2. GENERAL MOTORS AN OVERVIEW Year of Establishment 1908 Year of Christening as GM Corporation 1916 Name of the Founder William Durant Company Headquarter Detroit, Michigan, United States Operation In 33 countries No. of Employees 3,27,000
3. Key People of GM CEO : Fritz Henderson. Chairman : Ed Whitacre Vice Chairman : Robert A. Lutz. CFO & Executive VC : Ray G. Young
14. “Excellence in Marketing” – Special award (2005) AWARDS & ACHIEVEMENTS
15. Journey of General Motors to Government Motors
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17. Journey begins : 1900 :- Motor Companies were in dire straits during this period. 1907 :- Stock Market panic in this year put a lot of companies in financial distress. 1908 :- The various companies folded into a single unit, creating GENERAL MOTORS.
18. 1908:- Founded on September 16, in Flint, Michigan as holding company for Buick, controlled by WILLIAM C. DURANT. Acquired Oldsmobile later that year. 1909:- Acquired many companies & folded into a single unit , called General Motors Corporation. 1910 :- William Durant was removed from the company & bankers prevented financial collapse.
19. 1911 :- Company advanced to International Market. General Motors Export Company was formed to handle sales outside U.S. & Canada. 1915 :- Durant formed Chevrolet, to come back into GM. 1915-1920 :- The period was full of success . Cadillac became wildly successful. Durant reorganized General Motors Company into General Motors Corporation.
20. 1918 :- GM bought the operating assets of Chevrolet Motors. 1920:- Durant again found himself out of the company, after the new vehicle market collapsed.
21. Journey to Zenith : 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. 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.
22. 1929 :- The Great Wall Street crash put an abrupt stop to all expansion plans at GM. Stock Price fell badly. 1930 :- GM bounced back and bought the Yellow Coach bus company. 1930 :- It also bought Electro- Motive Corporation, the internal combustion engine railcar builder. 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. 1929 :- The Great Wall Street crash put an abrupt stop to all expansion plans at GM. Stock Price fell badly. 1930 :- GM bounced back and bought the Yellow Coach bus company. 1930 :- It also bought Electro- Motive Corporation, the internal combustion engine railcar builder. 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.
37. Segmenting the market on the basis of cars:-Chevrolet- Entry level car buyers. Opel & Vauxhall- Middle market consumers. Cadillac- Wealthy people. Hummer- Premium market consumers.
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39. First Auto company to change its car features & styling almost annually.
47. 12 plants were closed down.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.
48. 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. 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.
85. FINANCIAL HIGHLIGHTS (Figures in $ mn). 31st December 31st December 2008 2007 Total Current Assets 41,224 60,135 Total Insurance & Financing Operations Assets 4,507 16,989 Total Fixed Assets 39,656 43,017 Non – Current Assets 5,660 28,742 Total Assets91,047 1,48,883
86. Figures in $ mn. . 31st December 31st December 2008 2007 Total Current Liabilities 73,911 69,510 Total Financing & Insurance Operations Liabilities 1,822 5,813 Long – term Liabilities 29,594 33,384 Non Current Liabilities 71,060 75,656 Total Liabilities 1,76,387 1,84,363 Less :- Accumulated Deficit 85,340 35,480 Total Liabilities 91,047 1,48,883
87. Profit & Loss A/c 31st December 31st December 31st December 2008 2007 2006 Net Sales & Revenue 1,48,979 1,79,984 2,04,467 Costs & Expenses 1,70,263 1,84,293 2,10,290 Operating Loss ( 21,284 ) ( 4,309 ) ( 5,823 ) Net Loss ( 30,860 ) ( 38,732 ) ( 1,978 ) EPS ( 53.32 ) ( 68.45 ) ( 3.50 ) Figures in $ mn.
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89. Quarterly Result (Figures in $mn) As on As on As on 31st Mar,09 31st Dec,08 30th Sept,08 Total Revenue 22,431 30,778 1,18,201 Gross Profit (2,180) (2,516) 892 Total Operating Expenses 2,576 4,820 14,840 Operating Income (4,756) (7,336) (13,948) Non-Operating Expenses 1,305 1,455 6,649 EBIT (6,061) (8,791) (20,597) EAT (5,947) (9,528) (21,626)
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91. STRENGTH Company size & Market Share Technological Potential New Leadership Quality Improvement Acceptance of Improvised Model Structural Approach & Relationship
92. WEAKNESS Failure to implement technolog Bureaucratic Culture Product Design Problem Negative Effect of Downsizing High Cost of Production Relationship with UAW
93. Opportunity Expansion of their global presence Continue to build on the newfound customer confidence Changing consumer demand for new model types & styles
94. THREATS Domestic & Foreign Competition U.S. Federal Legislation & Regulation Consumer Lawsuits Foreign Legislation & Regulation
95. FUTURE PLANNING OF GM Introducing CHEVY VOLT. Planning to launch $4000 car. Trimming the number of factories and shedding out jobs as well. Focusing only on a few brands. Wiping out common shareholder. US-owned GM plans to float IPO by July 2010
96. “ The Road is tough, but the ultimate goal – a leaner , stronger , viable GM – is one we share.” -Fritz Henderson ( CEO ) General Motors.
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98. The only constant in this world is change, so we need to be flexible
