General Motors Organizational Structure

General Motors employs an organizational structure underpinned by multiple regional divisions. As a global car seller, this helps the company account for differences between the various markets it operates in. Each division also oversees support functions such as finance, information systems, purchasing, and logistics.
A secondary component of GM’s organizational structure is the two business-type divisions of GM Automotive and GM Financial. The former houses each regional division, while the latter pertains to vehicle leasing, financing, maintenance, and insurance.
GM is also supported by numerous corporate, function-based groups that are headed by a so-called Corporate Officer. Some of these groups include GM China, Global Information Technology, Accounting Services, and Global Communications. There is also a 13-member Board of Directors headed by current CEO Mary Barra.

Department	Type of Structure	Structure Details	Advantages	Drawbacks
Global Product Development	Functional Structure	– The Global Product Development division follows a functional structure, organized by specific functions such as engineering, design, and research and development. Teams focus on designing and developing vehicles, components, and technologies.	– Efficient utilization of specialized skills in product development. Clear functional roles and responsibilities.	Potential challenges in coordinating cross-functional efforts. May result in siloed operations and slow decision-making in complex projects.
Manufacturing and Supply Chain	Divisional Structure	– Manufacturing and Supply Chain is organized into divisions or business units responsible for manufacturing operations in different regions or for specific vehicle types. Each division oversees its manufacturing plants, logistics, and supply chain operations.	– Tailored approach to manufacturing needs in various regions. Quick response to specific market demands. Specialization in manufacturing processes.	Potential coordination challenges between divisions. May result in duplication of efforts or inefficiencies in supply chain management.
Sales, Marketing, and After-Sales	Divisional Structure	– This division operates with a divisional structure, focusing on regional sales and marketing activities. It includes divisions responsible for North America, Europe, Asia, and other regions. Each division develops marketing strategies, manages dealerships, and handles after-sales services.	– Customized marketing strategies for different regions and customer preferences. Quick adaptation to regional market conditions. Specialization in sales and after-sales services.	Potential coordination challenges between regional divisions. May lead to variations in marketing and sales strategies across regions.
Finance and Accounting	Functional Structure	– Finance and Accounting functions follow a functional structure, with specialized teams for financial reporting, auditing, and financial planning and analysis. Each team handles financial matters, including budgeting, financial reporting, and risk management.	– Efficient management of financial resources and reporting. Specialized expertise in financial matters.	Potential challenges in cross-functional collaboration with other business units. May not align with specific business divisions.
Research and Development	Functional Structure	– The Research and Development division operates with a functional structure, with specialized teams focused on advanced research, innovation, and technology development. Teams work on future automotive technologies, such as electric vehicles, autonomous driving, and alternative fuels.	– Efficient focus on advanced research and technology development. Specialized expertise in cutting-edge automotive technologies.	Potential challenges in coordinating research efforts across different technology areas. May not align with specific business divisions.
Information Technology	Functional Structure	– Information Technology functions follow a functional structure, with specialized teams for IT operations, software development, and cybersecurity. Each team manages IT systems, software applications, and digital initiatives across the organization.	– Efficient management of IT resources and cybersecurity. Specialized expertise in IT operations and software development.	Potential challenges in cross-functional collaboration between IT and business units. May not align with specific business divisions.
Human Resources	Functional Structure	– The Human Resources function operates with a functional structure, focusing on HR-related functions such as talent acquisition, talent development, and employee relations. Teams handle HR matters across the organization.	– Efficient management of human resources and talent-related activities. Specialized expertise in HR functions.	Potential challenges in cross-functional collaboration with business units. May not align with specific business divisions.
Legal and Compliance	Functional Structure	– The Legal and Compliance functions follow a functional structure, with specialized teams for legal matters, regulatory compliance, and risk management. Each team manages legal and compliance issues across the organization.	– Specialized focus on legal and compliance matters. Efficient handling of legal and regulatory issues.	Potential challenges in coordinating legal and compliance efforts across different business units. May not align with specific business divisions.

Table of Contents

Introduction

General Motors is an American multinational vehicle manufacturer headquartered in Detroit, Michigan, and founded by William C. Durant, Charles Stewart Mott, and Frederic L. Smith in 1908.

General Motors was the largest such manufacturer in the world for 77 years between 1931 and 2008, so it is perhaps no surprise to learn that the company employs an organizational structure underpinned by multiple regional divisions.

Below we will explain this divisional structure and some other aspects of the GM organizational structure in more detail.

Regional divisions

As a global company, General Motors utilizes regional divisions to help it account for differences between one geographic market and the next.

There are five such divisions:

GMNA – General Motors North America.
GME – General Motors Europe.
GMSA – General Motors South America.
GM AMEO – General Motors Africa & Middle East.
GMAP – General Motors Asia-Pacific.

