GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United...

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GM STRATEGY TEARDOWN July’18

Transcript of GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United...

Page 1: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

GM STRATEGY TEARDOWNJuly’18

Page 2: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

2Source : DRAUP

Executive Summary (Slide 1 of 2)

- Key Business Priorities: In the past 3 years GM redefined it’s business strategy across 3 major initiatives- Exit from non-profitable markets- Cash infusion into emerging technologies- Organisational restructuring that enables swift growth and innovation

- Exit from Non-profitable markets: Exiting from non-profitable markets notably from Europe and India has helped the company to regain profitability. Majority of their business activities are consolidated towards North America and China. US and Canada are the key regions that holds most of the GM Engineering Talents working on emerging technologies like Electric vehicles, Autonomous cars and New mobility business models. GM placed a major bet in partnership with the Chinese Giant SAIC on building hybrid and Electric vehicle portfolio in Cadillac and Buick brands.

- Technology Focus: GM’s strategic roadmap is framed around 3 technology areas that will help the company emerge as a mobility leader:- Mass market electric vehicles with Chevy bolt as a foundation platform- Autonomous vehicles deployment using ride-hailing and ride-sharing around Tier-I cities in US- Transportation as a Service with an aggressive business model expansion in Maven platform.

- Organisational restructuring: Mary Barra redefined GM’s traditional business culture by hiring and positing visionary leaders that showed high focus on on ecosystem development, financial sustainability and new age product development. Leaders like Dan Ammann have played a key role in elevating GM’s position in the industry by acquiring new age engineering capabilities through planned investments, acquisitions and partnerships.

Page 3: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

3Source : DRAUP

Executive Summary (Slide 2 of 2)

- Key decision makers & buying centers: Detroit is the central hub for key decision making to facilitate key strategic partnerships across globe. Apart from the headquarters, Bay Area, Canada and China have rapidly emerged as new decision making hubs. Bay Area is majorly focused towards the development of autonomous cars and electrification. Kitchener and Ontario centers in Canada explore new partnering opportunities to incubate new ideas for urban, multi-modal transportation systems that combine public transit, ride-sharing.

- EV partner zones: GM leverages partnership with LG to acquire and scale EV tech capabilities. Design and development of Battery cell, power distribution module and creating a charging infrastructure network are high intensity partnership areas for GM.

- AV partner zones: System Integration, feature development and sensor fusion are key AV tech stack focus areas that witnesses partnership and outsourcing activities. Software integration and testing, simulation platform testing and validation, Cybersecurity are key opportunity areas for service providers.

- New mobility business models: GM’s Maven Gig is an ideal example that portrays the company’s mobility activities towards unexplored use-cases. Company is planning to build new-age collaborations with multiple transportation players that will help them create innovative business models around the mobility ecosystem.

- Data Monetization: The company’s initiatives to rollout EV and AV through TaaS business platforms will create a huge IoT network that acts a strong data source. The network creates a great monetization opportunity for the company through cross-industry vertical partnerships.

Page 4: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

AGENDA

Ø GM’s Financial and strategic outlook

q Key strategic initiatives

q Leadership priorities

q Emerging technology focus areas

Strategy Teardown

GM Strategic Overview

Technology Focus Areas

01

02

Electric Vehicles (EV)2.1

Autonomous Vehicles (AV)2.1

Mobility2.1

Page 5: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

5Source : DRAUP

Company Overview – Around 85% of revenue is contributed by GM’s North American operations and joint venture with Chinese manufacturers

Revenue vs R&D spend (2015-17)

$135.73 B$149.18 B $145.58 B

$6.00 B $6.60 B $7.30 B

2015 2016 2017

Revenue in billion R&D spend in billion

76.60%

15.06%

8.34%

Revenue share by segment (2017)

General Motors (GM) engages in the manufacture and sale of cars and trucks in the United States, China, Brazil, Germany, the United Kingdom, Canada, and Italy. General Motors acts in most countries outside the USA via wholly owned subsidiaries, but operates in China through 10 joint ventures. GM's OnStar subsidiary provides vehicle safety, security, and information services.

GM BrandsAbout GM

Headquarter:Greater Detroit Area, United States

Revenue (2017):$145.58 billion

R&D Spend (2017):$7.30 billion

Revenue CAGR (2015 -2017):10.30%

GM Financial

GM International

GM North America

Note – DRAUP data curated from GM’s financial reports published annually and updated in July, 2018

Page 6: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

6Source : DRAUP

Challenges & Initiatives – GM leadership has envisioned a roadmap focused on key initiatives such as market consolidation, technology leadership and organizational restructuring

BankruptcyAfter years of losses, the troubled automaker is forced into bankruptcy. GM is set to close a dozen facilities and cut more than 20,000 jobs.

Losing Global DominanceGM had lost its global dominance and was losing market share in regions outside US like Europe, India and Australia.

Lagging in Emerging technologiesAutomotive ecosystem was being penetrated by cross-vertical technology giants that were advancing in terms of technology and reshaping the transportation industry

Visionary LeadershipStreamline leadership team and place best executives in positions where they can use their diverse perspectives and extensive global experience

Exit Non-performing MarketsGM sold its stakes in loss making businesses to generate fresh capital for its core businesses.

Invest In New Technology AreasGM leaders plot a long-term strategic plan to penetrate and develop new auto capabilities to revive the industry dominance

Sustainable Roadmap PlanningLeaders have witnessed the potential in every area of auto business and understood the potential of GM to become a leader that will ensure sustainable business for GM

Operational RestructuringExiting Non-performing markets like India and Europe ensured profitability

Position as a Mobility LeaderInfuse capital from non-performing markets into electrification, autonomy and mobility that will lay foundation for GM to begin their journey as a mobility player.

Challenges Initiatives Solutions

1

2

3

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

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7Source : DRAUP

Visionary Leadership (1/2): Strategic initiatives of top leaders in the past 3 years indicates high focus on ecosystem development, financial sustainability and new age product development.

1 2 3Mary Barra

Chairman and Chief Executive Officer

Mary Barra is 33 year veteran of GM and has held rolesin engineering and assembly. Barra is firmly ensconcedin her leadership role, having assembled perhaps thebest management team GM has ever had

Market Consolidation:Ø Shut down money-losing operations Russia,

Australia, India, South Africa and Europe

Technology initiativesØ Ride-hailingØ Self-driving VehiclesØ Mass market Electric vehiclesØ Connectivity

Operations optimisationØ Restructure LeadershipØ Redefine GM’s traditional strategy

Dan Ammann

President, General Motors.Autonomous and MobilityLeader

Dan Ammann was hired by GM to lead its globalbusiness restructuring and infuse capital into thebusiness. He is known for his shrewd corporateinvestment strategies.

Business Restructuring:Ø Helped General Motors through bankruptcy by

advising during its 2009 restructuring

Partnership and AcquisitionsØ Successfully lead the acquisition of Cruise

Automation and StrobeØ Acquisition of SidecarØ Partnership with SoftBank for Autonomous vehicles

Financial StabilityØ Decision-making on key investmentsØ Captive finance business, GM Financial

Mark Reuss

Executive Vice President, Global Product Development, Purchasing and Supply Chain

Mark Reuss was hired to head GM’s global engineering& operations and develop a globally competitiveportfolio of electric vehicles.

