Chevrolet, also known as Chevy, is a division of General Motors (GM) that was founded by Louis Chevrolet, a race-car driver, and William C. Durant, founder of General Motors, in 1911 (Wikipedia, 2008). With a dramatic influence on the American automobile market in the 1950s and 1960s, one out of ten cars sold in the United States was a Chevy (Wikipedia, 2008). Chevrolet created an image of being the American vehicle by using slogans such as, “Heartbeat of America”, “An American Revolution”, and “America’s Best Trucks” (Wikipedia, 2008).
As of today, Chevy offers over twenty vehicles ranging from subcompact cars to medium duty commercial trucks in addition to being offered in Europe and Asia (Wikipedia, 2008). The automotive industry is highly competitive and Chevy has faired well against its competitors. The main domestic and foreign competitors for Chevy include Ford and Toyota, respectively. In order to meet consumer demands and rise above its competitors, Chevrolet has devised new strategic planning.
Chevrolet has devised new corporate strategies in order to rise above the competition in the automotive industry. With the economic decline and concern for the environment, Chevy has been able to address current and future issues to not only benefit the company but also the economy and the environment as well. There are four key points that have been addressed with the new strategy.
The first associated with the increasing gas prices and economic decline and the second issue addressing the increase in environmental awareness and concern, both leading to the development of hybrid, electric, and fuel cell vehicles in addition to the use of biofuels (Chevrolet, 2008). Chevy has also addressed the increase in environmental awareness by manufacturing parts from recyclable and renewable materials (Chevrolet, 2008). The third key point addressed was with the change in consumer demands for a more efficient vehicle.
Chevy focused their attention to developing fuel-efficient vehicles with improved EPA estimated miles per gallon. The final point addressed was the company’s poor management, which along with the two other major automobile companies, needed assistance from the government for a $25 billion dollar bailout in order to have access to low-interest loans to survive during the tough economy (Hopwood, 2008). By addressing these four concerns, Chevrolet will be able to confront the economic hardships along with their financial struggles in order to continue to rise above the rest of the competition.
Chevrolet has many strengths and weaknesses that played a role in the strategy planning. One of their primary strength is their reputation as a good, solid vehicle as expressed in one of their many slogans, “Like a Rock” (Wikipedia, 2008). Another strength is their idea of changing from “Gas-friendly to Gas-Free” to address the environmental concerns as represented on the Chevrolet’s website. A third strength of the company was listening and meeting the demands of the consumers. With economic hardships, consumers wanted more fuel-efficient vehicles and Chevy met their demands.
A weakness of Chevy was represented through management and needing assistance from the government for a bailout in order to survive. To meet the terms of the strategic planning, Chevy was able to identify a few objectives. First, the development of hybrid vehicles in order to be more fuel efficient. For example, in 2008 the Chevy developed the Tahoe Hybrid 2WD, which offered the same fuel efficiency as the Toyota Camry and because of this the Tahoe was recognized as the 2008 Green Car of the Year (Chevrolet, 2008).
In addition to hybrid vehicles, Chevy is working on electric vehicles, such as the Volt, which is to debut in 2010 and on fuel cell vehicles in which Chevy was recognized by Green Car Journal for the 2008 Green Car Vision Award, the first time the journal has recognized a limited production vehicle for forward-thinking technology (Chevrolet, 2008). Secondly, the use of biofuels by using renewable resources in order to reduce the dependency on petroleum (Chevrolet, 2008). The third objective is using renewable and recyclable materials for parts.
All of these objectives are recognized in Chevrolet’s “gas-friendly to gas-free” (Chevrolet, 2008). In conclusion, Chevrolet implementation of the new strategic plan of being environmentally friendly has been a forward progression for the company. Being able to address the economic and the public’s concerns, Chevy continues to be able to produce vehicles to meet consumer’s demands and remain one of the top selling companies in the automobile industry despite the government bailout. If the company can maintain its objectives, then the future remains to be promising for Chevrolet.