(Marcin, 2019)
Introduction
GM is building a better future for everyone by producing electronic vehicles (EVs) to address global climate change and become an integral part of a greener future. To achieve this, GM is developing new and innovative technologies to create and manufacture EV vehicles to help stop greenhouse emissions.
General Motors (GM) has a colorful past filled with both triumphs and failures. The purpose of this report is to provide a comprehensive analysis of General Motors, a leading automobile company. This report provides information about the company's history, market position, communication plans, and a proposal for an electric vehicle campaign with an objective. Furthermore, the report contains a SWOT analysis and a competitor analysis, as well as a breakdown of the proposed campaign budget. The purpose of this report is to identify potential opportunities and challenges for the company and to provide recommendations for improving marketing strategies and achieving its goals.
The headquarters of General Motors is in Detroit, Michigan, but the company has employees throughout the world. This demonstrates that GM is a global company with global reach and diverse workforce. GM’s employees are able to build connections through shared identities and open dialogue, no matter what their background is (n.d.). GM demonstrates its dedication to diversity and inclusion by helping underprivileged people in the Detroit regardless of their gender, ethnicity, or other characteristics. This commitment is apparent in many facets of the business' operations, including its team-based strategy for product development, which places a premium on providing customers with cutting-edge and captivating products.
The company's vehicle product lines incorporate inclusivity, and this extends to its varied workforce. The business understands the value of using the universal design process to create products that are usable by people with a range of needs and disabilities. This strategy motivates designers to create goods that are useful and accessible to all users. Because of this, GM can include staff members with disabilities in every step of the product planning process, and in some cases, they might even take the initiative (Weinberger, n.d.).
GM has pioneered many innovations in the automotive industry, such as the Positive Crankcase Ventilation (PCV) valve, which was soon adopted by the rest of the industry. Other notable development include the Electrovair, which tested the viability of electric power for passenger cars and hydraulic valve lifters for the Cadillac V-16 (n.d.).
The company, which employs more than 155,000 people, has worked with its partners to improve the abilities and skills of its current workforce (Sherman, Harris, 2018). The diverse workforce of the company also includes people who are fluent in 75 different languages. The company is a global organization that operates across 22 time zones and six continents (n.d.). The company is strongly committed to inclusion. GM understands how important it is for its employees to constantly focus on their education and professional development.
GM is becoming a leader in green energy, using EV vehicles and technology to move away from the past and towards an eco-friendlier future. Since 2020, GM has been committed to manufacturing EV automobiles, and the company plans to invest $35 billion in EV and AV product development by 2025, surpassing its investment in gas and diesel. These investments will create thousands of new, high-paying jobs in the US (n.d.).
Company Information: A Brief History
In 1908, William Durant founded General Motors in Detroit, Michigan. In 1909, GM acquired Cadillac, Oakland, Rapid Motor, and Reliance Motor Truck, which became Pontiac. As a result of GM's manufacturing and production techniques between the 1920s and 1930s, automotive design, development, and construction improved significantly. Among these innovations was the creation of the first successful lacquer paint system for automobiles, which sped up vehicle production (n.d.).
A financially challenging time was during the 2008-2009 financial crisis. During this crisis, the US government intervened to prevent GM and Chrysler from going bankruptcy by providing financial assistance or bailouts. It was a controversial decision, with some arguing that it was government overreach, while others argued that it was necessary to prevent a more significant economic collapse (Wharton School, 2019).
The CEO of GM, Mary Barra, addressed Congress about a defect in the ignition switch that caused the deaths of over a dozen people in 2014. In her testimony before Congress, Mary Barra apologized for those who had been affected by the faulty ignition switch. She acknowledged that GM failed its customers and promised to do better. Barra outlined a comprehensive plan to prevent such tragedies from happening again, including the re-evaluation of crisis management processes at the company (Sherman, Harris, 2018). She also emphasized the importance of a culture of transparency and accountability within the company. (n.d.). While the company's reputation has been severely damaged by this scandal, GM has taken necessary steps to prevent similar scenarios from occurring again.
In recent years, General Motors (GM) has emphasized its switch to electric vehicles (EVs). In order to achieve the company's goals, this shift is necessary. In order to achieve its new global goal of carbon neutrality by 2040, GM plans to invest $35 billion by 2035 to reduce carbon emissions from its operations and products by 75%. In addition to electrification and autonomous vehicle technology, the company will focus on renewable energy, and sustainable supply chain management. Additionally, it plans to offer 30 all-electric models by mid-decade, achieve 100% zero-emissions sales by 2035, and work with policymakers to promote electric vehicle adoption and infrastructure development (2021).