EV Roadmap:Ø Developed global electrification plan and launch

strategy of 20 EVs by 2023

Product Development:Ø Led product development for mass production of

autonomous vehiclesØ Led the launch of Chevy Bolt EV and it’s modular

platform strategy

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018:

Page 8: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

8Source : DRAUP

Mary BarraChairman and Chief Executive Officer

Dan AmmannPresident

Alan BateyExecutive VP, GM North America

Daniel E. BerceSenior Vice-President,

GM Financial

Kimberly J. BryczSenior Vice-President,

Global HR

Stephen K. Carlisle Senior Vice-President,

Cadillac

Chuck StevensExecutive VP

Tony CervoneSenior Vice-President,

Global Communications

Barry EngleExecutive VP, GM International

Mark ReussExecutive VP, Product

development

Randall D. MottSenior Vice-President,

CIO

Dhivya SuryadevaraExecutive VP & CFO

Alicia Boler DavisExecutive VP, GM Manufacturing

Craig GliddenExecutive VP & General Counsel

Rick WestenbergVice President, Treasurer

Thomas S. TimkoVP & Chief Accounting

Officer

Matt TsienPresident, GM China

1 2 3

Visionary Leadership (2/2): New Organizational Structure and Key Stakeholders

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018:

Page 9: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

9Source : DRAUP

Exit non-performing markets (1/3): GM’s exit from non-profitable markets facilitated capital infusion into new-age focus areas such as electrification, autonomy and mobility

General Motors market exit across the world

San Francisco, USA

Los Angeles, USA

Detroit, USA

Kitchener, Canada

Toronto, Canada

Sao Paolo, Brazil

Israel

Australia

Shanghai, China

Incheon, South Korea

South Africa

India

Europe

Talegaon plant will be used

to manufacture products for

export. the company's

technical center is in

Bangalore.

GM can possibly exit

Mexico due to strong

export regulations by

Trump administration

GM has sold its Opel and Vauxhall vehicle

brand to PSA group in

Europe for $2.3 billion

New locations

Active locations

Shutdown locations

GM sold its

Struandale plant to

Isuzu for $600M

GM saved ~

$600M on closing

Holden operations

Toluca, Mexico

• GM sold its Opel and Vauxhall vehicle brand, which it had controlled for 90 years, to PSA group in Europe for $2.3 billion. GM has been losing money in Europe every year since 1999.

• GM pulled out of India as it struggled to gain market share in its 20 years of operations coupled with frequent changes in top management and inconsistent product strategy.

• The decision to stop Holden production in Australia was taken because of rising cost of manufacturing, sourcing of auto parts and absence of government subsidies.

• GM views South Africa as a less profitable market with little return on investments compared to other global markets.

1 2 3

Note: Global Footprint Data curated by DRAUP and updated in July, 2018

Page 10: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

10Source : DRAUP

1 2 3

Exit non-performing markets (2/3): Detroit, Bay Area, Canada and China have rapidly emerged as new decision making hubs

Greater Detroit Area, HQ, USA

Focus: Autonomous vehiclesPowertrain

Change: +2600 FTE

San Francisco Bay Area, USA

Focus: Cruise, Autonomous vehicles, InfotainmentChange: +1100 FTE,

Toronto, Canada

Focus: Connected cars,Infotainment, Green technology

Greater Los Angeles Area, USA

Focus: Advanced designstudio

Kitchener, Canada

Focus: Ridesharing, Multi-modal transportationChange: New Centre

Shanghai, China

Focus: Electric Vehicle, Powertrain, Telematics

Change: Proposed Hub

Bangalore, India

Focus: Automotiveelectronics & control,Light weight materials

Herzliya, Israel

Focus: AI, Cybersecurity, Smart mobility

Turin, Italy

Focus: Propulsion system, Hybrids

Frankfurt Am Main Area, Germany

Focus: Vehicle engineering, propulsion & connectivity

Toluca, Mexico

Focus: Interior components,Thermal systems

Change: Satellite to Outpost

X

Melbourne, Australia

Focus: Powertrain, Holden R&D

XFocus: Vehicle design,

Battery electric vehicleChange: Proposed Satellite

South Korea

Focus: Innovation and testing

Mannheim Area,Germany

Focus: Cold weathervehicle development

Change : Proposed Satellite

Ontario, Canada

Sau Paolo, Brazil

Focus: Design and testing

Outposts

Satellites

Hubs

X

Shut down predicted

Shut down (During last 2 years)

New Center/ Centre Maturity

Note: Global Footprint data curated by DRAUP and updated in July, 2018

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11Source : DRAUP

1 2 3

Exit non-performing markets (3/3): High focus on emerging tech areas across key decision making hubs

Key decision making hubs for GM

Detroit, USA

R&D Workforce: 21,600

# of R&D Centers: 4

R&D Location Class: Headquarter

Center Cost: $4.9 Billion

California, USA

R&D Workforce: 170

# of R&D Centers: 1

R&D Location Class: Hub

Center Cost: ~$ 2.0 billion

Canada

R&D Workforce: 300

# of R&D Centers: 4

R&D Location Class: Hub

Center Cost: $72 Million

Shanghai,China

R&D Workforce: 300

# of R&D Centers: 2

R&D Location Class: Hub

Center Cost: $39 Million

Centres: • Cold Weather Development Centre,

Kapuskasing: Cold Weather Vehicle Development tests, Cold Weather Exposure test

• Canadian Technical Centre –Markham: Software development for autonomous vehicle, infotainment & connected vehicle technology, advanced mobility innovation and advanced automotive technologies in chassis electronics

• 2908 at Communitech – Kitchner: Advanced smartphone applications, ride-sharing services, multi-modal transportation systems

• Canadian Regional Engineering Center – Oshawa: automotive Infotainment, control & diagnostics development

Centres:• North Hollywood Advanced

Design Center, North Hollywood: Creation of clay surface and refinement of advanced concept programs, development and support of exterior and interior of vehicle, UI/UX design & innovation, embedded controls software for engine fuel and emissions etc.

• GM Advanced Technology Lab:Vehicle infotainment software products, vehicle systems simulation, HTML5 platform for its Cadillac etc.

• Cruise Automation: Development of technology related to autonomous vehicles – Cruise Automation

Centres: • Global Battery Systems test lab –

Warren: Charger development, testing, cord set testing, competitive benchmarking, prototype battery packs.

• GM Global Technical Centre –Warren: Car sharing, ride sharing, autonomous vehicles and electric vehicles, simulation platform for future mobility analysis etc.

• Manufacturing Systems Research Lab – Warren: Decision making, alliances, social networks, market research and statistical modeling

• Pontiac Engineering Center/ Powertrain Engineering - Active Fuel Management System, Ignition Coils, Fuel Injectors, fuel cell-polymer electrolyte fuel cell system etc.

Centres: • GM China Advanced Design center

– Shanghai: Automotive design, customer mobility behaviour

• GM China Advanced Technical Center – Shanghai: integration of in-vehicle connectivity systems, radar, cameras and ultrasonic sensors in Cadillac models, powertrain design, electrical and fuel cell design, chassis, HVAC, body, exterior and interior development and telematics.

