Global Player General Motors

The effect of globalization on thevarious plants spread all

over the worldDaniel Beckmann & Marje Brütt

The structure

• General information on GM

• The different brands• International activities in

2004• The 4 plants in

comparison: Lansing, Bochum, Eisenach, Gliwice

• Consequences and problems

• Berthold Huber‘s opinion and theories

Sources:• Spiegel Special

Globalization - The new world

• www.wikipedia.org• www.spiegel.de• www.gm.com

General information

• An American corporation producing engines and automobiles

• World‘s largest auto company

• Manufacturing facilities in 33 countries

• 284,000 employees around the world

• Rick Wagoner is the Chairman

The different brands

• Buick in China • Chevrolet in Brazil, South

Africa and Middle East• Daewoo in South Korea• Hummer and Saturn in

the US and Canada• Opel in Europe• Pontiac in the US• Vauxhall in the UK• Saab and Cadillac

worldwide

International activities in 2004

GM North America GM Europe

Plants 30 states Germany, UK, Belgium, Poland, Portugal, Sweden, Spain

Car sales 5.5 mn 1.7 mn

Employees 181,000 61,000

Profit $ 1.6 bn

Loss $ 976 mn

Brands Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab, Saturn

Cadillac, Chevrolet, Saab, Opel, Vauxhall

Headquarters Detroit Zurich

GM worldwide

Lansing

The employees• 3,000 employees• Average age of 48• Annual salary of

$ 60,000 + benefits and health insurance

• 5 weeks vacations• Majoritiy is member of

the United Auto Workers

The plant• Old plant was shut

down in 2004• New one was built at

city‘s periphery• 3 shifts at the same

time

Bochum

The employees of paint stop:

• 2,200€ monthly• Everey 22 month they

are sent to a health resort

• Majority is member of the IG Metall

The plant:• Opel plant since 1966• The new Zafira series

Eisenach

The employees:• About 3,500 from former

10,000• 98% are “eastern

german“• Average age of 41• Corridore shift costs an

employee about 300€

The plant:• After reunification the

most modern plant in Europe

• Capacitiy of 175,000 cars a year

• Decreased production from 36 to 28 cars an hour

• Manufacturing the Corsa and Astra

Gliwice

• Construction in 1997• 2,500 employees with an average age of 32• Mean salary roundabout 700€ a month• No need of union• As in Bochum production of new Opel Zafira

Consequences and problems

• coping outsourcing and crisis, employees are disadvantaged: wages decrease

jobs are cut

bonus reduced

• Lean hierarchie improved

• Introduction of GM-GMS

Berthold Huber‘s opinion and theories

• „the pressures are unbelievable“

• Negotiations concerning European workers to undercut one another unemployment and redundancies

• Adaption of wages

• More work for the same pay

• Flexibility is needed

• Industrial jobs have no future in Germany

Berthold Huber‘s opinion and theories

• Worker councils can ensure compliance from their management

• “What we take for granted here is actually a matter of life and death in some countries.“

• Alliances of unions transcending national interests