The General Motors Company has been in the automobile industry since 1908 through which time it has diversified its operations to over 140 countries. The company produces thirteen different brands of motor vehicles including Chevrolet, Opel, GMC, Holden and Cadillac which are popular brands in the market. The diversity of the company required management to subdivide it into five different segments, including GM North America, which operates in North America, Opel Group situated in Germany and GM South America. The financial status of the company is tackled by the segment of GM Financials while GM International Operations handles the operations of the business. This segmentation has assisted in keeping track of the company diverse operations and ensure segregation of duties.
The employees’ level in the company stands over 202,000 people worldwide, which has enabled the company to be the leading automobile selling company in the world for over 77 years. This record was, however, demeaned in 2009 when the company when the company was hit by Chapter 11 bankruptcy. According to Holstein, (2009), during this year, the US Treasury invested $ 49.5 billion, which were later disposed in 2014 leading to a loss of $10.3 billion. The government reorganization also proved that the company had conserved over $34 billion in tax and $1.2 million jobs. The reorganization bankruptcy led to the company disposing several brands, closure of some factories such as the Hummer and Saturn while the Saab automobile was sold to Spyker in Netherlands. To emerge from this situation, GM announced a public offer to acquire capital. This lead to their come back to profitability in 2010 raising its motor vehicle sales level to 8.4 million globally.
Research and development in the company have been a continuous trend to ensure innovation and continuity in the market. According to Davis (1999), in 1939, the company produces the first automatic transmission in the market while in 1962 the company implemented the first engine charged by turbo. Recruiting of renowned engineers in the company such as Robert Lee leads to the invention of the fabricated permanent magnet in 1984 while the first full sized hybrid pick-up was introduced by the company in 2004. Introduction of the Chevrolet Volt in 2010 which was an electric driven vehicle indicated that the innovative and advancement of the company was still in place. These innovations are made possible by the diversity and technology advancement in the company which has a wide network with six laboratories and science offices, combined relations internationally with learning institutions such as universities, governments and partners on an international level.
The financial status of the company has been on an upward movement since 2010 through which years it has reported high annual profits. The company carried forward the losses reported during previous years to reduce the tax liability thus increasing its net earnings. These profits were attributed to its reorganization and initial public offer which increased its capital base thus availing funds for operations. However, completion in the industry has been increased by the introduction of other companies which has increased the need for aggressive marketing and innovation within the company.
General Motors has been involved in diverse motor touring sports and showrooms in a bid to increase customer awareness. These include the World Touring Car Championship and V8 Supercars which is organized and attended by automobiles companies to show case their engine power. During these occasions the company won the V-8 class engine power levels throughout the 1990s which indicated the capability of their small car engines (Holstein, 2009).
References
Holstein, W. J. (2009). Why GM matters: Inside the race to transform an American icon. New York: Walker.
Davis, M. W. R. (1999). General Motors: A photographic history. Charleston, S.C: Arcadia Pub.