• Pan Asia Technical Automotive Center –Shanghai: Climate wind tunnel test, fleet evaluation tests, performance tests, durability tests, weather exposure tests, high altitude tests

Note: Global Footprint data curated by DRAUP and updated in July, 2018

Page 12: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

Source : DRAUP

12

12

2020

2780 2700

3920

6330

3040

5140

1180

16402090

34503720

3960

6390

3120

5440

1360

2250

0

1000

2000

3000

4000

5000

6000

7000

GM Talent Analysis: GM’s recent hiring activities and future hiring announcement indicates that Data Science, App development and System Engineering roles will witness a high growth rate

UI/UXData

Science & Analytics

App Development

BodyEngineering

Chassis Powertrain Electronics/ Infotainment

Powertrain Systems Engineering

Software Mechanical Embedded

AI/Data analytics and System Engineering roles are expected

to be placed towards the development of autonomous and electrification technology

development

Software Development & maintenance engineers are

expected to be the most sought talents that will help

GM mainly towards new mobility business models

1.40%

11.25%17.35%

0.51%

0.44%

1.33%

2.87%

7.25%

17.10%

Key Assumptions- Analysis of around 300 engineering job roles to arrive at annual growth rates- It is assumed that 70% of the job openings get fulfilled annually- Attrition rate of 5% has been considered based on GM’s past 3 years historic data

2018 2020

XX %YoY Growth rate

Tale

nt H

eadc

ount

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Warren, Bay Area & Canada are Key hotspots for R&D expansion

Page 13: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

13Source : DRAUP

1 2 3

AUTO MANUFACTURING

CONNECTIVITY

ELECTRIFICATION

Engine Development

Body in White

New

Foc

us A

reas

GM

Cor

e Ex

pert

ise

V2V V2I V2X

Vehicle Chassis Building

Transmission Engineering

Invest On New Focus Areas: Disrupting mobility business models and defining TaaS as a platform for electrification and autonomy will help GM achieve dominance as a full stack mobility player

VEHICLE AUTONOMY

BEV HEV/PHEV Fuel Cell Level 2Semi Autonomous

Level 3Auto-Pilot

Level 4/5Fully Autonomous

Ride-hailing & sharing

P2P Car-Sharing

Car Rental

Car as a Subscription

TRANSPORTATION AS A SERVICE (TAAS)

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 14: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

AGENDA

Ø Details on GM’s technology focus areas

q Strategic Priorities

q Competitive landscape

q Technology stack and current vendor ecosystem

q Key decision making and buying hubs

Strategy Teardown

GM Strategic Overview

Technology Focus Areas

01

02

Electric Vehicles (EV)2.1

Autonomous Vehicles (AV)2.2

Mobility2.3

Page 15: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

15Source : DRAUP

EV Positioning Strategy: GM’s current EV focus is on mass market segment

Market share

EV R

eadi

ness

1

1 : Readiness considering factors - % R&D Talent, Leadership Commitment, Time to Market, % patent filing and partnerships

Mass market EVs Premium EVs

GM

Tesla

Volkswagen

BMW

Renault-Nissan

Ford

BYD

Tesla

BMW

BYD

Ford

Major brands have started to focusing

on the mass market EV segment

~5%Global EV market share

~70% EV sales from USA

~25% EV sales from China

~25 %Of electric vehicles sold in

US by GM in 2017

~ 29KChevrolet Bolts sold in 2017

Chevy Volt and Bolt have made GM a

popular brand in the mass market segment

Tesla and BMW have concentrated

on premium vehicles since the beginning

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 16: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

16Source : DRAUP

Present status : 2015-2017 Future initiatives: 2019-2025

Vision & Roadmap: Setting North America and China as EV targets will help GM showcase immediate dominance in the world’s largest auto markets

• Sold 29,325 Bolts in 2017

• 3 models each in US and China with electrification

• Global model Cadillac CT-6 being manufactured in China

• Developed a new modular BEV platform for future vehicles

• Cost of battery pack: $145 per kilowatt-hour

• Introduce new Chevrolet Bolt model based on modular BEV2 platform

• Launch 18 electric vehicles based on new EV platform from 2019

• Launch 10 more heavily electrified models in China between 2021 and 2023

• Launch new modular BEV2 platform• Reduce cost of battery to $100 per Kwh

by 2021

EV-portfolio

EV Technology

Chevrolet Bolt

EV portfolio

EV Technology

Chevrolet Bolt

• Sold more than 130,000 units of Chevrolet Volt since its release in 2010

Chevrolet Volt

Build Affordable And Accessible EV Platform That Positions GM As

An Electrification Leader

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 17: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

17Source : DRAUP

GM China: GM has chosen the route of joint ventures (JVs) in China to develop Cadillac and Buick brands that can be scaled and monetized globally

GM’s home grown brands

Will launch EVs under a new Chinese brand

eGT New Energy Automotive Co

Mini Electric (yet to launch)

Tesla plans to launch a fully-owned subsidiary in China by 2020

SOL

A new Chinese brand

A Chinese brand for luxury EVs

A new Chinese brand

A Chinese brand for luxury EVs

A Chinese brand for mass market EVs

Manufacturing home grown global brands in China via JVs

has allowed GM to sell them at affordable price in a hugely

popular EV market

JV with Chinese OEMs enables GM to scale and expand Cadillac and Buick’s EV

portfolio to other technology ready markets

10 future EVs planned in China through JVs

Note: Analysis is based on the DRAUP’s partnership module, updated in July, 2018

Page 18: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

18Source : DRAUP

Delays in model 3 production

EV Platform Strategy: GM has been early in developing a proven and scalable modular electric vehicle platform that lays a foundation to set a strong EV footprint

2012 2013 2014 2015 2016 2017 2018 2019 2020 2022 2025

Chevy Bolt concept BEV launched

Launched Chevy Bolt based on a modular

platform

Launch 2 crossoversbased on Chevy Bolt

platform

Launch 5 crossovers, 2 minivans & 7 SUVs based on

Chevy Bolt platform

Model S launched with 335 miles range

Model X launched with 380 miles range

Model 3 launched with 350 miles range

Planned Model Y based on Model 3

platform

e-Golf launched with 118 miles range

Development of Modular Electrification Toolkit (MEB)

complete

i3 BEV launched with 130 km range

Mini Electric to be launched based on i3

technologies

Plans to build a modular electric vehicle platform

Launch 12 BEVs based on modular electric platform

2nd generation Nissan Leaf launched

Common scalable EV platform

Launch 12 BEVs based on new electric

platform

Dedicated EV architectures for future vehicles

Launch 16 BEVsFord Focus launched with 76 miles range

Launch Volkswagen I.D. vehicles based on MEB

platform

GM has an early start in terms of developing a modular EV platform

Bolt’s modular architecture has enabled GM to manufacture

Bolt at scale in the same assembly line for gasoline fueled

models without any heavy investments

Gm believes, platform sharing will lower development cost, enable faster R&D and swift

launch of future electric vehicles

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

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19Source : DRAUP

EV Capability Deep-dive: GM partnered with a one-stop EV technology provider to enable faster R&D and swift product launch

Battery pack Drivetrain Motor Drivetrain Infotainmentsystem Charger

Acquisition Investment Partnership Inhouse

EV readiness

High Medium Low

Compact Power, Inc. (CPI)

GM has identified mass market EVs as an untapped segment

and intends to capitalize on the shortcomings of major brands

like Tesla

GM considers Tesla’s Model 3 as its strongest competition

and benchmarks it EV platform against the yet to

be delivered model.

