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DE RUEHQT #0439 1631347
ZNR UUUUU ZZH
R 121347Z JUN 09
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0457
INFO RUEHBO/AMEMBASSY BOGOTA 8184
RUEHCV/AMEMBASSY CARACAS 3583
RUEHLP/AMEMBASSY LA PAZ JUN LIMA 3241
RUEHGL/AMCONSUL GUAYAQUIL 4373
RUCPDOC/DEPT OF COMMERCE WASHDC

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