The General Motors Overview - Assignment Example

General Motors (GM) which started working in 1908 with its roots in Detroit is one of the world’s largest automobile selling companies. Three years back it had gone bankrupt and the United States government had bailed it out by providing finance to the company for a resurgence. However, today it has proved itself by coming out of the crisis as a winner. The Wall Street Journal reported on Wednesday, 8 June 2011 that the general Motors have done a surprising turn around since its bankruptcy in the year 2008.

The journal stated that General Motors has $30.5 billion in cash and securities and less than $5 billion in automotive debt, as a result of the U.S. governments bailout. Daniel Akerson, Chairman and Chief Executive of GM, spoke to his shareholders regarding the current position of his company. He stated that “GM has gone from almost being history to making history” (Terlep). A new GM has been created after bringing about numerous changes in his company. The new GM has gone on to become the largest IPO ever in a span of 18 months.

The progress has happened through review of design, engineering and manufacturing footprints, reducing complexities and eliminating costs (Terlep). A new senior management team had been recruited and more talented people from within and outside had been employed to build new business models. Some analysts have predicted that GM will have a market growth of more than 12MM units from 2010 to 2015, and GM has become the market share leader in the BRIC countries (Terlep). Today it has a retail market share of 17.

7% as compared to 14.9% share for four of its brands in May 2009(Terlep). They have successfully invested $3.4B in the U.S and thereby generated 9000 new jobs since its bankruptcy. They have further announced an additional $2B in U.S. facility investment which will support 28000 other jobs (Terlep).