GM’s strategy to partner with other technology partners has enabled it to launch a scalable mass-market EV

earliest in the market

Note: Analysis is based on the DRAUP’s vendor ecosystem module, updated in July, 2018

Page 20: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

20Source : DRAUP

Partnership Opportunities: High partnership opportunities in Battery cell development, power electronics and Charging infrastructure development.

Battery Cell

Battery Pack

Battery Management System

Power Electronics

Transmission & Motor

Infotainment

Charging Infrastructure

Key Activities and partners

• Design & production of alternate battery cells • Development of battery control algorithms

Elec

tric

Veh

icle

tech

nolo

gy s

tack

• Design & production of battery packs • Development of battery heater

• Power consumption optimization

• Statistical modelling & analysis of battery components • Software design and development

• Data logging and testing

• High power distribution module

• Accessory power module

• Embedded design and development

• Embedded testing and maintenance

• Electric circuit performance analysis

• Instrument cluster development

• Motor controller design and production • Drivetrain systems integration

• Design and testing of electric transmission

• Software design development • Infotainment system development

• Construction and design of charging station

• Powerline communication module

• Development of on-board charger

• Development of fast charging network

• Wireless charging infrastructure

Partnership Intensity

• Motor dynamo testing

Low

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 21: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

21Source : DRAUP

LocationWarren, MichiganGreater Detroit Area

EV headcount~ 1700 FTES

R&D Spend~ $45 million

Center LevelHQ & Hub

Key InfluencersPamela Fletcher

Vice President & Exec Chief

Greg HubbardDirector - Battery

Systems Engineering

GM Global Research HQ/ Warren Technical

Centre

Key InfluencersWilliam F. Bertagni

President, Pan Asia Technical Automotive

Center (PATAC) &Vice President, Vehicle Engineering, GM China

Lynn LongoManaging Director,

Shanghai OnStar / GCC Beijing Group

Pan Asia Technical Automotive Center

LocationShanghai

EV Headcount300 - 500

R&D Spend~ $40 Million

Center LevelHub

Key Activities

Key Profiles

• Testing and validation engineer

• Subsystem validation engineer

• Fuel cell systems engineer

• Energy storage system product development

• GM’s Global Battery Systems Lab has been responsible for testing and validating both battery cells and packs for all of GM’s vehicle electrification systems, including the battery systems for the Chevrolet Volt, Cadillac ELR, Chevrolet Spark EV and GM’s eAssist light electrification system.

• Additional capabilities of the lab include:• Development of dedicated equipment for

future vehicle battery system such as charger development and testing, cord set testing and competitive benchmarking.

• Development of prototype battery packs• Act as the hub for validation and testing of all

battery systems designed for use in future GM vehicles

• Validate and test updates to existing battery chemistries and system designs.

Key Profiles

• Vehicle Safety Integration engineer

• Design Release Engineer

• Powertrain Test Engineer

• Electronic Propulsion Hardware Development

Engineer

• System validation Engineer

• Automotive Crash Safety Engineer

Key Activities• Envision Visual Center: Virtual visualization

facility for design reviews, central signal control system

• Vehicle Safety Lab: Vehicle safety, sled safety lab and component/subsystem safety research and development.

• Climate Wind Tunnel: Simulate climatic environment, Simulate road load, test of vehicle HVAC system, thermal systems integration etc.

• Noise , Vibration and Harshness lab: Climate simulation, energy conservation, noise testing etc.

Sandra MonterossoEngineering Group

Manager - Battery Cell and Module Release

EV Buying Centres: Prospective EV partners need to reach out to the leaders in Warren to build a strategic partnership that would expedite their electrification rollout strategy

Note: Global Footprint data curated by DRAUP and updated in July, 2018

Page 22: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

22Source : DRAUP

Key Leaders & Influencers

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

Managers

Director

Greg StrutzEngineering Group Manager -

Hybrid Powertrain

Greg CesielEngineering Group Manager at

General Motors

Jerry BeemerDirector - Transmission & Electrification Hardware

Engineering

John HarafDirector - Electrification Controls

Integration

Jinming LiuManager, Electrification

Powertrain System Integration

Greg HubbardDirector - Battery Systems

Engineering

James RichardsDirector - Global Transmission

and Electrification Development and Validation

Vice President

Rodney MaloneAdvance Propulsion Engineering Group Manager - Electric Motors

and Global Drive Units

Pamela FletcherVice President & Exec Chief

Engineer Autonomous & Electrified Vehicles

Cathy RoseEngineering Group Manager -Global Electrification Controls

Martin FoulkesEngineering Group Manager -

Transmission and Electrification N&V

Steve TarnowskyDirector - Global Transmission & Electrification, Advanced & New

Product Engineering

Praveen KedarDirector - Powertrain Planning -

GM China

Sandra MonterossoEngineering Group Manager -

Battery Cell and Module Release

Vimesh PatelEngineering Group Manager -

Propulsion System Intergration

Mark MientkiewiczGlobal Program Quality Manager

- Electrification

Sohail KhanManager, Powertrain & Electrification - Program Planning/Management,

Top Leader

Mark ReussExecutive Vice President, Global

Product Development, Purchasing and Supply Chain

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Source : DRAUP

23

23

Greg Hubbard – Executive Persona

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

Greg HubbardDirector - Battery Systems Engineering

Experience:• Director, Battery Systems Engineering, GM –

(2018 – present)

• Chief Engineer, Electric and Hybrid Propulsion

Systems, GM (2014 -2018)

• Director, Electrification Controls, GM (2012- 2014)

• Senior Manager, Hybrid & Electric Vehicle

Controls, GM (20117, 2012)

• Engineering Group Manager, Hybrid Control

Algorithms, GM (2003 -2007)

Education• Massachusetts Institute of Technology• Rose-Hulman Institute of Technology

• Greg decides on products and services after having a hands-on experience of the same and hence prefers engaging with subject experts with strong technical knowledge.

• Greg is also very feeling-oriented and would engage in a long term relationship if he gets the feel of the product/service. He is open and transparent about his expectations and expects the same from the other party.

• Greg is likely to engage more if the pitch is precise and substantiated with facts and logic with proper use of technical terms.

• Ensure that you’re honest about your product and do not exaggerate or embellish its virtues a lot.

• Do not make the mistake of oversimplifying features of your product/service while explaining them to Greg

• Ensure to establish trust with Greg and provide a complete and accurate overview of your product/ service.

• While highlighting the best features of your product/ service, explain how purchasing it will provide Greg with an advantage over the rest

• A unique and innovative solution that can disrupt automotive industry will ensure greater likelihood of your product/ service being purchased by Greg.

• If Greg is unaware of all the features of your product/service or doesn't have an in-depth knowledge of its practical applications, then it's a deal breaker.

