General Motors
General Motors (GM) automobile manufacturing company was founded in 1908 by William C. Durant, and rose to become the world's leading auto manufacturers from the 1920s to 2008, with plants in the United States, Canada and Europe. In 2006, over 9 million GM cars and trucks were sold. Since then a series of massive losses have brought GM into bankruptcy. Where once it had a 50% share of the market for new vehicles in the United States, the company hopes at best to at least hang on to its current 18% share in the face of fierce competition from Asian makers, and a recession that has forced millions of people to postpone major purchases. GM in July 2009 emerged from bankruptcy after 40 days having shed many debts, dealer, employees, and plants, kept alive with government loans and the hope that it will have electric cars on the road and find its niche market. It is currently owned and operated by the U.S. government.
Some of the popular brands of autos designed, produced and marketed by GM include:
Brands that are slated to be sold or closed:
GM headquarters is located in Detroit, and the company manufactures cars and trucks in 33 countries, employing about 284,000 people globally in 2006, but far fewer in 2009.
History
General Motors was originally formed by joining several independent companies: the Olds Motor Vehicle Company, owned by Ransom E. Olds, (maker of the Oldsmobile); Cadillac Automobile Company owned by Henry M. Leland; Buick Motor Company, founded by David Dunbar Buick, and the Oakland Motor Car Co, the original maker of the Pontiac.
Crisis of 2008-9
GM went into crisis mode in 2008 as sales fell in half, with dealers' lots jammed with unsold cars. Losses mounted and only emergency loans from the federal government, approved by President George W. Bush, staved off bankruptcy for a few months. In late April 2009 GM announced further downsizing that will reduce its American workforce to 38,000 union employees in 34 plants, compared with 395,000 at 150 plants at its peak in 1970. Nearly half the dealerships will close, striking hard at the economy of many small cities. To restructure itself GM will need to borrow another $11.6 billion from the government. [1] Even that was not enough. The Obama Administration took full control, forced GM in and out of bankruptcy in 40 days, loaned it billions more, and remains in charge of the company. The plan is to re-privatize GM as soon as the economy recovers.
See Also
References
- ↑ Bill Vlasic And Nick Bunkley, "G.M.’S Latest Plan Envisions a Much Smaller Automaker," New York Times April 27, 2009
