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General Motors Corporation, also known as GM or GMC, is the world's largest car manufacturer. Founded in 1908, in Flint, Michigan, GM employs approximately 284,000 people around the world. With global headquarters at the Renaissance Center in Detroit, Michigan, USA, GM manufactures its cars and trucks in 33 countries. Their European headquarters is based in Zurich, Switzerland. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall. Chevrolet outsold its oldest domestic rival Ford Motor Co. in 2005 for the first time in over 3 decades, closing at over a 700,000 unit sales gap. GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea and has product collaborations with Suzuki Motor Corporation, Toyota Motor Corporation and Isuzu Motors Ltd. of Japan. GM also has advanced technology collaborations with Toyota Motor Corporation of Japan, DaimlerChrysler AG and BMW AG of Germany and vehicle manufacturing ventures with Shanghai Automotive Industry Corporation of China, AutoVAZ and Avtotor of Russia and Renault of France.
HistoryImage:GM headquarters in Detroit.JPG The Renaissance Center in Detroit, Michigan, is General Motors' world headquarters. Early historyGeneral Motors was founded on Wednesday, September 16, 1908 in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant, and acquired Oldsmobile later that year. The next year, Durant brought in Cadillac, Elmore, Oakland (later known as Pontiac) and several others. In 1909, General Motors acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. Durant lost control of GM in 1910 to a bankers trust, because of the large amount of debt taken on in its acquisitions around 1.0 million dollars. Durant left the firm and helped establish the Chevrolet Motor Company in 1911 with brothers Gaston and Louis Chevrolet. After a brilliant stock buy back campaign, he returned to head GM in 1916, with the backing of Pierre S. du Pont. Chevrolet entered the General Motors fold in 1917; its first GM car was 1918's Chevrolet 490. Du Pont removed Durant from management in 1920, and various Du Pont interests held large or controlling share holdings until about 1950. In 1918 GM purchased the McLaughlin Motor Car Company of Oshawa, Ontario, Canada, manufacturer of the McLaughlin-Buick automobile, and renamed it General Motors of Canada Ltd., with R.S. "Colonel Sam" McLaughlin as its first president.
1930s diversificationDuring the 1920s and 1930s, General Motors control of the Yellow Coach bus company, and helped create Greyhound bus lines. They replaced intercity train transport with buses, and established subsidiary companies to buy out streetcar companies and replace the rail-based services as well with buses. GM formed United Cities Motor Transit in 1932 (see General Motors streetcar conspiracy for additional details). In 1930, GM also began its foray into aircraft design and manufacturing by buying Fokker Aircraft Corp of America (U.S. subsidiary of Fokker) and Berliner-Joyce Aircraft, merging them into General Aviation Manufacturing Corporation. Through a stock exchange GM took controlling interest in North American Aviation and merged it with its General Aviation division in 1933, but retaining the name North American Aviation. In 1948, GM divested NAA as a public company, never to have a major interest in the aircraft manufacturing industry again. General Motors bought the internal combustion engined railcar builder Electro-Motive Corporation and its engine supplier Winton Engine in 1930, renaming both as the General Motors Electro-Motive Division. Over the next twenty years, diesel-powered locomotives — the majority built by GM — largely replaced other forms of traction on American railroads. (During World War II, these engines were also important in American submarines and destroyer escorts.) Electro-Motive was sold in early 2005. World War IIGeneral Motors produced vast quantities of armaments, vehicles and even aircraft during World War II. During the war, the U.S. auto companies were concerned that the Nazis would nationalize American owned factories in Germany. In the spring of 1939, the Nazis had assumed day to day control of American owned factories in Germany, but decided against nationalizing them. GM's William P. Knudson served as head of U.S. wartime production for President Franklin Roosevelt who had referred to Detroit as the Arsenal of Democracy. Today, Detroit is the headquarters for the U.S. Army Tank-Automotive and Armaments Command, known as TACOM. Nevertheless, while General Motors has claimed that its German operations were outside its control during World War II, this assertion appears to be contradicted by available evidence. General Motors was not just a car company that happened to have factories in Germany; GM management from the top down had extensive Nazi connections, both on a business and personal level.