General Motors (MM) is one of the biggest automotive manufacturers in the world, and the largest in the U.
S. It’s headquarter is located in Detroit, MI. GM has total of 396 facilities in 6 continents and supplies more than 21000 dealers all around the world (almost 14th of it is in the U. S. ). Its current CEO is Dan Assessor, and it has more than 212,000 employees worldwide. Its board of directors consists of 15 board members .
Company History General Motors was founded by William Duran on September 16, 1908 in Flint, MI as a holding company for Buick (which was established in 1899).Between 1908 and 931, General Motors bought Oldsmobile, Chevrolet, Vaughan, Holder, and People and created the Pontiac and Cadillac brands. All these new brands and models diversified its selections. In 1925, GM also moved its headquarters from Flint to Detroit, MI. By late sass’s, GM became the biggest car company in the U. S. In sass’s, GM first purchased the Yellow Coach Bus company started to manufacture buses.
Second, by stock exchange it took control of North American Aviation (ANA), which GM divested ANA by 1948. In 1937, GM recognized United Auto Workers (I-JAW) labor union as the only bargaining power for its workers.During WI, GM manufactured tanks, aircrafts and trucks to the U. S. Government. In 1955, GM became the first GM offered many different car and truck models.
In addition to this, it created or adopted many new technologies into its production cars, such as airbag or the catalytic converter. By early sass’s, German and Japan car manufacturers began to enter the U. S. Market with more fuel efficient smaller cars.
GM tried to adapt to this new change, but still lost some of its market share. In sass’s, GM also began to establish new factories outside of the U. S. , created Saturn brand and added SAAB and Hummer to its family.In 1995, GM sales in the U. S. Markets reached to 5 million units and 3 million units in rest of the world. GM sales continue to increase remaining of the ass, but also its debt began to increase.
The stock market crash in 2001 also affected the overall company structure. After this recession, GM began to work on electric and hybrid cars. Shortly after this decision, the 2008 crisis dramatically affected the automobile industry. The U. S. Government provided a loan to MM, but still GM filed for bankruptcy by June 1 2009. As a result of this, GM end up selling or dissolving majority of the vehicle brands and formed a new GeneralMotors.
Today GM is a smaller company than before, and it has begun to pay its debt . Company structure & Management General Motors is a multinational and multidimensional corporation. Like any corporation that is open to the public, the board of directors is the highest body. Shareholders select the board of directors and the board of directors selects the CEO. Gem’s board consists of 15 members including the CEO. The board of directors oversea the key activities, but CEO and subordinate executives of CEO run the organization based on board decisions.GM has total of 14 vice presidents, and each en of them is in charge of one of the four segment (GM North America, GM Europe, GM South America and GM International Operations), one of the four major brands (Cadillac, People, GYM or Chevrolet) or activity (such as finance). Products & services General Motor designs, builds, and sells automotive and automotive parts and also provides automotive financing services through General Motors Financing globally (financing services are not offered in every country that GM cars are sold).
GM owns multiple different car brands and some of them offered in certain offered only in certain markets.These brands are Chevrolet, Buick, People, GYM, Cadillac, Beacon, Issue, Holder, Gaffing, Washable and Wiling . GM dealers both sell cars and also offer service. Most recent company explosions & investments One recent investment decision GM made is investing $600 million to its Fairfax plant in Kansas City.
GM uses this facility to build Buick Lacrosse and Chevrolet Malibu. Gem’s factory expansion will build a new paint facility and vehicle body frame reinforcement facility by 2014. This is the largest investment GM made too single facility in last 3 years in North America and it is planning to invest total of $1. Lions to its North American facilities in next few years. The new expansion is expected to cut operating costs and provide state tax benefits for next 10 years for GM.
The majority of the portion of the investment costs will be finance by the Unified Government of the Wyandotte County & Kansas City bonds. The Unified Government will issue the bonds and it will own the plant until GM pays the bonds. GM will pay of these bonds with paying rent and if GM stops leasing the building, GM will be responsible for paying remainder of the bonds . Two Ohio plants.
These two facilities manufacture Chevrolet Crude and this new investment will upgrade the facilities and they will be used for to manufacture next generation of the Chevrolet model . This investment will preserve total of 5,000 Jobs between 2 plants. In return for Job security, the United Auto Workers agreed to lower wage increases.
With this saving, GM is able to invest to its Ohio plants . General motors challenges & Opportunities General Motors filed bankruptcy in June 1st 2009, sold, or dissolved some of its old brands and formed a smaller new GM. This was all part of an agreement with the U.
S. Treasury for bailout.By doing this, GM was able to borrow total of $49. 50 billion from the U. S. Treasury in return for GM stocks.
Two of the biggest challenges for the company are to pay this debt back and overcome the image of “Government Motors” . Company actually was able to pay majority of its debt to the U. S. Treasury and once the U. S. Treasury will sell the remaining 300 million GM shares to the public later this year or next year, stock prices for the GM is expected to increase.
This will take pressure of the company and increase its image as well . Another challenge company facing is losses in the European market.Its People brand is not doing since 2008 crisis, and the bad European economy is affecting the verbal car sales throughout Europe.
People began to cut its costs in 2012 and early 2013, but still it is not breaking even. The company formed alliance with French car manufacturer AS and it is expected to break-even by the mid-decade, which is considered very positive news for GM . Lastly, when company came out of bankruptcy in 2009, it had some major structural and managerial issues.
For example, GM had no operational risk management in 2009, but now the company has it and real benefits of this will started to be observed in coming years.GM also created one of the most efficient financial systems. Overall in nest few years, GM is expected to fully recover from 2009 bankruptcy and have a chance to get investing-grade company rating . All- industry conditions & competitors automotive industry & competitors Automotive industry sales worldwide were more than $250 billion globally.
The automotive industry is one of the most competitive and technologically challenging industries. Consumers demand constant change and innovation. In 2012, more than 84 million vehicles were sold all around the world.
Currently biggest automotive manufacturing country is China (Unites States is second).In addition to this, China is he biggest market by the number of automotive sales (more