General motors swot analysis 2016

Financial SWOT Analysis Fiat Chrysler Automobiles (FCA) & General Motors
Student Name: Shekhar Bhola

Roll No.00-25-4824

Program: Financial Management

Financial SWOT Analysis
SWOT investigation is a traditional device or model wherein directors characterize the most significant inner vital components of strengths and dangers of outer vital variables for qualities and shortcomings.

Fiat Chrysler Automobiles (FCA)
Strength
· Fiat Chrysler advances the organization's items, yet additionally puts resources into preparing its business group to disclose to clients how to take advantage of the items.

· The FCA Group's overall gain for 2017 was € 110.9 billion and its net benefit was € 3.5 billion.

· Fiat Chrysler Automobiles net worth finishing new undertakings and creating new wellsprings of pay to get a decent degree of profitability.( Bernardo Bertoldi 2015)

Weakness
· In 2017, the market share of FCA in some major markets decreased. Even if the decline is small, a percentage point reduction in the automotive industry is important. In Canada, and USA FCA's market share fell from 14.2% to 13% and 12% to 11%.

· FCA's expanded market share in Argentina a year ago, however, kept on declining in Brazil in the course of recent years, from 19.5% into 17.5%.

· In addition, the brand had to recall about 6 million vehicles in last two yeras due to cruise control errors and problems with the hatchback lock.

· Higher recall volumes can damage the brand image and lead to higher direct costs. Financial planning is not done properly and efficiently. Current figures of assets and cash and cash equivalents show that the company can use cash more effectively than it is now.( Vaz, Mark 2018)

Opportunity
· The brand also invests in the growth of its electric and hybrid vehicle range. Increasing demand and zero emissions to electric vehicles provide additional space for FCA for investments in such projects. This will not only help increase demand and popularity, but will also lead to higher sales and earnings.

· While FCA invests heavily in advertising, there is much more space for marketing and branding. The brand can access more digital channels to make their marketing strategies more attractive and attractive, as well as social media and their website.

Threats
· Economic fluctuations can have a major impact on the financial health of a car brand. On the one hand, currency fluctuations have an impact on revenue, and economic fluctuations in key markets can have an impact on demand there.

· Variable interest rates and exchange rates can be disadvantageous. These things affect the rate of growth and income.

SWOT Analysis of General Motors
Strength General Motors is single of the three leading traditional car products in the United States. GM's finance division announced a net profit of $ 377 million, 2018 and a net profit of $ 318 million for last three months of 2018. Total sales in 2019 are $ 14,554 compared to 14016 inches. 2018.

General Motors sold the biggest market as far as the volume of vehicles sold in China. sold in excess of 3,612 million vehicles in China, an expansion of 5 percentage benefit, and a piece of the overall industry of more than 14 %.

· Competitiveness and appeal for vehicles from General Motors clients.. For example, customers react more positively to genetically modified products than less known new brands.

Weakness
· Over dependence on the U.S. to produce most of its sales, as the company only producesover 60% of its sales in the United States.

· From Europe to Asian markets, it had to withstand strong dollar profit losses. In addition, the brand's increasing dependence on American markets depends on the growing strength of the dollar.( Haile, Meaza 2016)

Opportunity

· Fuel price trends are expected to remain low, and General Motors needs to strengthen pickup and SUV offers to take advantage of the growing market for these vehicles and increase the company's profitability. ( Kellen Odom 2017).

· With new purchases and technical knowledge acquired through an OnStar assistant, the Due to rising demand for fuel-efficient electric vehicles the acquisitions of General Motors can bring some of the best driverless vehicles and take advantage of high-end vehicles.( Gupta, & Mishra 2016)

Threats

· Numerous administrations around the globe are focused on diminishing ozone harming substance outflows and supporting eco-friendliness activities. There is consistently the peril that such ecological activities will build creation costs for automakers and make it difficult to adjust these expenses in an exceptionally serious and value touchy market.

· According to General Motors, deals of new vehicles will back off or even diminishing in the coming a long time because of the soaked market.

· Competition gets more grounded with a worldwide car creation limit that surpasses requests.

· The worldwide overproduction limit is evaluated to be more than 35 million every year.(Abhijeet Pratap 2018)

References Odom, K. (2017). General Motors Strategic Audit.

Gupta, G., & Mishra, R. P. (2016). A SWOT analysis of reliability centered aamaintenance framework. Journal of Quality in Maintenance Engineering.

Haile, M., & Křupka, J. (2016). Fuzzy evaluation of SWOT analysis. International Journal of Supply Chain Management, volume 5, issue: 3.

Bertoldi, B., Giachino, C., Bernard, S., & Prudenza, V. (2015). Fiat-Chrysler deal: looking for a good returns from M & A. Journal of Business Strategy.

Vaz, M. (2018). Ferrari’s separation from Fiat Chrysler Automobiles (Doctoral dissertation).

5