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History
Founded in 1908 by William Durant 1911- First auto company on NYSE 1927- took lead of industry from Ford
History
1970’s-80’s Japanese gain market share
GM tried to match smaller car styles
2000’s- Recalls and Strikes
History
2008: 5,000 salary layoffs 2009: Government Bailout
Ch. 11 Bankruptcy Motors Liquidation Company
2010: Rebirth, Restructure, Largest IPO
History
Present Day: Daniel Akerson trying to get GM back on top.
Greener Cars
Repay debt to the government
Industry Analysis
Barriers to Entry High
Intensity of Rivalry Extremely High
Bargaining Power of Suppliers Low
Bargaining Power of Buyers Low
Substitutes Low
Strengths
High Liquidity Allows them to be more flexible in the future
Strong Global Presence
New found focus on individual brands Increased product quality
Weaknesses
Customer Loyalty Stigma from the bailout “Holes in the line up”
Declining US Market Share
United Auto Workers
Geographic and Economic Factors
Headquarters in Detroit, Michigan
Became global in the 1920s
Now manufacture vehicles in 31 countries
Four Geographically-Based Segments
GM North America
GM Europe
GM South America
GM International Operations
Total Production Volume for Each Geographic Segment
GM (Year Ended Dec. 31, 2010) Combined GM and "Old" GM (Year Ended Dec. 31, 2009)
Old GM (Year Ended Dec. 31, 2008)
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Total Production Volume
GMNA
GME
GMIO
GMSA
Worldwide
Automobile Industry Factors and Business Cycle
Retail sales fluctuate according to season
Production varies each month
Changeovers occur often throughout the year New market entries, vehicle models
Business cycle depends on general economic conditions and consumer spending
The Economy
The recession had a negative effect on GM’s United States Market
It also affected factors that determine consumers’ buying decisions E.g. Price, quality, available options, style,
safety, reliability, fuel economy, and functionality
Financial Help From Congress
G.M. Files for Bankruptcy
Dramatic Turnaround
Profitability Helped by Tax Breaks Carried Over Through Bankruptcy
A Slow Recovery
G.M. Announces Still Losing Money in November 2009
2010 Turnaround -Rebuilding Operations-Increased Sales- full-year profit was equal to $2.89 a share
2011 Earnings: 1st Quarter
G.M. made $3.2 Billion in the 1st Quarter-5th Consecutive Profitable Quarter
Sales
Competitors and Their Reactions to Economic Conditions
In 2005 the auto industry rides a new trend of “Employee Prices for Everyone”.
2005 is a tough year for both companies. “Way Forward” GM looks for government help GM emerges from bankrupcy Ford rebuilds workforce
GM in the Future
Now-Akerson Keeping the Ship Upright
5 Years-New CEO-Hydrogen Cars-Emerging Markets
20+ Years-Hydrogen Gas Stations-Staying Within Their Limits
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