Jeff Porter
Elio Addict
- Joined
- May 20, 2014
- Messages
- 2,086
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Since 2000, customers in Brazil can order the Celta over the internet from a site that links them with GM's assembly plant and 470 dealers nationwide. By 2006, 700,000 Celtas had been produced and the car continues to be one of Brazil's best sellers. Consumers have 20 "build-combinations" from which to configure a model of their choice, including colors and accessories, and can view each change as it is being made. GM built five distribution centers throughout Brazil to reduce transportation time from its assembly plant and buyers can track location of their car online on its way to delivery at a dealer of their choice. The time from configuration at the factory to delivery is only about a week, in contrast to the several week wait that can be common in ordering a car in the United States. The Celta was designed by GM in collaboration with suppliers who deliver just-in-time pre-assembled modules to the factory. GM estimates that collaboration in design and manufacturing enabled it to use 60 percent fewer suppliers and 50 percent fewer parts than in a traditional assembly operation. According to Mark Hogan, president of e-GM at the time of the Celta's introduction, GM can sell Celtas 24 hours a day and enjoys a competitive advantage from reduced production time, lower inventory levels and an overall more efficient distribution and sales model where dealers need to stock only two models, one for the show room and one for test drives. Consumers benefit from Celta's online no-haggle pricing structure, where prices are about 6 percent lower than for sales made through conventional distribution channels. The price is lower because GM passes on to consumers some of the tax benefits it gets from the Brazilian government as a result of the reduced inventory and real estate associated with online sales. Source: Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers
http://www.justice.gov/atr/public/eag/246374.htm
Woooooow. *eyebrows going up and down here*