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General Motors Company Analysis

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Submitted By ashleymicensky
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Introduction
The automotive manufacturing industry began in the late 1800’s and has undoubtedly changed mankind forever. General Motors Corporation is one of the leading automotive manufacturers in the world. GM is a corporation that designs, builds, and sells cars and trucks.
GM owns 18 brands some of which include Chevrolet, GMC, Cadillac, and Buick. The company operates in 160 countries, employs roughly 207,000 people, and is one of the world’s largest vehicle manufacturers (IBIS World, 2015).
The automotive industry in the United States is worth $123 billion and has $5.2 billion in annual profit (IBIS World, 2015). It is spread across 3 main competitors. Toyota Motor
Corporation, which holds 17.5% of the market share, General Motors Corporation, which holds
16.3% and Ford Motor Company, holds 11.3% of the market share in this industry (Mergent
Online, 2015).
Over the last 5 to 10 years the automotive industry in the United States has continuously fluctuated. As a result of the economic downturn, GM filed for Chapter 11 bankruptcy in June of 2009 and was bailed out by the U.S. government. During the Chapter 11 bankruptcy, GM eliminated about one-third of its plant assets and workforce and reduced its debt from nearly $95 billion to $17 billion. GM has bounced back tremendously, by releasing brands such as Saturn and Hummer in an effort to cut costs, and in 2014 the company made $152 billion in revenue
(Mergent Online).
Other automotive companies have struggled as well, in 2010, Toyota’s brand reputation for vehicle reliability and safety was tarnished due to vehicle recalls. Toyota also endured its most significant operational complications in the past five years when the Great East Japan
Earthquake struck in March of 2011. With recent innovation strategies and strong marketing efforts Toyota ended 2014 with $226 billion in annual revenue

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