[2] American GM Vice President Graeme K. Howard (later colonel Graeme K. Howard) was a committed Nazi, with such views expressed in his book, America and the New World Order. Adolf Hitler awarded GM boss James D. Mooney the Order of Merit of the Golden Eagle for his services to Nazi Germany. General Motors’ internal documents show a clear strategy to profit from their German military contracts even after the outbreak of war between America and Germany. Defending the German investment strategy as “highly profitable”, GM’s Alfred P. Sloan told shareholders in 1939 that GM’s continued industrial production for the Nazi government was merely sound business practice. In a letter to a concerned shareholder, Sloan said that the manner in which the Nazi government ran Germany "should not be considered the business of the management of General Motors...We must conduct ourselves as a German organization. . . We have no right to shut down the plant."[3] After 20 years of researching General Motors, Bradford Snell stated that: "General Motors was far more important to the Nazi war machine than Switzerland ... Switzerland was just a repository of looted funds. GM was an integral part of the German war effort. The Nazis could have invaded Poland and Russia without Switzerland. They could not have done so without GM.”[4] Post-war growthAt one point GM had become the largest corporation registered in the United States, in terms of its revenues as a percent of GDP. In 1953, Charles Erwin Wilson, then GM president, was named by Eisenhower as Secretary of Defense. When he was asked during the hearings before the Senate Armed Services Committee if as secretary of defense he could make a decision adverse to the interests of General Motors, Wilson answered affirmatively but added that he could not conceive of such a situation "because for years I thought what was good for the country was good for General Motors and vice versa". Later this statement was often misquoted, suggesting that Wilson had said simply, "What's good for General Motors is good for the country." At the time, GM was one of the largest employers in the world – only Soviet state industries employed more people. On December 31, 1955, General Motors became the first American corporation to make over one billion dollars in a year. Recent historyAfter GM's massive lay-offs hit Flint, Michigan, a strike began at the General Motors parts factory in Flint on June 5, 1998, which quickly spread to five other assembly plants and lasted seven weeks. Because of the significant role GM plays in the United States, the strikes and temporary idling of many plants noticeably showed in national economic observations. In the late 1990s, GM had regained market share; its stock had soared to over $80 a share by 2000. However, in 2001, the stock market drop following the September 11, 2001 attacks, combined with historic pension underfunding, caused a severe pension and benefit fund crisis at GM and many other American companies and the value of their pension funds plummeted. A weak U.S. dollar and private health care (as opposed to nationalized health care in other countries) costs also put GM at a disadvantage to its Japanese, Korean, and European counterparts. In successive moves, GM responded to the crisis by fully funding its pension fund; however, its Other Post Employment Benefits Fund (OPEB) became a serious issue resulting in downgrades to its bond rating in 2005. The company expressed its disagreement with these bond rating downgrades. In 2006, GM responded by offering buyouts to hourly workers to reduce future liability; over 35,000 workers responded to the offer, well exceeding the company's goal. GM has gained higher rates of return on its benefit funds as a part of the solution. Stock value has begun to rebound - as of October 30, 2006 GM's market capitalization was about $19.19 billion. GM stock began the year 2006 at $19 a share, near its lowest level since 1982, as many on Wall Street figured the ailing automaker was bound for bankruptcy court. But GM is still afloat. The company's stock in the Dow Jones industrial average has posted the biggest percentage gain in 2006.[5] Since 2000, GM has remained the world's largest auto maker, ranked according to sales. Renault-Nissan proposalOn June 30, 2006, Kirk Kerkorian, whose Tracinda Corporation was the third-largest shareholder of General Motors, proposed a failed deal for an alliance between GM and Renault & Nissan. Tracinda has since sold off its interest in General Motors. Recent news media have uncovered a proposed plan in which GM would purchase most, if not all of the Chrysler Group from DaimlerChrysler. Various plans have been proposed, including a large cash payment or a stock trade between GM and DCX. Electronic Data Systems CorporationImage:Logo eds.gif EDS logo In 1984, GM acquired Electronic Data Systems Corporation (EDS), a leading data processing and telecommunications company, to be the sole provider of information technology services for the company. EDS became independent again in 1996, signing a 10-year agreement to continue providing IT services to General Motors. [6] Hughes Electronics CorporationImage:Hughes Electronics.gif Hughes logo, adopted after its new owner General Motors Hughes Electronics was formed in 1985 when Hughes Aircraft was sold by the Howard Hughes Medical Institute to GM for $5.2 billion. GM merged Hughes Aircraft with its Delco Electronics unit to form Hughes