Through its extensive history, General Motors has experienced both successes and challenges. A new phase of opportunities and challenges awaits GM with its renewed commitment to electric vehicle (EV) technologies and processes, as well as its commitment to carbon neutrality. In the following section, a SWOT analysis will be performed to determine the company's strengths, weaknesses, opportunities, and threats
Strengths
• A strong commitment to innovation and “zero crashes, zero emissions, and zero congestion” (n.d.) is evidenced by the company's vision, values, and behaviors.
• GM has donated over $50 Million Dollars to local nonprofits in Detroit, MI towards education and employment opportunities This has been expressed by the company as an "investment into the planet” (n.d.) and ensures internal and external stakeholders that GM is giving the Detroit community a voice.
• GM is very proactive when it comes to digital marketing by having a strong online presence via social media platforms like Facebook, YouTube, Twitter, and LinkedIn. Social media and GM-sponsored websites ensure stakeholders receive external and internal communications in a variety of ways.
• Diverse backgrounds, cultures, and experiences make up the company's workforce, demonstrating the commitment to diversity and inclusion. In addition to cultivating a more inclusive workplace, GM's emphasis on diversity helps the company better understand and serve its diverse customer base (Weinberger, n.d.).
Weaknesses
• GM is not yet creating or manufacturing electric bicycles, trams, or other larger public transportation vehicles.
• Foreign automakers like Volkswagen, Kia, Hyundai, and Toyota, which can source parts for new electric vehicles and have lower production costs, are in competition with domestic automakers like GM.
• Previous recalls and other related issues have damaged the company's reputation as a brand.
Opportunities
• GM has an opportunity to demonstrate its commitment to sustainability by collaborating with other automakers to bridge the gap in EV development. This collaboration could lower consumer costs while also reducing reliance on fossil fuels (n.d.).
• GM's profitability can be boosted by continued investment in the development and production of EVs.
• GM should continue to focus on the Chevy Bolt since it is used as the foundational, base level product for EV and self-driving vehicles in development (Wayland, 2017).
Threats
• Possible disagreements with labor unions.
• Manufacturing costs are rising due to rising raw material prices which includes the cost of shipment.
• During periods of economic crisis, or similar, less people would be able to afford EVs which could indirectly cause share prices to fall.
• Other automakers are investing in electric vehicles, and they are increasing competition in the industry (Günther, Wagner, 2015). This competition may increase market volatility and contribute to lower share prices.
EVs: Powering GM’s Electric Revolution
In the past several years, General Motors has taken significant steps towards developing electric vehicles, including the introduction of new ranges of EVs at a variety of price points. One example is the GMC Hummer, which boasts a 329-mile driving range because of its Ultium 24-module battery system. This battery’s pouch-style cells can be stacked horizontally or vertically, making it unique. The vehicle produces 1,000 horsepower and 11,500 pounds of torque, according to GM. Furthermore, it offers segment-exclusive driving modes such as Watts to Freedom, Crabwalk, and Extract Mode. As the first GMC electric vehicle with Regen on Demand and Super Cruise technology, the Hummer has an 800-volt, 350-kilowatt “fast charging” capability (2021). In other words, the Hummer battery is different from others because it may be configured in several ways to fit into an automobile. Hummers are designed with a lot of power and special ways of driving that other cars lack. Moreover, it has fast charging technology.
While the new Hummer's price tag of roughly $90,000 USD may be too costly for some, General Motors realizes the need to provide more inexpensive electric vehicle choices. As a result, they introduced the new electric Chevrolet Bolt EV and Chevy Equinox EV (Chevrolet, n.d.) which are both less than half the price of a Hummer. These automobiles have a number of technological innovations, and Chevrolet and GM's selling pitch is that charging the car is very accessible and user-friendly. Furthermore, the company claims that the automobile is compatible with over 40,000 charging stations across the United States and Canada, dispelling myths about where to charge it (2020).
