General Motors Company Swot Analysis

1386 WordsMay 2, 20176 Pages
General Motors Company designs, manufactures, and sells cars, trucks, and automotive parts. GM is headquartered in Detroit, Michigan and employs approximately 215,000 people globally (General Motors Company SWOT Analysis, 2016, p. 3). The organization is a multinational company with operations in North and South America, Europe, and Asia, primarily in China. GM’s North American product lines are Buick, Cadillac, Chevrolet, and GMC. Vehicles manufactured and sold in South America and Europe include those sold in America as well as Holden, Opel, and Vauxhall. Vehicles produced and sold in the Chinese market include the Baojun, Jiefang, Wuling, Buick, Chevrolet, and Cadillac (General Motors Co., paras 1-2). Their 2016 annual revenue was…show more content…
Two months before notifying safety investigators of the problem, General Motors ordered a half million replacement switches. GM took heavy criticism for failure to fix the switches. When Mary Barra testified at congressional hearings, she admitted mistakes were made that led to compromising safety and vowed to correct the mistakes (Keen, 2017, p. 2). Vehicles involved in the recall included the 2003-2011 models of Chevrolet Cobalt, Pontiac G5, and the Saturn Sky and Ion. The crisis caused the company to set aside at least $4 billion in victim compensation and other expenses. $900 million went to the Department of Justice and $595 million went to an established fund for crash victims and their families. The firm will have to pay more than $1 million fine to settle the U.S. Securities and Exchange Commission investigation linked to the massive recall. Deficient internal accounting controls did not allow GM to fully assess the financial impact of the defective switches. (Keen, 2017, p. 2). GM seemed to have a lack of responsibility and accountability for not recalling defective vehicles with faulty ignition switches. The company has a history of internal dysfunction, and has not ceased with this crisis, including situations of employees shifting responsibility for problems to others and putting the blame on someone else. Employees had also been given formal training about how to avoid accountability for any

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