Electronics. This division was a major aerospace and defense contractor, civilian space systems manufacturer and communications company. The aerospace and defense business was sold to Raytheon in 1997 and the Space and Communications division was sold to Boeing in 2000. Hughes Research Laboratories became jointly owned by GM, Raytheon, and Boeing. In 2003, the remaining parts of Hughes Electronics was sold to News Corporation and renamed DirecTV Group. Auto racingGeneral Motors has an extensive history in numerous forms of racing. Vehicles of most, if not all, of GM's brands have been represented in competition, with perhaps Chevrolet being the most prominent. In particular, the Chevrolet Corvette has long been popular and successful in international road racing. GM also is a supplier of racing components, such as engines, transmissions, and electronics. GM's Oldsmobile Aurora engine platform was successful in open-wheel Indy-style racing throughout the 1990s, winning many races in the small V-8 class. An unmodified Aurora V-8 in the Aerotech, captured 47 world records, including the record for speed endurance in the Motorsports Hall of Fame of America. Recently, the Cadillac V-Series has entered motorsports racing. GM has also used many cars in the American racing series NASCAR. Currently the Chevrolet Monte Carlo is the only entry in the series but in the past the Pontiac Grand Prix, Buick Regal, Oldsmobile Cutlass, Chevrolet Lumina and Chevrolet Malibu were also used. Starting in March 2007, the Chevrolet Impala will be phased into the series. In touring cars (mainly in Europe) Vauxhall is a key player and former champion in the British Touring Car Championship (BTCC) series and competes with a Vauxhall Astra VXR in BTC spec. Opel is one of the three participants in the DTM series (along with Audi and Mercedes Benz) and is a former champion and competes with a unique 500 bhp vehicle that resmbles the Opel Vectra. Chevrolet competes with a Lacetti in the FIA World Touring Car Championship (WTCC). In Australia, there is the prestigious V8 Supercar Championship which is battled out by the two main rivals of Holden& Ford. The current Holden Racing Team cars are based on the Holden Commodore and run a 5.7-litre V8-cylinder engine producing 600+BHP (approx 450Kw Power) @ 7500rpm). These cars have a top speed of 300+km/h (185mph) and run 0-100km/h in less than 4 seconds. The Holden Racing Team is Australia's most successful team in Australian Touring Car History. In 2006 both the Teams and Drivers championship was won by the very closely linked Toll HSV Dealer Team Corporate structure and leadershipGeneral Motors is structured into the following groups:
Current members of the board of directors of General Motors are: Percy Barnevik, Erskine Bowles, John Bryan, Armando Codina, George Fisher, Karen Katen, Kent Kresa, Ellen Kullman, Philip Laskawy, Eckhard Pfeiffer, and Rick Wagoner (chairman). Jerome York, who was elected to the board on February 6, 2006 to represent Kirk Kerkorian abruptly resigned on October 6, 2006, following the decision by GM to break off talks about an alliance with Nissan and Renault. Rick Wagoner is also the chief executive officer of the company (since June 1, 2000), succeeding John F. Smith, Jr. Chairmen of the Board of General MotorsChairmen of the Board of General Motors[7]
Chief Executive Officers of General MotorsChief Executive Officers of General Motors[8]
Presidents of General MotorsPresidents of General Motors[9]
Corporate issuesSocial policiesGeneral Motors was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.[citation needed] GM has also given millions of dollars in computers to colleges of Engineering through its PACE Awards program.[citation needed] Environment and alternative vehiclesGeneral Motors has long worked on alternative-technology vehicles, and has recently led the industry with clean burning Flex Fuel vehicles that can run on either E-85 (ethanol) or gasoline. The company was the first to use turbochargers and was an early proponent of V6 engines in the 1960s, but quickly lost interest as the muscle car race took hold. They demonstrated [1] gas turbine vehicles powered by kerosene, an area of interest throughout the industry in the late 1950s, but despite extensive thermal recycling (developed by Chrysler) the fuel consumption was too high and starting torque too low for everyday use. They were also an early licensee of Wankel engine technology, even developing the Chevrolet Monza around the powerplant, but abandoned the alternative engine configuration in view of the 1973 oil crisis. In the 1970s and 1980s, GM pushed the benefits of diesel engines and cylinder deactivation technologies with disastrous results due to poor durability in the Oldsmobile diesels and drivability issues in the Cadillac 4-6-8 variable cylinder engines. In 1987 GM, in conjunction with Aerovironment built the Sunraycer which won the inaugural World Solar Challenge and was a showcase of advanced technology. Much of the technology from Sunraycer found its way into the Impact prototype electric vehicle (also built by Aerovironment and was the predecessor to the EV1. In 1996, GM introduced