Gm Bailout

4912 WordsJun 14, 201020 Pages
GENERAL MOTORS BAILOUT PROBLEM Introduction Founded in 1908, General Motors has been one of the largest corporation and the second largest automaker in the world coming after Toyota. For 77 consecutive years from 1931 to 1908, GM has been a leading automaker and marketer as ranked by the total number of units sold yearly. General motors have also been a leading employer not only in the United States but also in other parts of the world where it operates. However, the company has been seriously affected by the current economic crisis. The Detroit Three, led by General Motors have been a backbone of the United States economy and there eminent collapse in the current economy crisis is likely to have negative impacts on the United State’s…show more content…
Although it has reduced the number of acquisitions, GM has collaborated with other automakers in the world. It is a major shareholder in GM Daewoo Auto company operation in South Korea. It has collaborated with Suzuki Motor Corp and Isuzu Motors Limited of Japan in production of vehicle parts, power train and others. The company also collaborates with Toyota Corporation and BMW of Germany in areas of advanced auto technology. GM collaborations also include other leading automakers like Shanghai Automotive Industry Corporation, Renault of France, Fiat S. p. A., Ford Motor Company, and others. It has various stakes in different companies in the world which reassert its global influence in the automotive industry. Apart from directly employment, the company has created a global empire of the supply chain selling its vehicles or its spare pars. The company accessories are sold branded GM Goodwranth and ACDelco which are retailed thorough GM Services which distributes the spare parts to various distributors around the world. In terms of market size, the largest market is in the United States which has remained one of the leading automotive markets in the world. However, GM also sells a good number of its vehicles in China, Canada, United Kingdom, and Germany. In the early years of development of the automotive industry, most auto manufacturers came up with Financial Services which
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