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General Motors

General Motors. By: Jackson Spivey, Shaun Jameson, and Joel Vastl. GM. 2 nd largest auto manufacturing group in the world (by volume) Nearly 204,000 employees worldwide Focuses on four major North American brands: Chevrolet, Buick, GMC, and Cadillac Underwent Chapter 11 bankruptcy in 2009

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General Motors

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  1. General Motors By: Jackson Spivey, Shaun Jameson, and Joel Vastl

  2. GM • 2nd largest auto manufacturing group in the world (by volume) • Nearly 204,000 employees worldwide • Focuses on four major North American brands: Chevrolet, Buick, GMC, and Cadillac • Underwent Chapter 11 bankruptcy in 2009 • 61% ownership belongs to U.S. Department of Treasury

  3. History • Founded in 1908 by William Duran • Started out as only Buick, but within a few years acquired over 20 other companies • Early financial debt associated with the process of buying so many other companies • Following collapse of new car market, Alfred Sloan took control and led company to prominence • Led auto industry in global sales for 77 straight years (1931-2008)

  4. The Great Depression • Caused other automakers to go under • General Motors stayed in the black • Profitable margin except 1932 • GM underpriced competition and increased market share • GM was not immune to the effects of Depression • GM stock trade $73 then $16

  5. Net Sales and Income • 1929 Net sales - $1,504,404,472 Net income - $248,282,268
1930 Net sales - $983,375,137 Net income - $151,098,992
1931 Net sales - $808,840,723 Net income - $96,877,107
1932 Net sales - $432,311,868 Net income - $164,97

  6. National Bank of Detroit • 1933 auto sales plunged • GM helped form a bank in March 1933 • Positive signal to Americans who depended on the auto industry • National Bank of Detroit is part of JP Morgan Chase & Co.

  7. Downfall • In trouble long before economic crisis of 2008 • Nearly went bankrupt in 1991 and again in 2005. • Oil prices skyrocketed, increasing demand for high mileage vehicles • GM and other auto companies focused more on high profit SUV’s • Net losses of $10.6 Billion in 2006, $38.7 Billion in 2008

  8. Bankruptcy • U.S. and Canadian Governments provided billions in bailout money • Fourth largest bankruptcy case in U.S. history • U.S. Treasury awarded 61% of ownership • Autoworkers, Canadian Government, and Motors Liquidation Company own majority or remaining stock • CEO Rick Wagoner forced to resign • Motors Liquidation Company purchased most of assets

  9. A New GM • The General Motors Company, a group backed by U.S. Treasury, purchased most of the assets from “Old GM” • Repaid part of government loan • Will begin offering stock to employees and retirees in November • Initial Public Offering (IPO) to come soon • Government will sell some of its shares, but will most likely remain majority stock holder after IPO

  10. Back on the rise • 12 consecutive month increase in sales • Retail sales increased 48% compared to a year ago • Total sales are up 42% compared to a year ago

  11. GM’s Future Bare Necessities Car • Therese Tant- Creative designer • Wade Bryant- Manager of advanced design strategy • Charles Lefranc-Parts designer

  12. The “EN-V” • Electric Networked Vehicle • Launched in China • SAIC a Chinese based company teamed up with GM to help promote the vehicle in China. • http://www.youtube.com/watch?v=OiSmUr76bT0

  13. Looking to the future • Still a long road ahead • Billions still need to be repaid through dividends and interest • New GM trying to eliminate mistakes that failed previous company • Publicly traded shares are key to the future of the company • Chevy Volt considered future of electric cars

  14. Bibliography • Chard, Thea. "Test Driving the Future of General Motors: My Experience Behind the Wheel of the Chevy Volt | Xconomy." Business, Life Sciences, and Technology News | Xconomy. 13 Oct. 2010. Web. 13 Oct. 2010. <http://www.xconomy.com/seattle/2010/10/13/test-driving-the-future-of-general-motors-my-experience-behind-the-wheel-of-the-chevy-volt/>. • Gardner, Greg. "New GM Stock for Sale to Workers." 13 Oct. 2010. Web. 13 Oct. 2010. <http://www.freep.com/article/20101013/BUSINESS01/10130326/New-GM-stock-for-sale-to-workers>. • "General Motors Co. - Investor Relations - Investor FAQ." Web. 12 Oct. 2010. <http://phx.corporate-ir.net/phoenix.zhtml?c=231169&p=irol-faq>. • "GMC History Lesson." Generations of GM. Web. 11 Oct. 2010. <http://history.gmheritagecenter.com/wiki/index.php/GMC_History_Lesson>. • "History." General Motors | Corporate Website | GM. Web. 12 Oct. 2010. <http://www.gm.com/>. • "Humbled GM Files for Bankruptcy." 1 June 2009. Web. 12 Oct. 2010. <http://www.msnbc.msn.com/id/31030038/>.

  15. Bibliography Cont… • Mcgrew, Johnathon. "A Dawn Of the All-New GM? Maybe or Maybe Not - All Small Cars." Small Cars, Affordable Small Cars, Best Small Car: Honda Fit, Hyundai Elantra and More - All Small Cars. 11 July 2009. Web. 12 Oct. 2010. <http://www.allsmallcars.com/blog/1022116_a-dawn-of-the-all-new-gm-maybe-or-maybe-not>. • Motors Liquidation Company. Web. 12 Oct. 2010. <https://www.motorsliquidation.com/>. • Stoll, John D. "GM Takes New Direction - WSJ.com." Business News & Financial News - The Wall Street Journal - WSJ.com. 11 July 2009. Web. 12 Oct. 2010. <http://online.wsj.com/article/SB124722154897622577.html>.

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