General Motors

Topics: General Motors, Vauxhall Motors, Chevrolet Pages: 7 (1227 words) Published: April 9, 2015


General Motors
General Motors is a well known American company that is responsible for the fabrication and production of vehicles under others subsidiaries or brands such as Buick, Chevrolet, Cadillac, GMC, Oldsmobile, and Pontiac. Besides of the American brands there are other brands working through joint ventures like Opel, Wuling, Vauxhall, Holden, and Faw Jiefang. It seems to be an interesting strategy of market power the diversity of vehicles and models oriented to satisfy the necessity of the consumers adding high quality and performance to the automobile’s technology. As part of the General Motor history it is necessary to mention some chronological data for this company. General Motors was founded in 1908 in Flint, Michigan by William Durant with he investment on the Buick company only. In Germany the Opel company was targeting and getting strength with sewing machines; years later this company was introduced to the automobile market to posteriori being part of the GM family (GM, 2014).

During the period called the acceleration (1910-1929) the invention of the electric bulb, telephone, and radio established the launching of many manufacturing companies worldwide. GM was not exempt of that and as consequence the demand of more vehicles help to the increase of the productions as per the sales. On this period Chevrolet, Vauxhall, and Opel were incorporated under the strategy of “a car for every purse and purpose”. In1927 Cadillac LaSalle with a modern prototype was added to this family. The Emotion period (1930-1959) was marked by stability of the business but during the World War II GM shifted their production to support the demand of the Allied war effort. The introduction of an innovated front wheel suspension and new line of vehicles like Buick Roadmaster, Chevy Corvette and Bell Air, and Cadillac El Dorado were part of this period. The Revolutions (1960-1979) was the period on which the environmental changes generated concerns with the competitors and again GM took the lead on this process with the implementation of the catalytic converter, engines powered with unleaded gasoline, and air bags on the new production. The necessity to improve the market generated the invention of small cars fuel-efficient to be according to the competitors.

1980-1999 this period was denominated “Globalization” many companies developed the internationalization of their activities. For GM this activity was the support of the business since the beginning of their operations although during this period GM opened a new facility in Zaragoza Spain and in 1995 they entered on their first joint venture in China. Posterior to this space they established joint ventures with Toyota and Saturn. However, the investments and the added legacy cost of operations generated disadvantages with the competitors of Japan, Germany, and Korea. Innovation and Challenges (2000-2008) this period was important for the transformation of the Corporation due to the strong presence of GM on important markets like China and Brazil. The introduction of electrical vehicles and the developing of hydrogen powered fuel-cells were characteristic during this new millennium. In 2008 the instability of the financial market with recession in credits created a crisis on sales impacting the stability of GM that was operation without provisions on cash (GM, 2014).

2009-Present: “The Rebirth”, this last stage is the most important for GM due to the end of the old GM and the birth of the new organization. On June First 2009 GM filed for bankruptcy and on July 10th, 2010 the new General Motors Company was born with founds granted by the U.S. Treasury, Canadian Government, and the union UAW Retiree Medical Benefit Trust as their most heavy and important shareholders (GM, 2014). Actually there are four important brands on GM-US: Chevrolet, Buick, Cadillac, and GMC with 4,500 dealers and good agreements with its unions. Seventy...


References: Bigman, D. (2013). How General Motors Was Really Saved: The untold true story of the most important bankruptcy in the U.S. history. Forbes. Retrieved from:
http://www.forbes.com/sites/danbigman/2013/10/30
General Motors (2014). About GM. History of GM. Retrieved from:
http://www.gm.com/company/aboutGM.html
Welch, D. (2009). GM Files for Bankruptcy. Bloomberg Business week. Retrieved from:
http://www.businessweek.com/stories/2009-06-01
Welch, I. (2009). Corporate finance: An introduction. Upper Saddle River, NJ: Prentice Hall.
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