General Motors MBA Interview Questions

General Motors MBA Interview Questions
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1. How would you price a new GM product?

Answer: Apply a layered approach—cost-plus (production costs + margin), competitive benchmarking, and value-based pricing based on consumer willingness to pay. Incorporate input from engineering, marketing, and dealers .

2. What factors influence the decision to open a new manufacturing plant?

Answer: Analyze market demand, labor availability, cost structure, logistics, supply chain resilience, regulatory environment, and risk-adjusted ROI .

3. What are the pros and cons of opening a facility in Mexico?

Answer:

  • Pros: Lower labor costs, proximity to U.S. market, trade benefits
  • Cons: Geopolitical risk, logistics, and regulatory challenges
    Overall, quantify cost savings vs. complexity

4. What would you do if your project was flawed mid-way?

Answer: Identify issues through data/input, pause execution, realign stakeholders, and re-prioritize remaining scope. Redirect effort to deliver value under new parameters .

5. How would you handle competing priorities?

Answer: Use an impact vs. effort matrix to evaluate tasks. Delegate operational items, focus personally on strategic high-impact work .

6. Would you pursue a project with negative NPV?

Answer: Only if it delivers non-financial strategic value (e.g., regulatory compliance, brand positioning). Otherwise, decline or redesign.

7. What are current automotive finance trends?

Answer: Growth in digital financing, predictive credit scoring (AI/ML), subscription models, and embedded financing via e-commerce .

8. How would you build a predictive model for loan defaults?

Answer: Data collection → feature engineering (e.g., income, credit history) → ML model development → cross-validation → integration into decision tools .

9. Describe resolving a difficult customer/employee situation.

Answer: Use STAR: identify issue, listen actively, develop resolution plan, implement solution, and follow-up.

10. Tell me about a time you learned a new technology quickly.

Answer: Example: Self-trained on Power BI via online courses; led team training and deployed dashboards for insights improvement .

11. Provide an example of your analysis influencing a business decision.

Answer: Analyzed customer feedback on delivery times; recommended logistics changes, improving satisfaction by 20% .

12. Where do you see yourself in five years?

Answer: In a strategic leadership role, leveraging finance/analytics to drive innovation in the automotive industry.

13. Tell us about recent GM news.

Answer: (Example) Discuss GM’s EV rollouts, strategic partnerships in AV space, or plant modernization.

14. What’s the difference between capital lease and asset purchase?

Answer:

  • Capital lease: Off-balance-sheet financing with lease liability
  • Asset purchase: Capital expenditure; ownership and depreciation
    Explain impact on cash flow, taxes, and GAAP balance sheet

15. Explain goal-seek for lease modeling.

Answer: Use goal-seek to resolve payment required to reach a target NPV, sale price, or IRR.

16. What is Net Working Capital (NWC)?

Answer: NWC = Current Assets – Current Liabilities. It signifies liquidity and operational efficiency .

17. How do you calculate Free Cash Flow?

Answer: Net Income + Depreciation/Amortization – Change in NWC – Capital Expenditure.

18. Cash flow vs. margin—what matters more?

Answer: Both are vital: margins reflect operational profitability, cash flow sustains capital investments and flexibility.

19. Can you walk through a DCF analysis?

Answer: Forecast free cash flow → discount using WACC → compute terminal value → sum → sensitivity analysis .

20. How do you assess capital lease decisions?

Answer: Compare tax implications, off-balance financing, OCF benefits, and long-term cost vs. flexibility.

21. What metrics track manufacturing plant performance?

Answer: OEE, unit cost, cycle time, defect rates, throughput, budget adherence.

22. How do you evaluate customer health using data?

Answer: Metrics like NPS, repeat purchases, service return rates, and digital engagement stats .

23. Tell me about a time you delivered under tight timelines.

Answer: Use STAR: define deadline, align priorities, streamline work, monitor progress, deliver on time.

24. Describe a time you managed ambiguity.

Answer: Define initial hypotheses, gather interim data, iterate strategy, pivot quickly, and communicate transparently.

25. Why GM?

Answer: Align personally with GM’s innovation in EV and AV, its integrated operations, culture of continuous improvement, and global scale.

Prep Tips for MBA Candidates

  • Many GM interviews blend STAR behavioral, finance modeling, and strategy case elements.
  • Practice DCF and lease modeling, and be fluent with NWC, FCF formulas.
  • Prepare diverse STAR stories (leadership, influence, conflict resolution, results).
  • Customize your responses to GM’s core values: innovation, sustainability, and teamwork.
  • Be ready with industry knowledge—e.g., EV shifts, supply chain dynamics, embedded financing.

Note: The questions and answers provided above are derived from publicly available online sources and are intended for educational purposes. Actual interview questions may vary based on the role, location, interviewer, and business context. Candidates are advised to prepare broadly and consult official company resources wherever possible.

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