Gm vs Ford

11134 Words May 10th, 2012 45 Pages
General Motors Co
Strategic and Financial Analysis

ADVANCED CORPORATE FINANCE April 22, 2012 Authored by: Ana Romero, Roshan Picardo, Carlos Castro, Shikhar Agarwal

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General Motors Co
Strategic and Financial Analysis
Executive Summary This report provides an evaluation of strategic and financial evolution of General Motors Company (GM) in the last ten years. Events like the global economic recession lead to a deep restructuring of the firm, filling for bankruptcy and a government bailout. The report provides an analysis of GM’s business model, products, the markets it is competing in, the global automotive and manufacturing industry and it also assess its attractiveness for incumbents and new entrants is also With a brief
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Historically, Ford has had higher turnover ratios, which partially helped it to have a better cash position than GM during the crisis. Lastly, the two companies implemented different ways to raise funds; Ford, levering its balance sheet to important levels and GM “selling” its debt (GMAC divestiture) and asking for government intervention. Two different approaches that at the end helped the firms continue being in the market. So far, with higher profits and ROA Ford’s seems to be winning the battle.

General Motors Co | 4/22/2012

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Company Overview General Motors (GM) is a leading corporation engaged in the development, production and marketing of cars, trucks and automobile parts. The company has also diversified interests in finance and insurance operations. The company primarily operates in North America, and Europe. The company recorded revenues of $150 billion during the financial year ended December 2011 (FY2011), an increase of 10% compared to revenues of FY2010. The net profit was $9.1 billion in FY2011, as compared to a net profit of $6.1 billion in FY2010. GM products and markets1 General Motors (GM) is engaged in the design, development, manufacturing, and marketing of automotive products worldwide. The company and its strategic partners manufacture vehicles in atleast 31 countries. In FY2010, GM produced 8,714,000 vehicles under the brands,

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