Persona Communication Tip Decision Urgency Deal BreakerMeeting Guide

Technology LeaderAbility to look at ways of revolutionizing products or industries through technology disruption

ReliantLikelihood of being loyal to a product or service in the long run

PioneerConstant endeavour to try out new things and find ways to do something better

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Source : DRAUP

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24

Sandra Monterosso – Executive Persona

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

Sandra MonterossoEngineering Group Manager -Battery Cell and Module Release

Experience• Engineering Group Manager -

Battery Cell and Module Release,

GM (2017 – present)

• Engineering Process Strategy

Leader, GM (2016 - 2017)

• Battery Project Lead, GM (2015 –

2016)

• Program Manager, GM (2009 –

2015)

• Business Manager, GM (2008 -2009)

Education• Rensselaer Polytechnic Institute• Kettering University

• Ensure you have planned your session tightly and that your presentation looks good and organized and facilitate Sandra to understand your objective.

• During the meeting, be quick and spontaneous. Focus more on understanding the nature of issue and deriving a solution for the same. Sandra is more interested in how you can help her.

• Ensure that your communication style is sharp and concise, focusing on addressing the solutions for the problems that Sandra faces.

• During the meeting, use a comparative approach where you compare your product/service with others in the market in order to leave a lasting impression on Sandra

• Try to convince Sandra that your product/service and its price is the best that she is going to get in the market.

• Be prepared to address Sandra’s queries else she may lose interest and think that you are only there sell your product/ service

• Back your claim that Sandra is getting the best deal when compared to what others competitors might offer with strong facts, else it’s a deal breaker for her.

• If you're unable to understand and articulate Sandra’s precise requirement, then it's a deal breaker for her

MethodicalVery close attention to details and preference for structure in their work.

Persona Communication Tip Decision Urgency Deal BreakerMeeting Guide

Challenge drivenChallenge driven people look at problems as opportunities and find efficient solutions to them.

AdaptableAbility to thrive in different situations or environments, and adapt to changes quickly and continuously. .

Page 25: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

Source : DRAUP

25

25

Vimesh Patel – Executive Persona

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

Vimesh PatelEngineering Group Manager -Propulsion System Integration Experience• Engineering Group Manager -

Propulsion System Integration, GM

(2015 – present)

• Senior Manager - Global

Electrification Powertrain Planning &

Strategy (2007-2014)

• Hybrid Development/Validation

Engineer, GM (2005 – 2007)

• Lead Systems Engineer/Project

Manager, GM (1998 -2005)

Education• Indiana University Bloomington• University of Michigan• Purdue University

• Vimesh decides on products and services after having a hands-on experience of the same and hence prefers engaging with subject experts with strong technical knowledge.

• During the meeting, be quick and spontaneous. Focus more on understanding the nature of issue and deriving a solution for the same. Vimesh is more interested in how you can help him.

• Vimesh is likely to engage more if the pitch is precise and substantiated with facts and logic with proper use of technical terms.

• Ensure that you’re honest about your product and do not exaggerate or embellish its virtues a lot.

• During the meeting, use a comparative approach where you compare your product/service with others in the market in order to leave a lasting impression on Vimesh

• Try to convince Vimesh that your product/service and its price is the best that he is going to get in the market.

• Do not make the mistake of oversimplifying features of your product/service while explaining them to Vimesh

• Back your claim that Vimesh is getting the best deal when compared to what others competitors might offer with strong facts, else it’s a deal breaker for him.

• If you're unable to understand and articulate Vimesh’s precise requirement, then it's a deal breaker for him

Persona Communication Tip Decision Urgency Deal BreakerMeeting Guide

Challenge drivenChallenge driven people look at problems as opportunities and find efficient solutions to them.

Technology LeaderAbility to look at ways of revolutionizing products or industries through technology disruption

PioneerConstant endeavour to try out new things and find ways to do something better

Page 26: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

AGENDA

Ø Details on GM’s technology focus areas

q Strategic Priorities

q Competitive landscape

q Technology stack and current vendor ecosystem

q Key decision making and buying hubs

Strategy Teardown

GM Strategic Overview

Technology Focus Areas

01

02

Electric Vehicles (EV)2.1

Autonomous Vehicles (AV)2.2

Mobility2.3

Page 27: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

27Source : DRAUP

Level 1Driver Assistance

Level 2Partial

Automation

Level 4High Automation

Level 5Full Automation

2012 2014 2016 2018 20202010 2022

Level 3Conditional Automation

Capitalize Level 5 capabilities to integrate

level 3 SuperCruise in Cadillac

Deploy Fleet of self-driving Bolt EVs for

ride-hailing service in US by 2019

Launched Semi-autonomous Cadillac CT6

equipped with self-driving system ‘SuperCruise’

Waymo & Uber skipped semi-autonomous levels

to focus on level 5 integration with OEMs

GM Tesla Ford Waymo UberProduct focus Integration focus

Level 0No Automation

GM’s out-of-the-box AV efforts are evident in their deployment strategy trying to monetize each level of

Autonomy

GM realised that to attain technology leadership in the

industry EV focus is not enough.

Failing to build AV expertise will create a technology

dependence in future towards giants like Waymo

(Google), Uber etc.

AV Positioning Strategy: Apart from building a strong EV foundation, GM placed autonomous vehicles as a top priority and defined commercialization strategy to stay ahead of other contenders

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 28: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

28Source : DRAUP

2016-2018 2019-2025

Evolve as Full-stack Self-driving Technology

Leader

Capitalized GM Cruise capabilities and launched Level-2 Cadillac CT6 to keep up with frontrunners like Tesla, Ford etc.

Strong EV foundation helped GM integrate EV and AV technologies to mass produce 130 self-driving Bolt EV prototypes

Launched “Cruise Anywhere” Beta app to test run self-driving ride hailing service for GM Cruise employees

Deploy driverless, all-electric Chevy Bolts without steering wheels through ride-hailing in San Francisco and Phoenix areas.

Integrate Level-3 ‘SuperCruise’ controls across all Cadillac models

• Launch Autonomous ride-hailing service across major cities in US

• Level 2/3 ‘SuperCruise’ automation in all GM vehicles

2017

2017

2018

2019

2020

2030

Vision & Roadmap: GM setup practical and feasible goals that could ease their way to emerge as a full stack self driving leader

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 29: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

29Source : DRAUP

Launch Level 5 and then establish Level 3 dominance

Focus on Level 5 to establish AV integration leadership

Focus on Level 5 to establish AV integration leadership

Embed vehicles with AV capabilities and deploy through OTA updates

Skip Level-3 and focus only on level-5

2016 2018 2020 2023 2025Deploy Fleet of Level-5 Bolt EVS

Level 2 Level 3 Level 4 or above

Level-2 “SuperCruise”

Integrate advanced “SuperCruise” in GM Lineup

Deploy Fleet of robotaxis

Partner with automakers to deploy full stack AV solution

Achieve 7.0 million test miles to prove AV domination

Deploy Fleet of AV ride-hailing services

Partner with OEMs to deploy full stack AV

Test phase: Uber’s Self-driving ford fusion and Volvo XC90

Rollout Level-5 in Autopilot-2 embedded vehicles through OTA updates

Level-2 Auto-Pilot Model S & X

Level-5 hardware Embedded in to “AutoPilot-2” Tesla lineup

Level-2 integration Rollout Level-5 Self-driving Ford fusion for ride-hailing and door delivery services

GM will prove technology expertise by deploying Level-

5 ride-hailing service and integrating the expertise in

SuperCruise System to achieve Level-3

Unlike other Level-5 contenders GM will neither follow a step-by-

step approach nor skip a level.

