. This reflects a slight decrease of 0.2 percentage points compared to the previous year.

Metric	Value (2024)
Total Net Sales and Revenue	$139.74 billion
Automotive Sales Revenue	$128.01 billion
Vehicle Sales in U.S.	1.9 million units
Market Share in U.S.	16.2%

Loyalty programs and financing options via GM Financial

GM Financial plays a significant role in enhancing customer relationships by providing financing solutions. As of September 30, 2024, GM Financial's receivables totaled $90.38 billion, with retail finance receivables at $74.38 billion. The company emphasizes customer loyalty through various financing options, including competitive lease and purchase programs. In the nine months ending September 30, 2024, GM Financial generated revenues of $11.76 billion, reflecting a 12.2% increase compared to the same period in 2023.

Metric	Value (2024)
GM Financial Total Receivables	$90.38 billion
Retail Finance Receivables	$74.38 billion
GM Financial Revenue	$11.76 billion
Revenue Increase (YoY)	12.2%

Customer service and support through various channels

GM provides extensive customer service support through multiple channels, including online platforms, phone support, and in-person assistance at dealerships. The company reported a total automotive and other selling, general and administrative expense of $7.29 billion in the nine months ended September 30, 2024. This investment in customer service is key to retaining customers and enhancing satisfaction. Additionally, GM reported contract liabilities related to customer rewards programs amounting to $6.1 billion.

Metric	Value (2024)
Customer Service Expenses	$7.29 billion
Contract Liabilities (Customer Rewards)	$6.1 billion

General Motors Company (GM) - Business Model: Channels

Online sales and vehicle configurators

General Motors (GM) has enhanced its online sales capabilities, allowing customers to configure and purchase vehicles directly through its website. In 2024, GM reported an increase in online vehicle sales, accounting for approximately 15% of total vehicle sales, driven by user-friendly interfaces and robust vehicle configurators. The configurator allows customers to customize features, colors, and packages, providing an engaging shopping experience.

Physical dealerships worldwide

GM operates a vast network of physical dealerships globally. As of September 2024, GM had approximately 4,200 dealerships across the United States. The company reported that these dealerships contributed to about 85% of total vehicle sales. In the nine months ended September 30, 2024, GM sold 1.9 million vehicles in the U.S., equating to a market share of 16.2%. The dealerships play a critical role in delivering a personalized customer experience and facilitating test drives and vehicle deliveries.

Mobile apps for vehicle management and service scheduling

GM has developed mobile applications that enhance customer engagement and vehicle management. The GM mobile app allows users to schedule services, manage vehicle settings, and access diagnostics remotely. In 2024, the app saw over 2 million downloads and is pivotal in improving customer satisfaction by providing seamless service scheduling and real-time updates on vehicle status.

Channel Type	Key Metrics	Contribution to Sales
Online Sales	15% of total vehicle sales	Estimated sales of $7.5 billion
Physical Dealerships	4,200 dealerships	85% of total vehicle sales, $39.5 billion
Mobile Apps	2 million downloads	Facilitates service scheduling, enhancing customer retention

General Motors Company (GM) - Business Model: Customer Segments

Individual consumers looking for personal vehicles

General Motors (GM) targets individual consumers through a diverse portfolio of vehicles, including sedans, SUVs, and trucks. In the nine months ended September 30, 2024, GM's total vehicle sales in the U.S. reached 1.9 million units, maintaining a market share of 16.2%. The company's offerings in the personal vehicle segment are designed to cater to various consumer preferences, ranging from fuel-efficient cars to high-performance trucks.

Businesses needing fleet vehicles

GM also serves businesses requiring fleet vehicles, offering commercial solutions tailored to logistics, transportation, and service industries. The company reported that its GM Financial division, which supports fleet vehicle financing, generated $11.7 billion in revenue for the nine months ended September 30, 2024. This division's penetration of retail sales in the U.S. was 39% during the same period.

Tech-savvy consumers interested in electric and autonomous vehicles

In response to the growing demand for electric vehicles (EVs) and advanced technologies, GM is focused on attracting tech-savvy consumers. The company aims to launch a variety of electric models, with plans to invest over $35 billion in electric and autonomous vehicle technologies through 2025. As of September 30, 2024, the EV segment is expected to improve EBIT margins, despite recognizing some losses related to inventory adjustments.