Since 2017, Chevy Bolt EV owners can download an energy assist app on the Apple or Google app stores to help them plan and manage their routes more efficiently. Customers can use this app to find charging stations along their route or in the area, receive real-time alerts if their range projections change dramatically, and find out when their cars should be charged during peak electricity usage periods to save money and time. All GM EV automobiles can use this app feature, making it a useful tool for planning getaways and trips (2020).
Previously, GM offered gasoline and diesel-powered predecessors such as the Hummer and H2, which were considered “gas guzzlers”. These vehicles were not environmentally friendly and were not cost-effective for consumers (Schulz, 2006). Times have changed, and GM recognizes the need to transition to more eco-friendly and affordable options.
Industry and Market Information
Since 2021, the electric car market in the United States has more than doubled, with sales exceeding half a million. The overall US car market recovered as well, but electric vehicles more than doubled their market share to 4.5%. Tesla continues to dominate the US electric car market, accounting for more than half of all electric units sold. Tesla's market share fell from 65% in 2020 to 35% in 2021 as other automakers introduced new electric models (International Energy Agency, 2021).
GM is now manufacturing more affordable EV vehicles in regards to the Chevrolet EV. The company is releasing the newest EV Equinox in 2024 (n.d.) which makes it an affordable option for families who may not have been able to consider an EV before. As the EV market continues to grow, there has been a new wave of companies delving into the market. The industry will continue to have steady growth. However, it will take some time to catch up to its gas and diesel counterparts. The innovation GM is consistently producing will result in an eventual future without fossil fuels in the automotive industry.
Competitor Analysis
General Motors (GM) has long been associated with the automotive needs of the United States, producing everything from pick-up trucks to family vans to sports cars. Other automakers have left their imprint on popular culture, but GM remains a household name. In the electric vehicle (EV) market, however, GM faces stiff competition from, most notably, Tesla.
Both Tesla and General Motors (GM) are American-based automakers with a lengthy history in the sector. Both firms have made significant expenditures in electric vehicles in recent years, with Tesla at the forefront of the market and GM following behind with significant spending in the research and manufacture of electric vehicles. A major difference between the two companies is that GM offers a wide range of vehicles, while Tesla primarily concentrates on electric vehicles.
Other competitors in the EV market include Nissan, Smart Car, Mitsubishi, BMV, Toyota, Ford, Honda, Fiat, Mercedes, Audi, Volkswagen, and the like. As of 2016, the most popular EVs in the United States include GM’s Chevy Volt, the Nissan Leaf, the Tesla Model S, Toyota Prius Plug-in, and the Ford Fusion Energy. Going forward, it will be important for GM to ensure that their EVs are made available nationwide so that there is a greater chance of higher sales (Reichmuth, Anair, 2016).
Tesla, led by eccentric billionaire Elon Musk, has been at the forefront of the EV automotive market since 2008, when Musk was appointed chairman of the board of Tesla Motors. Tesla Roadster was the first production electric vehicle to use lithium-ion battery cells. In just two weeks after the Roadster's debut in July 2006, the company received over 100 preorders.
By late 2008, Musk had invested more than $55 million of his own money in Tesla Motors and had become CEO to protect his investment. He reduced the company's size by firing a quarter of its employees. Tesla then expanded its product line beyond electric vehicles, announcing plans in 2015 to sell batteries for storing solar-generated energy. The following year, it purchased SolarCity, a manufacturer of solar panels. Tesla's decision to drop "Motors" from its official name in 2017 reflected the company's expanding product line.
Tesla unveiled its first pickup truck model, the Cybertruck, in 2019, which has a futuristic appearance. While GM has a long history of automotive innovation, it faces stiff competition in the EV market, particularly from Tesla's established reputation and distinctive product offerings (Salem Press Encyclopedia, 2023).
Because Tesla is deemed as a top manufacturer of EVs, any competitor will face more scrutiny. GM is a large corporation with an established brand identity that has, in the past, been associated with diesel and gasoline vehicles. Therefore, the ecologically conscious consumer will be carefully researching what GM is now offering as the company shifts to its new vision of a greener future. The campaign proposed will be certain to prioritize marketing efforts of GM’s EVs to outweigh its previous reputation. Another challenge GM will face is the selling price of its EV vehicles. GM will overcome this with competitive pricing and continued development of EV car batteries in the US.
