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MAISA 2008 Summer Conference

Global Competitive Assessment

Bob Purcell, GM Powertrain Vice President

Global Planning, Sales & Strategic Alliances

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Personal Education Background

• Philosophy – Learn to think and express logically

• Fine Arts – Learn to think and express creatively

• Business – Applied learning for chosen career

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GM Global Powertrain

84 facilities

17 countries

48,700 people

37,000 engines/day

33,000 transmissions/day

24 Engineering Centers

28 Engine Plants

17 Casting & Component Plants

17 Transmission Plants

Engineering Centers

Engine PlantsCasting & Component PlantsTransmission Plants

Who We Are Today

Advanced Propulsion Technology StrategyAdvanced Propulsion Technology Strategy

ImprovedVehicle Fuel Economy &Emissions

ImprovedVehicle Fuel Economy &Emissions

DisplacePetroleumDisplace

Petroleum

EnergyDiversityEnergyDiversity

Hybrid ElectricVehicles (including

Plug-In HEV)IC Engine andTransmissionImprovements

Hydrogen Fuel Cell

Petroleum (Conventional & Alternative Sources)

Bio Fuels (Ethanol E85, Bio-diesel)

Hydrogen

Electricity (Conventional & Alternative Sources)

Battery ElectricVehicles (E-Flex)

TimeTime

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6-Speed Transmission6-Speed Transmission

3.6L Dual Overhead Cam V6: Cadillac CTS

3.6L Dual Overhead Cam V6: Cadillac CTS

Traditional Powertrain Components:- Engine, Transmission, Transfer case

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Hybrid Powertrain Components – Electric Power Delivery

Inverter TPIM – Traction Power

Inverter Module

12 Volt DCDC ConverterAPM – Accessory Power Module

Electric Machines (Motors)

Power Electronics

300V, 1.8 kW-hr NiMH Battery

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Extended Range Electric Vehicle (EREV)

120 volt Electric Motor

4 Cylinder Engine /

Generator

Lithium-ion Battery Pack: - Stores electricity from the grid

Charge ports – recharges battery from household outlet

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Fuel Cell Vehicle Components

Fuel Cell Stack - replaces gas engine

Fuel Cell Stack - replaces gas engine

H2 StorageH2 Storage

BatteryBattery

- Power Electronics- Traction Motor- Power Electronics- Traction Motor

• Enlightenment: Help make students aware of science, math and technology issues

• Knowledge: Reinforce this awareness with solid concepts and real-world applications

• Attitudes: Help students personalize their relationship with the global environment

• Action: Help students learn how to make a difference

GM’s Four Principles in Education

GM K-12 Education Criteria

• Enhance science, math, and technology curricula,

• Excite students about science, math and technology,

• Develop effective science, math, and technology teachers (teacher’s professional abilities),

• Apply technology to improve classroom learning (infrastructure), and

• Impact GM communities where employees live and work.

GM K-12 Education: Partnerships

*Fall 2007 data*Fall 2007 data

“38,530 studentsguided by GM mentors

since 1997!”

FIRST alumni are …

• 88% college bound

• 66% more likely than avg. to attend college

• 4 times as likely to pursue a career in engineering

FIRST alumni are …

• 88% college bound

• 66% more likely than avg. to attend college

• 4 times as likely to pursue a career in engineering

FIRST ImpactFIRST Impact

GM participation(teams/students) 1997 2008 Robotics 2/60 64/1,920Lego 0/0 480/4,800*Total GM 2/60 544/6,720teams/students

FIRST RoboticsFIRST Robotics2008 GM Team Accomplishments

• 7 Regional Wins

• 8 Regional Finalists

• 5 Regional Chairman’s Award Winners

• 46 Other FIRST Award Winners

2008 Championship Event Accomplishments

• Overall Event Champion

• Championship Runner-up

• 2 Divisional winners

• Championship Highest Rookie Seed

2008 GM Team Accomplishments

• 7 Regional Wins

• 8 Regional Finalists

• 5 Regional Chairman’s Award Winners

• 46 Other FIRST Award Winners

2008 Championship Event Accomplishments

• Overall Event Champion

• Championship Runner-up

• 2 Divisional winners

• Championship Highest Rookie Seed

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The Art of Strategic Thinking – Kenichi Ohmae

Analysis – Mechanical Systems Thinking

SolutionProcess of Thought

Problem Prototype

Rearrangement of Elements

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The Art of Strategic Thinking – Kenichi Ohmae

Analysis – Mechanical Systems Thinking

Intuition

SolutionProcess of Thought

Problem Prototype

Local optimization, or seeing the tree not the forest

Rearrangement of Elements

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The Art of Strategic Thinking – Kenichi Ohmae

Analysis – Mechanical Systems Thinking

Synthesis - Strategic Thinking

Intuition

SolutionProcess of Thought

Problem Prototype

Local optimization, or seeing the tree not the forest

Transformation or changed configuration

Rearrangement of Elements

Analysis of essence

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Leadership Triangle

Tactics: Single Mission

Captain / LieutenantDeployment

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Leadership Triangle

Tactics: Single Mission

Captain / Lieutenant

Operations: Multiple Missions

Colonel / MajorSystems Thinking

Deployment

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Leadership Triangle

Strategy: Vision and Objectives

General / Admiral

Tactics: Single Mission

Captain / Lieutenant

Operations: Multiple Missions

Colonel / Major

StrategicThinking

Systems Thinking

Deployment

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What does it take to become an Industry Leader?

