EMBASSY QUITO ACE AWARD NOMINATION

UNCLAS QUITO 000439 SIPDIS E.O. 12958: N/A TAGS: ECON BEXP EINV ELAB ETRD KSEP SENV AMGT EC SUBJECT: EMBASSY QUITO ACE AWARD NOMINATION Reftel: State 34898 ¶1. Embassy Quito is pleased to nominate General Motors of Ecuador S.A. for the Secretary of State's Award for Corporate Excellence (ACE). General Motors of Ecuador has maintained a strong commercial performance in an exceptionally difficult global auto market. In terms of the Award for Corporate Excellence, it has launched a highly innovative and successful "designated driver" program in Ecuador called "Conductor Elegido." This program has raised awareness about a serious public safety problem and has helped burnish GM's reputation for good corporate citizenship within Ecuador. ¶2. Although the troubles of General Motors's U.S. operations are well-known, GM of Ecuador has been able to remain profitable in this difficult economic climate. Despite an Ecuadorian auto industry that has seen sales contract by 1.6% compared to last year, GM of Ecuador's 2009 sales to date are up 3.8% compared to 2008. The company's share of Ecuador's auto market in 2009 is 44.4%, which is 2.2% higher than 2008. GM's market share has risen two years in a row, and its Chevrolet brand has a commanding lead in market share in three important categories: passenger cars (51.1%),pickup trucks: (43.3%),and SUVs (40.2%). By comparison, the next-to-largest market shares of their competitors in these categories are 12.5%, 30.2%, and 22.5%, respectively. ¶3. Along with its solid business performance, GM has demonstrated leadership and innovation in the area of Corporate Social Responsibility with its Conductor Elegido program. The company has made a concerted effort to raise public awareness about the hazards associated with drinking and driving. This problem has received minimal publicity in Ecuador, despite over 1200 reported drunk-driving accidents per year. (Note: This likely far understates the actual extent of alcohol-related accidents in Ecuador.) The Conductor Elegido program was initiated in Quito in May 2008, and GM plans to roll out similar efforts in Cuenca and other Ecuadorian cities soon. People who enroll in the Conductor Elegido program are issued an identification card, which, as a designated-driver, allows them to receive benefits like free soft drinks or desserts in local restaurants and bars. GM has thus far been able to enroll 62 Quito businesses in the program, giving subscribers a wide range of establishments to choose from. The company reported that over 5400 people have signed up for the program so far, and says that on average 420 new people enroll every month. ¶4. GM has combined this subscriber program with a broad outreach effort. The company has created a popular animated TV advertisement in which a cartoon "grim reaper" character is foiled in his hunt for victims by people participating in the Conductor Elegido program. The company has also produced TV spots with Ecuadorian celebrities warning viewers about the dangers of drinking and driving and urging them to enroll in the program. GM estimates that over 1.2 million people have seen their advertisements. Finally, the company has enlisted the host of a popular Formula 1 car racing TV show to visit schools in order to raise public awareness about the risks of drinking and driving. GM reports that he has performed these events for over 4200 students. ¶5. Embassy Quito highly recommends General Motors of Ecuador for the ACE Award. The company's Ecuadorian operations are a rare bright spot in an overall bleak landscape for U.S. auto manufacturers. Its innovative CSR efforts demonstrate the best of U.S. corporate initiative and responsible citizenship. We believe GM is very worthy of the recognition an ACE award would bring. HODGES