Each division has a regional headquarters which liaises with company headquarters in the United States. One characteristic of this divisional structure is interdepartmental competition, with several GM brands competing against each other in the same market.

After the Global Financial Crisis, however, the company was forced to accept a government bailout and institute a massive restructuring program. Many unprofitable brands were retired and each division was afforded more autonomy to market to particular consumer preferences. Each division now also oversees support functions such as finance, information systems, purchasing, logistics, corporate communications, and human resources,

Business-type divisions

General Motors is also structured around two business-type divisions:

GM Automotive – which houses the five regional divisions noted above, and
GM Financial – this incorporates a broad range of financial services including fleet leasing, consumer vehicle finance, dealer financing, commercial and vehicle insurance, and car and truck extended service contracts.

Corporate, function-based groups.

The company is also underpinned by multiple corporate, function-based groups that are headed by a Corporate Officer.

These groups include:

Global Communications.
Tax.
Global Human Resources.
Global Business Solutions.
Global Manufacturing and Sustainability.
Global Information Technology.
Global Product Development, Purchasing, and Supply Chain.
Strategy and Innovation.
Accounting Services.
GM China.
North America.
Global Public Policy.

General Motors also has a 13-member Board of Directors headed by current Chair and CEO Mary T. Barra.

Comparison with Ford

Similarities: Both GM and Ford use a matrix structure that combines functional and divisional elements, allowing flexibility and responsiveness within global operations. Both companies emphasize strong brand management within their divisional setups.
Differences: Ford tends to centralize decision-making more than GM, focusing on global product lines and efficiencies, which can sometimes slow responsiveness to local market nuances. GM, conversely, allows more autonomy to its regional and divisional leaders, potentially enhancing adaptability.
Implications: GM’s approach might provide better localized customer service and quicker adaptation to market changes, while Ford’s centralized model might achieve higher efficiencies and more cohesive brand strategies across markets.

Comparison with Toyota

Similarities: Toyota and GM both integrate functional and divisional aspects in their structures, with a strong focus on engineering and manufacturing excellence.
Differences: Toyota employs a more pronounced lean manufacturing and continuous improvement philosophy (Kaizen) throughout its structure, which permeates all levels of the organization. GM has been traditionally more hierarchical, although it has been moving towards greater flexibility.
Implications: Toyota’s approach fosters a culture of incremental innovation and efficiency that is deeply embedded in its operations, potentially leading to higher operational efficiencies than GM. GM’s less rigid structure might allow for faster strategic shifts and potentially quicker innovations in new technologies like electric vehicles.

Comparison with Volkswagen

Similarities: Like GM, Volkswagen operates a complex matrix with a significant number of brands under its umbrella, requiring a balance between brand autonomy and strategic cohesion.
Differences: Volkswagen’s structure is even more complex due to its broader brand portfolio, which includes a range of luxury, commercial, and passenger vehicles. This complexity can sometimes result in inefficiencies and a diluted focus compared to GM’s more streamlined brand portfolio.
Implications: GM’s somewhat simpler structure could lead to clearer brand identities and more focused market strategies. However, Volkswagen’s diverse brand range allows it to cover multiple market segments simultaneously, potentially reaching a broader customer base.

Key Highlights:

Regional Divisions: General Motors employs a divisional organizational structure with multiple regional divisions to account for variations in different markets. The divisions include GMNA (North America), GME (Europe), GMSA (South America), GM AMEO (Africa & Middle East), and GMAP (Asia-Pacific).
Autonomy and Competition: After the Global Financial Crisis, GM restructured its divisions to provide more autonomy in marketing and cater to specific consumer preferences. Interdepartmental competition emerged as various GM brands competed against each other in the same markets.
Support Functions: Each regional division oversees support functions like finance, information systems, purchasing, logistics, corporate communications, and human resources. This ensures efficient and coordinated operations across the company.
Business-Type Divisions: GM has two primary business-type divisions: GM Automotive, which encompasses the regional divisions, and GM Financial, responsible for various financial services including vehicle leasing, financing, and insurance.
Corporate, Function-Based Groups: GM is supported by several corporate, function-based groups led by Corporate Officers. These groups cover diverse areas such as global communications, human resources, manufacturing, information technology, product development, purchasing, and more.
Board of Directors: General Motors’ organizational oversight includes a 13-member Board of Directors, with the CEO (currently Mary T. Barra) serving as the Chair.
Adaptation to Change: GM’s divisional structure allows it to adapt to market changes by tailoring strategies to regional preferences and demands, fostering competitiveness among its brands.
Complex Operations: With its global presence and diverse business units, GM’s organizational structure enables effective coordination and management of operations across various regions and functions.