Campaign Communication Plans
GM's marketing and sales strategy entails marketing vehicles and automotive parts around the world primarily through a network of independent authorized retail dealers which includes distributors and authorized sales, service, and parts outlets. The majority of GM's research, product development, and intellectual property costs are related to the development of new products or services, such as activities related to vehicle and GHG emissions control, improved fuel economy, EVs, AVs, and safety. In the fiscal years ended December 31, 2021, $6.2 billion, and $6.8 billion, respectively, R&D expenses were $7.9 billion, $6.2 billion, and $6.8 billion. (SEC, 2022).
An example of a previous marketing campaign is found with the 2022 GMC Hummer EV Pickup Campaign (2021). The new EV showcases an evolution from a “gas-guzzler” to an EV. In the campaign, a press release was published for the vehicle which included highlights of specifications of the vehicle. Images and videos of the Hummer were also posted. Underneath visual media, there are additional links to other press releases, informational blogs, and so on. Finally, there are two listed contacts to obtain additional information for GMC’s Customer Experience department and the Hummer EV Media Contact person.
Competitor marketing campaigns have focused on promoting EVs as a sustainable transportation solution that reduces greenhouse gas emissions and addresses environmental issues. They emphasized the positive impact of choosing an EV on the environment and emphasized technological advancements to attract customers who value innovation and seek a modern driving experience (Almansour, 2022).
This campaign will take a new direction while adapting to the continually evolving automotive market to promote GM EVs. Campaign efforts will be thoroughly backed by scientific and engineering knowledge. Like with previous GM and competitor campaigns, there will be a wealth of information about the latest innovations from EV batteries to vehicle design.
Campaign Objective
Campaign Title: Electrifying Incentives: Put Down The Pump, Pick Up The Plug
Objective: There is a drastic need to save our planet. General Motors will lead the way in promoting the benefits of purchasing our EVs and inspire an EV market revolution. At the same time, this will help GM increase its position in the EV market.
Goal: The campaign goal is to increase the amount of consumers who switch to EVs to help decrease greenhouse gas emissions.
Target audience: This GM marketing campaign will be aimed towards people who may not have access to public transportation. This will be ranging from individuals who have families to companies concerned about their own business expenses and financial overheads. In addition, the campaign will be geared towards people who are conscious about the environmental impact gasoline and diesel automobiles have on the local area and the greater community. Being that there is a wider range of EV vehicles, with a new model being introduced each year by GM, EV models will become more attainable to a broader market. The expansion of EV models will include larger vehicles like the EV Equinox.
Key message: Electric vehicles provide a higher return on investment because they require less maintenance and fuel while lowering the environmental impact of driving. Charging an EV at home is convenient, and public charging stations are becoming more widespread.
Tactics
Social media and online advertising: Because the EVs are computer-linked, it makes sense to showcase the car's capabilities through online advertising platforms such as TikTok, YouTube, Twitch, and others.
Influencer partnerships: Collaborate with social media influencers that are concerned about sustainability and the environment to share their own EV driving experiences. This will contribute to the campaign's legitimacy and generate buzz.
Public relations: Conduct media outreach to get coverage in environmental and automotive journals, emphasizing the advantages of EVs and the growing availability of charging stations.
Event marketing: Hold test drive events at local dealerships, outside of concerts or sporting events, or in busy downtown locations to give potential buyers a firsthand look at the ease and power of EVs.
Measurement
To evaluate audience interest and involvement, there will be tracking of website and social media activity, including likes, shares, and comments. There will also be data gathering of sales statistics to see how the campaign affected EV purchases.
Finally, the campaign will involve conducting customer satisfaction surveys to find areas for improvement.
Conclusion
Because of General Motors' commitment to sustainability and innovation, this campaign objective outline is appropriate. Its primary goal is to promote the benefits of EVs and to spark an EV market revolution. The general public is the intended audience, and the key message is the higher return on investment and environmental benefits of EVs. Social media advertising, influencer partnerships, public relations, and event marketing are all modern and effective ways to reach out to potential buyers.
Proposed Budget
Similar to last year’s budget report in 2022 (Securities and Exchange Commission), we will invest another $2.7 billion in this marketing campaign. We will approach our campaign in a dynamic manner, using continuing data analysis and SEO findings to adjust and optimize our plan as needed. Our budget was calculated based on previous data. Our budget was calculated based on previous data, which gives us confidence that this investment will yield significant returns.