GM visions to have a portfolio of vehicles that will have some form of

electrification and autonomy

AV Commercialization Roadmap: Capitalize AV capabilities to establish as a self-driving expert and then integrate Level 3 system in GM’s EV portfolio globally

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 30: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

30Source : DRAUP

2016 2018 2020 2022 2025

Level 2 integration with Cadillac CT6

hybrid

Deploy Level 5 Bolt EV Fleets

Level 3 integrated Cadillacs

GM integrates all EVs with some level of autonomy

Test Level 5 in Jaguar I-Pace

Test Level 5 in Chrysler Pacifica

Partner with OEMs to deploy AV technology.

Test self-driving with a fleet of ford

fusion

Test Self-driving with fleet of Volvo

XC90

Partner with OEMs to deploy AV technology

Waymo & Uber are eyeing on showcasing their AV

integration capabilities than AV-EV integration

Testing self-driving with a fleet of ford

fusion hybrids

Deploy self-driving with a fleet of ford

fusion hybrids

Integrated level 2 in tesla model S & X

Integrated level 5 capable hardware in Tesla Lineup

Activate Level5 in all models

through over-the-air updates (OTA)

Tesla’s diffidence on LIDAR based autonomy caused

their delay in achieving level-5 that helped GM to

capitalise and stay forefront in the competition

Although Waymo and Uber are strong contenders, GM

positioned themselves towards a self-driving EV player like Tesla

that is focused on safe and sustainable transportation.

Ford’s latency in development of successful EV keeps them out of this

EV-AV race

AV-EV Integration: GM realized AV commercialization has to be in the direction of integrating Cruise capabilities with Bolt EV to gain dominance in the EV-AV technology confluence

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 31: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

31Source : DRAUP

Google Cybersecurity Android Auto Waze

Lumedyne Technologies 510 Systems

Security Connectivity HD Mapping Sensor Fusion Automation control system

Full Stack AV Solution

OnStar Strobe Cruise AutomationUshr

Ford Sync Civil Maps Velodyne Argo AI

Acquisition Investment Partnership Inhouse

Overall Stack Rating

High Medium Low

Otto & Geometric IntelligenceDecartaUber Technologies

IntelBoschMapBox

Company can’t afford to delay deployment owing to

the demand for LIDAR. Hence acquired Strobe that assures their competence in

an AV must-have.

GM’s acquire and invest AV strategy is a contrast to their

traditional initiatives of spending minimal on

acquisitions

The company has invested across the tech stack to

ensure that the capabilities are unique among other

contenders

AV Capability Deep-dive: Acquisition of Cruise Automation and Strobe elevated GM’s position in the Self-driving race and is the only traditional automaker to possess Core AV capabilities

Note: Analysis is based on the DRAUP’s vendor ecosystem module, updated in July, 2018

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32Source : DRAUP

$3.30 Bn

1000

2100

Expand talents in Cruise for ML,

Security and Mapping capabilities

Intel-Mobileye

Consortium BMW Group

PartnersNvidia

Consortium

FCA

Toyota

Audi*

Jaguar

Delphi Valeo

Volvo

Honda

Daimler

Tesla

Bosch TomTom

Volkswagen

Qual-

comm

Continen-

tal

NXP

The company’s leaders had to forego the product-centric

vision and eye AV as a technology to claim the

throne in self-driving battle

GM had to choose between the status of being a “Full-stack AV

player” that has hands-on control or an “AV partner” that relies on traditional auto supply

chain for procurement.

AV Skill development: Acquisition of Cruise automation and cash infusion from SoftBank partnership enabled GM to operate independently outside the traditional consortiums

Note: Analysis is based on the DRAUP’s vendor ecosystem module, updated in July, 2018

Page 33: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

33Source : DRAUP

System Engineering &

Functional Safety

Feature

Development

System Integration

(Middleware)

SoC Testing, Physical

Design

Sensor Fusion

Sensor Testing & Validation Sensor Design Software

• RADAR• LIDAR• Ultrasonic• Camera

• Camera Module Reference Design• Radar Module Design• Multi-Sensor Hub Reference

Design

Physical Design & FPGA/ SoC Testing

• SoC Verification• SoC Validation• Burn-in stress testing

ECU platforms Maps & Navigation

Sensor Perception

• Night time Pedestrian detection• Distance and Angle Estimation• Pedestrian, cyclist detection• Path planning & object tracking

Vehicle Control Systems Data Analytics &

Cyber SecurityGPS/INS-based vehicle state estimation, 3D mapping and localisation

• Driver Assist Systems• Emergency Breaking• Steering Control

• OTA Software Management

ADAS Algorithms Computer Vision/ML Virtual Environment

Simulation & Testing

Prototype Testing &

Validation

System Safety System Modelling

System validation including performance validation

Validation of autonomous features against diverse road scenarios

System Architecture alignment to the autonomous vehicle’s mission

• Image Processing and Machine Vision

• Traffic Incident readiness and ML

• Virtual environment development and data collection

• Integration software platform

• Platform testing

Algorithm development and calibration, validation, and functional safety.

Outsourcing Intensity

Co

mp

on

en

ts &

Ha

rdw

are

Fu

ll S

tack

Pla

tfo

rms

Partnership Opportunities: High partnership opportunities in System Engineering, System

integration & Feature development.

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 34: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

34Source : DRAUP

LocationWarren, MichiganGreater Detroit Area

Autonomous Headcount800-1000

R&D Spend$ 1.0 Bn

Center LevelHQ & Hub

Key Influencers

Dan AmmannPresident

Pamela FletcherVP, Autonomous & EV

Aaron SullivanEngineering ManagerAutonomous system

GM Warren Technical Centre

Key Influencers

Kyle VogtCEO

Daniel KanCOO

Cruise Automation

LocationSan Francisco Bay Area

Autonomous Headcount1000-1200

R&D Spend$ 1.5 bn

Center LevelHub

Key Autonomous vehicle Activities

Key Profiles

• Autonomous Driving Software Engineer

• Autonomous Driving Controls Engineer

• Autonomous Vehicle System Safety Engineer

• Autonomous Validation Engineer

• Autonomous Performance Engineer

• Algorithm Design and Development Engineer

• Development and integration of analytical algorithms and tools for autonomous vehicles.

• Development of Simulation platform for testing and simulating autonomous cars

• Autonomous system integration with hardware and software redundancy, fault-tolerant focus

• Driver modeling/machine learning development/integration

• Functional safety, hazard analysis, risk assessment

Key Profiles

• Autonomous Driving Software Engineer

• GIS Mapping Technician

• Autonomous Security Engineer

• Self-driving systems Engineer

• Computer Vision Engineer

• Network Engineer

Key Autonomous vehicle Activities• Computer vision and LIDAR-based solutions for

robotic perception• Design, implementation and support of network

monitoring and alerting systems• System and sub-system level requirements for

perception and localization software• System and subsystem level validation planning

and execution• Safety analysis and gaps coverage• Drawing and semantic annotation of road maps• Inspecting map labeling to ensure compliance for

organizational standards

AV Buying Centres: Warren & Bay area are the top buying hotspots of GM’s self-driving technology.