Customer Segment	Sales Units (2024)	Market Share (%)	Revenue (Billions)	Investment in EVs (2025)
Individual Consumers	1.9 million	16.2	128.0	N/A
Businesses (Fleet Vehicles)	N/A	N/A	11.7	N/A
Tech-Savvy Consumers (EVs)	N/A	N/A	N/A	35.0

General Motors Company (GM) - Business Model: Cost Structure

Manufacturing and production costs

General Motors Company (GM) reported total automotive and other cost of sales of $39.007 billion for the three months ended September 30, 2024, compared to $35.842 billion for the same period in 2023. This represents an increase of 8.8%.

For the nine months ended September 30, 2024, the total automotive and other cost of sales was $111.618 billion, up from $104.721 billion in 2023, reflecting a 6.6% increase.

Cost Category	3 Months Ended September 30, 2024 (in billions)	3 Months Ended September 30, 2023 (in billions)	Change (%)
GM North America (GMNA)	$35.541	$31.045	(14.5)
GM International (GMI)	$3.173	$3.966	20.0
Corporate	$0.055	$0.130	57.7
Cruise	$0.240	$0.706	66.0
Total Cost of Sales	$39.007	$35.842	(8.8)

Research and development expenses

In the nine months ended September 30, 2024, GM's research and development expenses were approximately $8.2 billion, an increase from $7.5 billion in the same period in 2023. This increase is primarily attributed to advancements in electric vehicle (EV) technologies and autonomous vehicle development.

Marketing and advertising expenditures

For the three months ended September 30, 2024, GM reported automotive and other selling, general and administrative expenses of $2.745 billion, compared to $2.344 billion for the same period in 2023, marking a 17.1% increase. In the nine months ended September 30, 2024, these expenses totaled $7.292 billion, slightly down from $7.449 billion in the previous year.

Marketing and advertising costs specifically accounted for a significant portion of these expenditures, with an estimated allocation of $0.5 billion for the third quarter of 2024, up from $0.4 billion in the third quarter of 2023.

General Motors Company (GM) - Business Model: Revenue Streams

Vehicle sales and leasing income

In the nine months ended September 30, 2024, General Motors reported total vehicle, parts, and accessories sales of $123.3 billion, with vehicle sales contributing significantly to this figure. The automotive net sales and revenue for the same period amounted to $128.0 billion.

For the three months ended September 30, 2024, the total net sales and revenue from automotive operations were $44.7 billion, which represented a 10.4% increase compared to $40.5 billion in the same quarter of the previous year.

Category	Q3 2024 (in billions)	Q3 2023 (in billions)	Change (%)
Vehicle, parts, and accessories	39.8	34.9	14.0%
Used vehicles	0.4	0.3	9.0%
Leased vehicle income	1.8	1.8	0.0%

Financing income from GM Financial

GM Financial generated total revenue of $4.0 billion in the three months ended September 30, 2024, up from $3.6 billion in the same quarter of 2023, reflecting a 10.7% increase. For the nine months ended September 30, 2024, GM Financial's total revenue reached $11.8 billion, compared to $10.5 billion for the same period in the prior year, an increase of 12.2%.

The increase in revenue was primarily driven by finance charge income, which rose by $1.1 billion due to higher average interest rates on new loans and growth in the portfolio size.

Category	Q3 2024 (in billions)	Q3 2023 (in billions)	Change (%)
Finance charge income	2.0	1.6	25.0%
Provision for loan losses	0.3	0.2	26.8%

Aftermarket services and parts sales

GM also generates revenue through aftermarket services and parts sales, which amounted to approximately $3.8 billion in the nine months ended September 30, 2024. This is a slight increase from $3.7 billion in the same period of 2023, reflecting steady demand for parts and services in the automotive sector.

For the three months ended September 30, 2024, aftermarket services and parts sales generated about $1.3 billion, consistent with the previous year's results.

Category	Q3 2024 (in billions)	Q3 2023 (in billions)	Change (%)
Aftermarket services and parts	1.3	1.4	-7.1%

Article updated on 8 Nov 2024

Resources:

1. General Motors Company (GM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of General Motors Company (GM)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View General Motors Company (GM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.