General Motors must improve supply chain to stay competitive

Much-maligned General Motors is making a bid to shake the "Government Motors" nickname it earned after the bailout by filing plans for an initial public offering with the Securities and Exchange Commission.

Despite a global network of more than 21,700 dealerships, the company has been struggling to compete with foreign brands that are often perceived to be more reliable, less expensive or more luxurious. As a result, GM has made a lot of changes in its efforts at rebranding and staying profitable. The company has dropped four of its brand offerings - Saab, Hummer, Saturn and Pontiac - and now only offers models under the brands Chevrolet, Buick, GMC and Cadillac. It is also betting high with its all-electric model, the Chevy Volt.

In 2009, the company sold 7.5 million new and used vehicles, accounting for approximately 11.6 percent of worldwide vehicle sales. GM is the world's second-largest automaker, and the company will need a more efficient supply chain if it wants to compete with foreign car producers. It must ensure that its size doesn't interfere with its ability to produce quality cars for reasonable prices at an efficient speed, or it will never be able to maintain its market share.

In July, General Motors announced that it would be selling its steering wheel manufacturing operation to a Chinese firm. The move, which some called the biggest move yet by a Chinese company into the American auto industry, is designed to help the company increase its efficiency.