Note: Global Footprint data curated by DRAUP and updated in July, 2018

Page 35: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

35Source : DRAUP

Technology Leadership12 Key Executives (Including President, VPs and Directors)

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

VP & CXO

Directors

Dan AmmannPresident

Autonomous vehicle Strategy LeaderTop Leader

Pamela FletcherVP, Autonomous & EV

David PrystashCFO, Purchasing, and Supply

Chain

Joseph BuckDirector, Cybersecurity Autonomous platforms

Mike WahlstromDirector, Autonomous Vehicle

System Engineering

Christopher KinserDirector, Autonomous Vehicle

John CappDirector, Global safety strategy

Lance SmithDirector, ADAS Innovation

Ben AblerDirector, Mobile

Apps/connected apps

Aaron SullivanEngineering Group Manager

Autonomous system validation

Bing DengProgram Manager, Next-gen

Super Cruise

Managers & Buyers

Adam LucacelGlobal Software & Hardware Buyer

IT Security, Autonomous Vehicles, Infotainment, & PC/EDWS

Key Leaders & Influencers

Page 36: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

Source : DRAUP

36

36

Aaron Sullivan– Executive Persona

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

Aaron SullivanEngineering Group ManagerAutonomous system validation

Experience• Engineering Group Manager -Autonomous

system validation (2016-Present)• Energy Systems Integration Engineer

(2015-2016)• Engineering Group Manager- Advanced

Tech (2012-2014)• Hybrid Lead Development Engineer (2010-

2012)• EcoCAR Technical Lead (2008-2011)• Development Engineer (2001-2007)• Project Engineer (1997-2001)

Education• University of Wisconsin-Madison• North Carolina State University

• Aaron would like to discuss the product/service with a subject matter expert who can help him answer his product/service queries

• Aaron always wants the technically best offering and expects the technical superiority to be highlighted. Product/Service's flexibility is also key for decision making.

• Aaron's decision-making process will be smooth when the meeting is done with a data rich presentation

• Over-simplification of Product USP will not help as Aaron will be expecting the complex product specifications that will help him believe on your Product/service more.

• Aaron expects very short and succinct meetings and hence sticking to the point in communication is helpful

• Paul will most likely seek additional information prior to making a decision.

• You can expedite the decision –making process by providing additional data, relevant case studies, and other references.

• If you have good knowledge about the product/service you're offering, along with the relevant industry and emerging trends, Aaron is more likely to make a decision in a short duration.

• Don't come across as desperate to sell your product/service to Aaron. Instead, assist him in the decision-making process by convincing that your offering will enhance his life/business for the better.

• Engaging in small talk to build a rapport with Aaron might not yield results

Persona Communication Tip Decision Urgency Deal BreakerMeeting Guide

RationalA rational decision maker will rely on facts, figures, data and will try weighing all the options before he can take a decision to act.

Technology LeaderTechnology leaders are disruptive innovators who look at ways of revolutionizing their products or industries.

ReliantBeing reliant indicates the likelihood of being loyal to a product or service in the long run.

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Source : DRAUP

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37

Adam Lucacel – Executive Persona

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

• Adam decides on matters by keeping the future picture in mind. Hence, ensure to pitch the longevity of the product/service and prepare solutions for queries on future Challenges

• Adam is not interested in knowing what your product/service is all about, but rather in how it can be of help to him. So be specific and not turn him off by giving vague information.

• Ensure that your communication style is sharp and concise, focusing on addressing the solutions for the problems that Adam faces.

• Be warm and

enthusiastic about the meeting. Informal

conversations will help build rapport

with Adam

• Adam will most likely probe and come up with a lot of 'if' and/or 'but' situations, for which you need to be prepared. If not, he will lose interest and think that you're only interested in selling your product/service, rather than offering solutions to his challenges or problems.

• If you don't follow up or respond to Adam promptly,

or show any disrespect towards

human values, it could be a deal breaker..

• If you're unable to

understand and articulate Adam's precise

requirement, then it's a deal breaker

for him/her.

VisionaryAbility to look at the bigger picture, keeping

the future in mind

Persona Communication Tip Decision Urgency Deal BreakerMeeting Guide

Challenge DrivenAbility to look at problems as challenge

and find efficient solutions to the same.

Adam LucacelGlobal Software & Hardware Buyer

Experience• Global Software & Hardware Buyer for IT

Security, Autonomous Vehicles (2016-Present)

• Global Commodity Manager for Plastics-Detroit Thermal Systems (2015-2016)

• Co-Owner & Managing Partner- GR Auto Gallery (2013-2015)

• Buyer- Johnson Controls (2012-2014)• Founder & President- A to Z Machinery

(2005-2010)

Education• Wayne State University• Western Michigan University

PersuasiveAbility to persuade someone to do or

believe something through reasoning or the use of temptation.

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Source : DRAUP

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38

Ben Abler – Executive Persona

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

• Ben decides on matters by keeping the future picture in mind. Hence, ensure to pitch the longevity of the product/service and prepare solutions for queries on future Challenges

• Ben is not interested in knowing what your product/service is all about, but rather in how it can be of help to him. So be specific and not turn him off by giving vague information.

• Ensure that your communication style is sharp and concise, focusing on addressing the solutions for the problems that Ben faces.

• Be warm and enthusiastic about the meeting. Informal conversations will help build rapport with Ben

• Ben will most likely probe and come up with a lot of 'if' and/or 'but' situations, for which you need to be prepared. If not, he will lose interest and think that you're only interested in selling your product/service, rather than offering solutions to his challenges or problems.

• Be prepared to address Ben’s queries else he may lose interest and think that you are only there to sell your product/ service

• A unique and innovative solution that can disrupt automotive industry will ensure greater likelihood of your product/ service being purchased by Ben

• Back your claim that Ben is getting the best deal when compared to what others competitors might offer with strong facts, else it’s a deal breaker for him

VisionaryAbility to look at the bigger picture, keeping the future in mind

Persona Communication Tip Decision Urgency Deal BreakerMeeting Guide

Challenge DrivenAbility to look at problems as challenge and find efficient solutions to the same.

Ben AblerGlobal Senior Manager, Mobile Apps Engineering, Connected Ecosystem Integration, Product Development

Experience• Global Senior Manager, Mobile Apps

Engineering (2015-Present)• Senior Manager, Collaboration

Development (2012-2015)• Manager & Senior Architect, OnStar (2010-

2012)• Director, Application Development, Digital

Information Technology- Jack Morton Worldwide (2008-2010)

Education• Carnegie Mellon University• Wayne State University• Western Michigan University

MethodicalVery close attention to details and preference for structure in their work.