the EV1, the first modern mass-produced electric car, which was available by lease only (see below: Controversy over EV1). Despite the positive publicity generated by this vehicle and a long waiting list for the cars, the company cancelled the program after only a tiny production run, reportedly due to a "lack of consumer interest". GM forced the return of EV1 vehicles even though some owners wanted to keep them. The story of GM's non-support for its own product is portrayed in the 2006 documentary, Who killed the electric car?. The EV1 lived on in the powertrain of the S10 factory built electric vehicle assembled in Shreveport, Louisiana by General Motors. The electric motor had slightly decreased horsepower from the EV1 it was borrowed from because it was not as aerodynamic as the EV1 and so traded horsepower for range. See here for more information. Hybrid initiativeIn May 2004, GM delivered the world's first full sized hybrid pickups, and introduced a hybrid passenger car. In 2005, the Opel Astra diesel Hybrid concept vehicle was introduced. The 2006 Saturn VUE Green Line was the first hybrid passenger vehicle from GM and is also a mild design. GM has hinted at new hybrid technologies to be employed that will be optimized for higher speeds in freeway driving. Future hybrid vehicles should include the 2007 GMC Yukon, the Saturn Aura and an updated Saturn VUE based an Opel design like the Saturn Aura. GM has recently introduced the concept Chevrolet Volt which is a plug-in hybrid. GM’s current hybrid models: There is a GM hybrid powered bus: GM Magic Bus[10] Hydrogen initiativeGM has prided its research and prototype development of hydrogen powered vehicles, to be produced in early 2010, using a support infrastructure still in a prototype state. The economic feasibility of the technically challenging hydrogen car, and the low-cost production of hydrogen to fuel it, has also been discussed by other automobile manufacturers such as Ford and Chrysler. MarketingAt one time, each of GM's automotive divisions were targeted to specific market segments and despite some shared components, each distinguished itself from its stablemates with unique styling and technology. The shared components and common corporate management created substantial economies of scale, while the distinctions between the divisions created an orderly upgrade path, with an entry-level buyer starting out with a practical and economical Chevrolet and moving through offerings of the different divisions until the purchase of a Cadillac. The divisions were not competing with each other as much as passing along the same customer who would thus always be buying a GM product. The postwar automobile industry became enamored with the concept of "planned obsolescence", implemented by both technical and styling innovations with a typical 3-year product cycle. In this cycle, a new basic body shell is introduced and then modified for the next two years with minor styling changes. GM, Ford, and Chrysler competed vigorously in this new restyling environment. By 1958, the divisional distinctions within GM began to blur with the availability of high-performance engines in Chevrolets and Pontiacs. The introduction of higher trim models such as the Chevrolet Impala and Pontiac Bonneville priced in line with some Oldsmobile and Buick offerings was also confusing to consumers. By the time Pontiac, Oldsmobile and Buick introduced similarly styled and priced compact models in 1961, the old "step-up" structure between the divisions was nearly over. The 1960s saw the creation of compact and intermediate classes. The Chevrolet Corvair was a 6-cylinder answer to the Volkswagen Beetle, the Chevy II was created to match Ford's conventional Falcon and the Chevrolet Camaro/Pontiac Firebird was GMs counter measure to the Ford Mustang. Among intermediates, the Oldsmobile Cutlass nameplate became so popular during the 1970s that Oldsmobile applied the Cutlass name to most of its products in the 1980s. By the mid 1960s, most of GM's vehicles were built on a few common platforms and in the 1970s GM began to use nearly identical body panel stampings, differing only in internal and external trim items. The 1971 Chevrolet Vega was GMs launch into the new subcompact class. Problems associated with its innovative aluminum engines would damage GMs reputation more than perhaps any other vehicle in its history. During the late 1970s, GM would initiate a wave of downsizing starting with the Chevrolet Caprice which was reborn into what was the size of the Chevrolet Chevelle, the Malibu would be the size of the Nova, and the Nova was replaced by the troubled front-wheel drive Citation. By the 1980s, GM frequently "rebadged" one division's successful vehicle into several models across the divisions, all positioned close to one another in the market place. Thus a new GM model's main competition might be another model spawned off the same platform. This led to market "cannibalization" with the divisions spending time stealing sales from one another. Even today, the company's GMT360 mid-sized light truck platform has spawned the basic Chevrolet Trailblazer, Oldsmobile Bravada, GMC