General Motors Co - Company Strategy & Performance Analysis
General Motors Co (General Motors) is an automobile manufacturing company. Alongside its partners, the firm designs, builds, and markets cars, trucks and automobile parts and provides automotive financing services through its subsidiary, General Motors Financial Company. It also offers the Chevrolet Certified Service, Buick Certified Service, GMC Certified Service, Cadillac Certified Service, Ally Automotive, Ally Financial, GM Card, SiriusXM Radio, Performance Parts, ACDelco, and GM Accessories. The company sells cars and trucks to commercial fleet customers, daily rental car companies, leasing companies and governments directly or through a network of dealers. It has operations in North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. General Motors is headquartered in Detroit, Michigan, the US.
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Decline in Chevrolet passenger car and off-lease rental car sales
GMNA segment operates sales, manufacturing, and distribution facilities in the US and Canada. Under Vehicles are developed, manufactured and marketed under the Buick, Cadillac, Chevrolet and GMC brands. The segment accounted for 76.4% of the company's total revenue in 2017. The GMNA segment reported revenue of US$111,345.0m in 2017 in comparison to US$119,113.0m in 2016, a decline of 6.5%. This is primarily due to declines in Chevrolet passenger car sales and off-lease rental car sales.
General Motors combined its GMSA and GMIO segments to form GMI segment in 2017
GMI segment operates sales, manufacturing and distribution facilities in Asia-Pacific, the Middle East and Africa, and China, Brazil, Argentina, Colombia, Ecuador and Venezuela. It also has sales and distribution operations in Bolivia, Chile, Paraguay, Peru and Uruguay. This segment reported revenue of US$21,920.0m in 2017 in comparison to US$20,943.0m in 2016, an increase of 4.7%. Growth is primarily due to favorable pricing and increased wholesale volumes associated with the Chevrolet Onix in Brazil and Argentina.
Growth primarily due to tax reform legislation and the establishment of valuation allowance
The corporate segment includes certain centrally recorded income and costs such as income taxes, interest, and corporate expenditures and other non-segment specific revenue and expenses. The segment accounted for 0.2% of the company's total revenue in 2017. It reported revenue of US$342.0m for 2017 in comparison to US$149.0m in 2016, an increase of 129.5%. This is primarily due to tax reform legislation and the establishment of valuation allowance related to the sale of Opel/Vauxhall business.