Essay on General Motors Company Analysis

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General Motors Company Sharron Rose Capella University February 17, 2012 Unit 6 Assignment 2: Company Analysis Abstract General Motors Company has played a pivotal role in the global auto industry for more than 100 years. However in 2008, it was almost brought to its knees by a major recession and global credit crisis that drove car sales to near depression levels and dried up private sources of capital. This paper attempts to review what happened to General Motors while analyzing the macroeconomics of its corporate operations. General Motors Company (GM) is an American multinational automobile…show more content…
USA, UK and Europe. However, the demand has been rising steadily in India and China – both the world’s fastest growing economies. Thanks to Shanghai GM, a successful joint venture with the Chinese company SAIC, GM’s sales in China increased by 68 percent to 230,048 vehicles in March 2010, outstripped its U.S. sales of 188,546 by 22 percent (Bloomberg Business Week, 2010). The economy will remain unpredictable given the slow economy recovery in many countries across Europe, which is likely to affect disposable income of many households. Widespread cuts in the government spending level, high taxes and inflation, rising oil prices, rising unemployment as well as the rising cost of living in the UK, will certainly affect consumer spending levels on luxury brands, such as Chevrolet and Cadillac. Yet, favorable conditions in foreign markets in India and China, with the demand for cars expected to grow well into 2015, will partly help offset GM’s weak performance in domestic markets in the US and Europe (BBC, 2010). Younger generations value personal mobility and their perception about brands such as Chevrolet and Cadillac, which both became anonymous with luxury, is still strong and popular to this day. Today’s generation is less risk-averse and money conscious and more eager to experiment across different brands. I suspect GM’s new hybrid SUVs will raise in
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