General Motors

By: Jackson Spivey, Shaun Jameson, and Joel Vastl

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

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)

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

Net Sales and Income• 1929 Net sales - $1,504,404,472 Net income -

$248,282,2681930 Net sales - $983,375,137 Net income - $151,098,9921931 Net sales - $808,840,723 Net income - $96,877,1071932 Net sales - $432,311,868 Net income - $164,97

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.

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

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

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

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

GM’s Future Bare Necessities Car

• Therese Tant- Creative designer

• Wade Bryant- Manager of advanced design strategy

• Charles Lefranc-Parts designer

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

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

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/>.

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>.