Envoy, Isuzu Ascender, Buick Rainier and Saab 9-7X. Though each model had a more or less unique mission, the trucks can hardly be discerned from one another. In the late 1990s, the U.S. economy was on the rise and GM and Ford gained market share producing enormous profits primarily from the sale of light trucks and sport-utility vehicles. From 2000 to 2001, the Federal Reserve in a move to quell the stock market, made twelve successive interest rate increases. Following the September 11, 2001 attacks, a severe stock market decline magnified the effect of GM's history pension and benefit fund underfunding, precipitating a crisis. At the same time, this crisis happened at other U.S. companies with similar histories, such as Ford, DaimlerChrysler, and United Airlines. GM began its Keep America Rolling campaign, which boosted sales, and other auto makers were forced to follow suit. The U.S. automakers saw gross margins deteriorate. In 2004, GM redirected resources from the development of new sedans to an accelerated refurbishment of their light trucks and SUVs for introduction as 2007 models in early 2006. Shortly after this decision, fuel prices increased by over 50% and this in turn affected both the trade-in value of used vehicles and the perceived desirability of new offerings in these market segments. The current marketing plan to extensively tout these revised vehicles as offering the best fuel economy in their class (of vehicle). GM claims its hybrid trucks will have gas-mileage improvements of 25%, besting the current fuel-economy leaders, Toyota and Honda.[citation needed] In the summer of 2005, GM announced that its corporate chrome emblem "Mark of Excellence" will begin appearing on all recently introduced and all-new 2006 model vehicles produced and sold in North America. The move is seen as an attempt by GM to link its name and vehicle brands more closely. In 2005, GM promoted sales through an employee discount to all buyers. Marketed as the lowest possible price, GM cleared an inventory buildup of 2005 models to make way for its 2006 lineup. While the promotion was a temporary shot in the arm for sales, it did not help the company's bottom line. GM has since changed its marketing strategy to a no haggle sticker policy in which all vehicle proces are lowered, but incentives are reduced, if not eliminated. EconomicsIn March 2005, the Government of Canada provided C$200 million in incentives to General Motors for its Ontario plants, and last fall it provided C$100 million to Ford Motor Co. to expand production and provide jobs, according to Jim Harris. Similar incentives were promised to non-North American auto companies like Toyota, Premier Dalton McGuinty said the money the province and Ottawa are pledging for the project is well-spent. His government has committed C$400 million, including the latest Toyota package of C$125 million, to the province's automobile sector, which helped finance $5 billion worth of industry projects. For the first time, in 2004 the total number of cars produced by all makers in Ontario exceeded those produced in Michigan. For the first time in 2004 GM sold more vehicles in other countries than inside the US. GM in ChinaGeneral Motors is the best selling foreign auto maker in China.[citation needed] The Buick brand is especially strong, led by the Buick Excelle subcompact. Cadillac initiated sales in China in 2004, starting with imports from the United States. GM pushed the marketing of the Chevrolet brand in China in 2005 as well, moving the former Buick Sail to that marque. The company manufactures most of its China-market vehicles locally, through its Shanghai GM joint venture. The SAIC-GM-Wuling Automobile joint-venture is also successful selling trucks and vans under the Wuling marque. Corporate restructuringAfter gaining market share in the late 1990s and making enormous profits General Motors stock soared to over $80 a share. However, in 2000, twelve successive interest rate hikes by the Federal Reserve to quell the stock market, and a severe stock market decline following the September 11, 2001 attacks, caused a pension and benefit funds crisis at General Motors and many other American companies. General Motor's rising retiree health care costs and Other Post Employment Benefit (OPEB) fund deficit prompted the company to enact a broad restructuring plan. Although GM had already taken action to fully fund its pension plan, its OPEB fund became an issue for its corporate bond ratings. GM had expressed its disagreement with the bond ratings; moveover, GM's benefit funds were performing at higher than expected rates of return. Then, following a $10.6 billion loss in 2005, GM acted quickly to implement its restructuring plan. For the first quarter of 2006 GM earned $400 million, signaling a turnaround had already begun even though many aspects of the restructuring plan had not yet taken effect. In February 2005, GM successfully bought itself out of a put option with Fiat for $2 billion USD (€1.55 billion). In 2000, GM had sold a 6% stake to Fiat in return for a 20% share in the Italian automaker. As part of the deal, GM granted Fiat a | ||||||||||||||||||||||||||||||