• Clearly Defined Vision and Expectations

• Fundamental Strategies

• Capability and Will to Implement

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What is an Industry Leader?

LEADER... something or someone that shows the way

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What is an Industry Leader?

LEADER... something or someone that shows the way

• Intellectual Leader – Superior Understanding of:– Customers, Markets and Products

– Vision for the Industry and your company

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What is an Industry Leader?

LEADER... something or someone that shows the way

• Intellectual Leader – Superior Understanding of:– Customers, Markets and Products

– Vision for the Industry and your company

• Capability Leader – Superior Ability to:– Develop and Maintain Your Core Competencies

– Define Basis of Competition for the Industry

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What is an Industry Leader?

LEADER... something or someone that shows the way

• Intellectual Leader – Superior Understanding of:– Customers, Markets and Products

– Vision for the Industry and your company

• Capability Leader – Superior Ability to:– Develop and Maintain Your Core Competencies

– Define Basis of Competition for the Industry

• Results Leader – Superior Sustained Performance in:– Market Share

– Profitability / Cash Flow

– Return to Shareholders

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VISIONVISION

GM’s vision is to be the world leader in

transportation products and related services.

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World’s BestPowertrainsWorld’s BestPowertrains

GM Powertrain’s GM Powertrain’s MISSIONMISSION

GM Powertrain

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GM Powertrain Business Management ProcessGM Powertrain Business Management Process

LEARNINGS

Plan Sufficiency Review

Plan ExecutionDECISIONS

Plan Development

Strategy Development

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GM Powertrain Business Management ProcessGM Powertrain Business Management Process

“In the long run the only sustainable source of competitive advantage is your organization’s ability to learn faster than it’s competition”

The Fifth Discipline Fieldbook - Peter Senge 1994

LEARNINGS

Plan Sufficiency Review

Plan ExecutionDECISIONS

Plan Development

Strategy Development

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• Assess sufficiency of performance vs. the competition through:– Identifying key metrics … what is most important to the customer

– Competitive intelligence … benchmarking industry leaders

– Market research and industry trends

• Identify gaps vs. Best in Class– Today and 5 years out

– Prioritize on customer importance

• Agree on potential solutions– Changes to plan

– Changes to programs

Plan Sufficiency Review

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Product Region:

Global Review date: =>2007 competition / / / 2012 competition / / /

GM vehicle & powertrain information GM vehicle & powertrain informationCompetitor 1 vehicle and powertrain information Future competitor 1 vehicle and powertrain informationCompetitor 2 vehicle and powertrain information Future competitor 2 vehicle and powertrain informationCompetitor 3 vehicle and powertrain information Future competitor 3 vehicle and powertrain information

Competitor 4 vehicle and powertrain information Future competitor 4 vehicle and powertrain informationCust. Need [1=high to 5=low]

GM

Comp 1

/ / // / / Comp 2/ /

/ Comp 3

/ / Comp 4/ /

/ / GMComp 1Comp 2Comp 3Comp 4

/ / / /

Lowest ratio na na na

Best future comp off-roadOff Road Capability Best curr comp off-road

Pounds / Kg.Lbs. Kg. Best future comp towTow Capacity Lbs. Kg. Best curr comp tow

Content & score na na naBest future comp imageTech. Image Best curr comp image

ComplaintsSmooth Ride Shift Feel Best curr comp ride Shift Feel Best future comp ride

Content & score na na na

On Road Traction Best curr comp tract Best future comp tract

GM vs. adj compPlant utilization GM (over)/under competitor GM (over)/under competitor

Product cost Engine Trans Best curr comp cost Engine Trans Best future comp Cost

EPA City / Hwy

Powertrain wgt.Eng / Trans

U.Comb / L-00KmFuel Economy Best curr comp FE Best future comp FE

Launch / Hwy PassLb/HP & top speed

Ft.Lbs / Nm

Curb Wgt.Curr./Fut. Lb.

HP / kW

In Veh:

Performance Std. Metric Best curr comp Perf Std. Metric Best future comp perf

WOT dBA In Veh: In Veh: In Veh:

In Veh:Idle dBA In Veh: In Veh:

ComplaintsEng Trans Best future comp NVH

In Veh:

NVH Eng Trans Best curr comp NVH

Durability [1 to 5]Reliability [1 to 5]

Trans Best future comp QRDInitial quality

Eng Trans Best curr comp QRD Eng

Future Best Competitorfor attribute set

Notes & Weights

Vehi

cle

1

Vehi

cle

2

Vehi

cle

3

QRD

PowertrainAttributes

Current GM VehicleScore & Position

Current Best Competitorfor attribute set

Future GM VehicleScores & Position

MTs HP Ft.Lb.HP Ft.Lb. Engine ATs

World's Best Powertrain Competitive SnapshotGM Vehicle, powertrain today GM Vehicle, powertrain +5 years

Vehicle Segment PT type

Engine ATs MTsBlue =>Trans. DataS

tan

dard

Cate

gori

es

Op

tion

al

Cate

gori

es

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1

2

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5Company 1

Company 2

Company 3

Spider Chart FormatSpider Chart Format

Benchmark

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Success is driven by . . .

- a Plan to WinPlan to Win

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Success is driven by . . .

- a Plan to WinPlan to Win . . . . . . and

- the Will to WinWill to Win