General motors Essay Example | Topics and Well Written Essays - 2500 words

General motors - Essay Example At one point, GM was the largest corporation in the United States. It was also the single largest employer in the world but despite being industry leaders for several years, GM could not sustain competition from European and Japanese car makers. The company was beset with financial woes and in November 2005, GM had to lay off 30,000 employees and several plants had to be shut down. This is when its decline started which led to a complete restructuring of the company following the financial crisis in 2008. In this paper, after a brief history of the company, the financial crisis that the company faced and how it handled the situation would be evaluated. General Motors was incorporated on September 16, 1908 in New Jersey by William Capro Durant, a school drop-out. However during this period the auto industry in the US was in a mess with 45 different car companies already existing in the United States. By 1920s the demand for cars was high and GM brought in innovation in design and marketing. They introduced ‘a car for every purse and purpose’ and thus had Chevrolet, Vauxhall and Opel under its banner. The introduction of the Cadillac in 1927 made people see cars as more than a mode of transport. GM’s commitment to innovation continued even during the difficult times. Challenges gave way to changes during the 1960s and 70s as environmental concerns and competition from foreign car makers forced GM to reengineer its cars. This led to much lighter, aerodynamic and more fuel-efficient vehicles. Several innovative concepts were introduced by GM such as air bags, the use of unleaded gasoline while its contribution in r educing emissions is also recognized. In 1990, GM also introduced electric cars. However, as GM recognized the challenges in the US market, it started international expansion by opening its first production unit in Spain in 1982. This was the era of globalization when GM also formed joint ventures