General Motors (GM) was established in 1908 and is headquartered in Detroit, Michigan. It operated in 33 countries with over 327,000 employees. GM dominated the global auto market for 75 years but faced financial troubles in the late 2000s due to large losses, high costs, and declining market share. In June 2009, GM filed for Chapter 11 bankruptcy, the largest industrial bankruptcy in U.S. history. The U.S. government provided funding during the restructuring to emerge as a new company focused on fewer brands and more fuel-efficient vehicles.

1. Presented by-: ManendraShukla Why GM ???????????

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

5. United Auto Workers VEBA 17.5 %

6. Canadian & Ontarian Governments 11.7 %

7. Bondholders of Former GM 9.8 % (now called as Motors Liquidation Company)

10. “Corporate Hispanic Advocate of the Year” Award in 2006.

11. “ 2005 Corporate Champion of the Year” Award..

12. Won “Green Award” for launching Solar Car.

13. “Diversity Awards” Given to GM

14. “Excellence in Marketing” – Special award (2005) AWARDS & ACHIEVEMENTS

15. Journey of General Motors to Government Motors

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.

24. Manufactured cars and trucks in 34 countries.

25. Employed 2,44,500 people around the world.

27. Manufacturing of small cars for Brazil as well as other countries including Argentina and Paraguay.

28. Expand the product development center.

30. Expanding its product base to mid-size trucks.

31. Investing in Emerging Markets.

32. Providing right product to the right person.

33. Huge investment in promotional activities.

34. Continuing to expand global client base.

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.

39. First Auto company to change its car features & styling almost annually.

41. Environment.

42. Community Involvement.

43. Partnership with Ethanol companies to reduce dependency on petroleum or any other fuels.

46. 30,000 employees were laid off.

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.

50. NGMCO Inc. purchased the ongoing operations from GM.

51. Announced new Board of Directors

54. Selling control of GMAC.

55. Timid & Poor management.

57. Ignoring Jerry York.

58. Mishandling Fiat .

60. Carrying of non-profit contributors.

62. GM will layoff thousands of employee to reduce cost.

63. Slashing the number of dealership.

64. Competition will be stronger for GM due to downsizing .

66. There will be adverse impact on US steelmaker.

67. The GM fiasco will boost up the confidence of Asian Auto maker to increase their market share.

68. GM customers may suffer severe cutbacks in service and availability of parts

71. Comparison of Industry v/s GM sales

72. Comparison of the new and the old General Motors

74. Make more fuel efficient cars that burns less gasoline.

75. Trim models from 48 to 36.

77. Ditch half of its brands.

79. Development of Hybrid or Eco-friendly car.

80. Reduce compensation and headcount.

81. Reduce the no. of Retail Channel and Dealer network.

82. Sale some of businesses

83. Give more responsibility to Managers.

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.

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)

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.

98. The only constant in this world is change, so we need to be flexible

99. A company should focus on its core activities

101. References: www.gm.com Wikipedia.com Business Today . Economic Times Business Standard. www.googlefinance.com

102. Thank You