De Montfort University |
General Motors Report |
Joel Adu |
Word Count: 4303 |
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] |
Executive Summary – Page 3
Introduction – Page 4 – 5
Critical Literature Review – Page 6 – 7
Methodology – Page 8 – 9
Data Analysis – Page 10 – 11
Conclusion – Page 11
Bibliography – Page 12
Appendices – Page 13 - 13
The aim of this report is to discover whether General Motors have improved since their bankruptcy ...view middle of the document...
And also a fifth segment which is GM Financial. GM have many different brands under their label, some more popular in parts of the world than others. Those different automobile brands are; Alpheon, Baojun, Buick, Cadillac, Chevrolet, GMC, Jiefang, Opel, Vauxhall, Holden, and Wuling. General Motors have claimed the title of the world’s largest automaker through their vehicle unit sales. It also consists of a workforce full of 202,000 employees strong and it operates business in 157 different countries. GM also has production facilities in 31 different countries which are producing cars and trucks.
Now for a multinational successful company to all of a sudden beginning to struggle then soon later file for bankruptcy, something had to have gone terribly wrong. The General Motors bankruptcy saga all started from GM’s carelessness and lack of concern over their debts which piled up overtime. After a while the amount of debt became unsubstantial and coincidentally during this tough period for General Motors, the wrath of the 2008 recession took place and had its toll on General Motors course to bankruptcy. But it was not only external issues which determined the fate of General Motors, there were many problems internally which led up to the recession and soon became unbearable to deal with for GM; hence the bankruptcy. As the chairman of the Centre for Automotive Research, David Cole stated; even though the sales killing recession came just as soon as GM was about to turn around it still has nothing to do with the fact that the management of the company over the years made some key mistakes that hastened its decline. Here are some of the reasons which contributed to the demise of General Motors:
* In 2005 the back then CEO of GM Rick Wagoner faced questions about whether General Motors would be better off filing for bankruptcy in order to reorganize the company to enable them to cope with all its labour costs, debt load and excess dealers. But Wagoner had no interest in filing for bankruptcy as he felt that it would drive away the buyers and irreparably harm workers and shareholders. But Martin Weiss, president of Weiss Research begged to differ – ‘they could’ve been leaner and meaner to prepare for the tough times that were coming,’ Weiss stated.
* Another habit which GM possessed was non-stop incentives which eventually drove them into ground. After the terrorist attacks in 2001 General Motors began to offer consumer 0% financing on loans up to five years, but it didn’t stop there. Once the newness of that deal wore off, the company threw on a $3,000 rebate but it still didn’t stop there. Year after year they increased rebates, however in order to afford these rebates GM had to keep their sticker prices high; consequently consumers would no longer consider a GM vehicle because it’s sticker was much higher than its competitors. It only took GM till 2006 to find out they were damaging their selves with non-stop deals – lack of concentration...