GENERAL MOTORS AN OVERVIEW<br />Year of Establishment 1908<br /> Year of Christening as GM Corporation 1916<br /> Name of the Founder William<br /> Durant<br />Company Headquarter Detroit, Michigan, United States<br />Operation In 33 countries<br />No. of Employees 3,27,000<br />
Key People of GM<br /> CEO : Fritz Henderson. <br />Chairman : Ed Whitacre<br />Vice Chairman : Robert A. Lutz.<br />CFO & Executive VC : Ray G. Young<br />
Present Owners<br /><ul><li> United States Treasury 61 %
Journey begins :<br />1900 :- Motor Companies were in dire <br /> straits during this period.<br />1907 :- Stock Market panic in this year put a lot of companies in financial distress.<br />1908 :- The various companies folded into a single unit, creating GENERAL MOTORS.<br />
1908:- Founded on September 16, in Flint, Michigan as holding company for Buick, controlled by WILLIAM C. DURANT. Acquired Oldsmobile later that year.<br />1909:- Acquired many companies & folded into a single unit , called General Motors Corporation.<br />1910 :- William Durant was removed from the company & bankers prevented financial collapse.<br />
1911 :- Company advanced to International Market.<br />General Motors Export Company was formed to handle sales outside U.S. & Canada.<br />1915 :- Durant formed Chevrolet, to come back into GM.<br />1915-1920 :- The period was full of success . Cadillac became wildly successful. Durant reorganized General Motors Company into General Motors Corporation.<br />
1918 :- GM bought the operating assets of Chevrolet Motors.<br />1920:- Durant again found himself out of the company, after the new vehicle market collapsed.<br />
Journey to Zenith :<br />1920 :- Thereafter Alfred Sloan took charge of the corporation, thus, giving a fresh lease of life into GM and led to its post war global dominance.<br />During the financial boom in the 1920's, the history of GM virtually glowed with success. Auto sales reached the 4.5 million mark, and the auto industry now had three giants - GM, Ford and Chrysler.<br />
1929 :- The Great Wall Street crash put an abrupt stop to all expansion plans at GM. Stock Price fell badly. <br />1930 :- GM bounced back and bought the Yellow Coach bus company.<br />1930 :- It also bought Electro- Motive Corporation, the internal combustion engine railcar builder.<br />1955 :- 31st December, 1955, is another landmark in the history of GM. The first company to make more than a billion dollars in a year.<br />1929 :- The Great Wall Street crash put an abrupt stop to all expansion plans at GM. Stock Price fell badly. <br />1930 :- GM bounced back and bought the Yellow Coach bus company.<br />1930 :- It also bought Electro- Motive Corporation, the internal combustion engine railcar builder.<br />1955 :- 31st December, 1955, is another landmark in the history of GM. The first company to make more than a billion dollars in a year.<br />
1931-2005 :- <br /><ul><li>Led in Global Sales for 75 consecutive years.
Sold & served vehicles in some 140 countries.</li></li></ul><li>STRATEGIES THAT LED TO GROWTH<br /><ul><li>Positioning itself in emerging markets so that the company will grow simultaneously with these economies.
Manufacturing of small cars for Brazil as well as other countries including Argentina and Paraguay.
12 plants were closed down.</li></ul>2008 :- In late 2008, GM received loans from the America, Canadian, and Ontarian governments to bridge the late-2000s recession, record oil prices, and a severe global automotive sales decline due to the global financial crisis of 2008–2009.<br />
2009 :- On April 27th GM announced to phase out the Pontiac brand by the end of 2010. Rather it focused on only four major brands- Chevrolet, Cadillac, Buick, and GMC.<br />2009 :- On 1st June, 2009, General Motors’ applied on for Chapter 11 protection from its creditors, triggering the biggest industrial bankruptcy in history, was nonetheless a momentous event. <br />
<ul><li>Announced plans to reduce U.S. Workforce by 20,000 employees.
NGMCO Inc. purchased the ongoing operations from GM.
Fritz Henderson, new CEO.</li></li></ul><li>Reasons for downfall<br /><ul><li> Not filing for Bankruptcy sooner.
Huge legacy expenses such as high cost of pensions and </li></ul>health care .<br /><ul><li> Over reliance on gas guzzlers , Mediocre product quality </li></ul>& Unimpressive design . <br /><ul><li> Revolution of Shareholders/ Institutional Investors for </li></ul>high payout.<br /><ul><li>Driving incentives into the ground .
GM’s top selling Chevorlet division to launch SUVs this year ,where the rivals launch it 4 yrs back.</li></li></ul><li>Impact of GM’s Bankruptcy<br /><ul><li>GM Bankruptcy send the rallying market into reverse.
GM will layoff thousands of employee to reduce cost.
Competition will be stronger for GM due to downsizing .
Many dealers lost their confidence and have taken non-GM franchises.</li></li></ul><li>Continue…..<br /><ul><li>GM’S bankruptcy could impact Indian service providers in a small but significant way, immediate impact being delayed payment and ramped down existing project.
There will be adverse impact on US steelmaker.
The GM fiasco will boost up the confidence of Asian Auto maker to increase their market share.
GM customers may suffer severe cutbacks in service and availability of parts
The used GM car market — already burned — will be toast.</li></li></ul><li>Principal Competitors of GM & market share in US.<br />Note : Above data related to passenger car & trucks.<br />
FUTURE PLANNING OF GM<br />Introducing CHEVY VOLT.<br />Planning to launch $4000 car.<br />Trimming the number of factories and shedding <br />out jobs as well.<br />Focusing only on a few brands.<br />Wiping out common shareholder.<br />US-owned GM plans to float IPO by July 2010<br />
“ The Road is tough, but the ultimate goal – a leaner , stronger , viable GM – is one we share.” <br /> -Fritz Henderson ( CEO )<br /> General Motors.<br />
Lessons learnt<br /><ul><li>Great works are performed not by strength but by perseverance
The only constant in this world is change, so we need to be flexible
A right decision at a wrong time ultimately becomes a wrong decision</li></li></ul><li>Good deeds always pays off.<br />When the cash cows turn into dogs , its better to sell the cow and earn money out of it.<br />We should be more realistic rather than being over ambitious.<br />Quality must never be compromised for the sake of crown<br />