Page 39: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

AGENDA

Ø Details on GM’s technology focus areas

q Strategic Priorities

q Competitive landscape

q Technology stack and current vendor ecosystem

q Key decision making and buying hubs

Strategy Teardown

GM Strategic Overview

Technology Focus Areas

01

02

Electric Vehicles (EV)2.1

Autonomous Vehicles (AV)2.2

Mobility2.3

Page 40: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

40Source : DRAUP

Full-stack Mobility Player- GM has emerged as a full-stack mobility provider leveraging its Maven and Cruise capabilities

From Ride-hailing to P2P carsharing, GM is not leaving any space vacant and ensures that the company’s presence

is felt by other mobility giants like Uber, Avis etc.

GM redefined their business as an automotive player and started playing as a transportation player

P2P carsharing is a model that enables value creation to the company as well as their customers ensuring attraction of customers

into GM mobility ecosystemRide

hailing

RideSharing

Car Rental

Car as a Subscription

Car-Sharing

GM

pla

ys a

cros

s w

hole

mob

ility

spa

ce

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

Page 41: GM Strategy teardown - Amazon S3...About GM GM Brands Headquarter: Greater Detroit Area, United States Revenue (2017): $145.58 billion R&D Spend (2017): $7.30 billion Revenue CAGR

41Source : DRAUP

Individual

Enterprise

Gig Drivers

Ride Hailing & Sharing

Car Rental Car Pooling Car as a

SubscriptionCar

Sharing

Fleetrental

Fleet Leasing

Rent for Delivery

Corporate Car-Sharing

Rent as a Taxi

GM is clearly building an ecosystem that is aimed towards the new-age customers who are redefining mobility and vehicle

ownership.

Targeting new customer groups & exploring new vehicle use-cases is vital for sustaining dominance

in Mobility

Explore New Business models- Exploring use-cases and building an ecosystem around it shows GM’s intent to become a mobility leader

Competition Intensity

GM

exp

lorin

g al

l ave

nues

to

stan

dout

from

mob

ility

cro

wd

Intense battle

Space to Innovate

Explore to Win

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

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42Source : DRAUP

Geo-location

Device’s Location Navigation

• Core Location Framework• Google’s Location API’s

• Mapping integration• Mapping API

Partnering Intensity

Communication

Payment

Web & Mobile

Notifications Inter-App Communication

• push notification services• SMS• email

• Driver-rider app communications

Cash Payment Offers & Discounts

• Customized offer codes• Rider/Driver credit points

Online/app payment

• Payment gateway• E-wallet• Card payments

Web Mobile

• Web Server• Rendering, building and

handling

• App Development and maintenance

Server Data Storage & Analytics Network

• Long term data storage• Distributed storage

and analytics• Cloud management

• Network devices data collection

• Development and maintenance

• Searching and Visualizations• Routing and Service discovery• App provisioning

Infrastructure &

Storage

Partnership Opportunities: Mapping, App-development and maintenance and data storage &

analytics are key mobility technology partnership areas.

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in July, 2018

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43Source : DRAUP

LocationWarren, MichiganGreater Detroit Area

MobilityHeadcount800-1000

R&D Spend$ 600 million

Center LevelHQ & Hub

Key Influencers

Dan AmmannPresident

Paul PebblesMaven CTO

GM Warren

Technical Centre

Key Influencers

Lindsay FarlowLab Director

GM 2908

Innovation lab

LocationKitchener, Canada

MobilityHeadcount30-50

R&D Spend$ 400 million

Center LevelSatellite

Key Mobility Activities

Key Profiles

• Carsharing Technologist

• Data Scientist

• Big-data Analyst

• Software Architect

• Application developer

• Telemetry Analyst

• Simulation Platform Project to develop a large simulation platform for future mobility analysis, ride sharing driver-rider matching algorithms, car sharing system design and optimization, real-time vehicle relocation for car sharing and travel demand forecasting.

• Knowledge Management System to analyze performance trends and identifying future business opportunities

• Manage or assist various product lines for the business, including: Maven car-rental business, public transportation and shuttle systems, billing process for consumer and rent-to-work customers, and enhanced communication strategies for customers.

Key Profiles

• Android Multimedia Developer

• UX Designer

• Software Engineer

• Algorithm Engineer

Key Mobility Activities

• Explore and experiment with advanced smartphone applications, and new ride-sharing services and approaches.

• Explore new partnering opportunities to incubate new ideas for urban, multi-modal transportation systems that combine public transit, ride-sharing

AV Buying Centres: Kitchener is a key buying centre that is exploring new partnership opportunities towards new-age mobility business models

Note: Global Footprint data curated by DRAUP and updated in July, 2018

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44Source : DRAUP

Technology Leadership12 Key Executives (Including President, VPs and Directors)

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

VP & CXO

Directors

Dan AmmannPresident

Mobility LeaderTop Leader

Katherine Lippman, EsqHead of New Business &

Platform Development, Maven

Lori MavisProduct Manager, Maven

Managers & Buyers

Joseph BabiBuyer

Purchasing Innovation - Global R&D - Maven

Julia SteynVice President

Urban Mobility and Maven

Lindsay FarlowDirector

GM 2908 Innovation lab

Mike SperanziniDirector

Global Connected Technologies

Paul PebblesMaven CTO

Ajai ShankarChief Strategy Officer

Urban Mobility and Maven

Catherine FurlaniCOO

Urban Mobility and Maven

Vijay IyerDirector

Urban Mobility and Maven

Derek JanisManager, Maven Market growth and acquisition

Key Leaders & Influencers

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45Source : DRAUP

Joseph Babi – Executive Persona

Note: The above analysis is based on the DRAUP’s Executive Module, updated in July, 2018

Joseph BabiBuyer-Purchasing Innovation - Global R&D - Maven

Experience• Buyer-Purchasing Innovation - Global R&D

– Maven (2014-Present)• Creator- Gameup Alarm clock (2013-2016)

• Teller- Bank of America (2010-2011)

Education• Oakland University• Oakland Community college

• Joseph would like to discuss the product/service with a subject matter expert who can help him answer his product/service queries

• Joseph decides on matters by keeping the future picture in mind. Hence, ensure to pitch the longevity of the product/service and prepare solutions for queries on future Challenges

• Joseph's decision-making process will be smooth when the meeting is done with a data rich presentation

• Over-simplification of Product USP will not help as Joseph will be expecting the complex product specifications that will help him believe on your Product/service more.

• Ensure that your communication style is sharp and concise, focusing on addressing the solutions for the problems that Joseph faces.

• Don't come across as desperate to sell your product/service to Joseph. Instead, assist him in the decision-making process by convincing that your offering will enhance his life/business for the better.

• If you're unable to understand and articulate Joseph’s precise requirement, then it's a deal breaker for him/her.

Persona Communication Tip Decision Urgency Deal BreakerMeeting Guide

Technology LeaderTechnology leaders are disruptive innovators who look at ways of revolutionizing their products or industries.

ReliantBeing reliant indicates the likelihood of being loyal to a product or service in the long run.

VisionaryAbility to look at the bigger picture, keeping the future in mind

• Joseph will most likely probe and come up with a lot of 'if' and/or 'but' situations, for which you need to be prepared. If not, he will lose interest and think that you're only interested in selling your product/service, rather than offering solutions to his challenges or problems.

• You can expedite the decision –making process by providing additional data, relevant case studies, and other references.

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