By leveraging the latest marketing technologies and techniques, we aim to reach a wider audience and increase brand awareness. Our team is committed to delivering measurable results and staying ahead of the curve in this ever-evolving industry. We believe that this investment will not only benefit our company but also contribute to the growth of the overall market. With a clear vision and strategic execution, we are confident that our marketing campaign will continue to drive success for years to come.
Detailed Budget
Marketing Planning & Strategy
• $1 million for Market Research.
Because GM already has access to current research data, it can use more cost-effective research methods such as internet surveys or focus groups. Furthermore, GM spent money on market research prior to this campaign, allowing the campaign to devote a smaller budget to this endeavor.
• $1 million for Strategy and Planning.
To enable the cost-effective budget, GM will use previously successful strategies and planning. Furthermore, new perspectives will be sought through reasonably priced, high-quality guidance.
• $600 million for Creative Media Production.
This budget will be used to produce creative media such as television, streaming services, video, social media, the company website, and similar.
• $1 billion for Media Planning and Buying
Media planning and buying will have a $1 billion budget to buy media across multiple channels and markets.
• $800 million for Public Relations
$800 million will be invested into Public Relations to continue rebuilding GM's brand and reputation after recent controversies, including ensuring the general public that GM EVs are safe.
• $355 million for Event Marketing
The budget for event planning is $355 million, which includes insurance costs in case of unforeseen circumstances such as vehicle damage or theft.
Digital Marketing
• $5 million for Website Development and Design
• $5 million for E-mail Marketing and Automation.
• $5 million for Mobile Marketing.
Website Development and Design, E-mail Marketing and Automation, and Mobile Marketing have conservative costs of $5 million each. These activities do not require as much funding as other marketing activities and can be carried out by smaller teams or automated.
• $19.1 Million for Search engine optimization (SEO)
SEO increases a company's website's visibility and ranking in search engine results, which can ultimately drive more organic traffic and leads to the site.
• $80 million for Social Media and Video Marketing
For reaching and engaging with a large audience, social media platforms and video-sharing sites are popular and engaging channels. Furthermore, the use of social media influencers and video advertising can help potential customers understand the benefits and features of a product or service.
Analytics and Measurements
• $100 million for Marketing Analysis and Data Management.
GM investing $100 million in marketing analysis and data management for this campaign will help the campaign committee to better understand customers, competitors, and market trends. This investment can lead to more effective marketing campaigns, satisfied consumers, and so on.
• $100 million for testing and optimization.
Testing and optimization will go hand in hand with Marketing Analysis efforts.
• $50 million for Return On Investment (ROI) Analysis and Reporting.
GM can see which marketing tactics are working and which are not by spending $50 million on ROI analysis and reporting and adjust their strategy accordingly. This enables the company to make the most of its budget by investing in strategies that yield the highest return on investment.
Based on the above budget breakdown, we have a clear picture of how the $2.7 billion dollar campaign budget has been allocated. To ensure maximum ROI, we have carefully planned and distributed this budget as listed.
Conclusion
As the automotive industry continues to shift towards electric vehicles (EVs), GM faces the challenge of rising manufacturing costs. However, this also presents an opportunity for the company to invest in the development and production of EVs. By collaborating with other automakers, GM can share resources and expertise to create innovative products that meet the demands of consumers. A well-planned and executed marketing campaign will be crucial in promoting these new products and educating consumers about their benefits. To achieve these objectives, GM must carefully consider its budget proposal and product information, ensuring that they align with the company's goals and values. With a strategic approach to innovation, collaboration, and marketing, GM can position itself as a leader in the EV market while maintaining its commitment to sustainability and profitability.
GM has a strong commitment to innovation and sustainability but must address weaknesses and threats such as competition from foreign automakers and rising manufacturing costs. To take advantage of opportunities in the market, GM should invest in the development and production of EVs, collaborate with other automakers, and create a well-planned and executed marketing campaign. The budget proposal and product information will play a critical role in achieving these objectives.
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Credits:
Created with images by marcinjozwiak - "karkonosze giant mountains poland" • peteyp8 - "sixties cadillac cadi" • paulbr75 - "electric charge road sign sign" • ntnvnc - "fantasy collage composition" • aitoff - "direction road look" • Pixelkult - "media social media apps" • u_d7hddm5o - "san francisco woman electric bike" • selcukozmumcu - "hd wallpaper concept car suv" • Blomst - "tesla supercharger battery" • Ralphs_Fotos - "loading column charging station electric mobility"