aditya srivastav general motors

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Aditya Srivastav

Roll No. RS1009B17

Reg. No. 1100946

CONTENT

* General Motors

* Company Overview

* Structure

* History

* Region of failure of GM

* Philanthropy

* Politics

* Environmental issues



General Motors

The General Motors Company, alsoknown as GM, is a United States-

based automaker with itsheadquarters in Detroit, Michigan.The company manufactures cars andtrucks in 34 countries, recentlyemployed 244,500 people around theworld, and sells and services vehiclesin some 140 countries.By sales, GM

ranked as the largest U.S. automaker and the world's second-largest for 2008. having the third-highest 2008global revenues among automakerson the Fortune Global 500

On June 1, 2009, the company filedfor a Chapter 11 reorganization,which was completed on July 10 of the same year, and it was thereafter reorganized once a new entityacquired the most valuable assets.GM is now temporarily majorityowned by the United States Treasuryand, to a smaller extent, the CanadaDevelopment Investment Corporationand the government of Ontario, withthe U.S. government investing a totalof US$57.6 billion under theTroubled Asset Relief Program.

The company plans to focus itsbusiness on its four core NorthAmerican brands: Chevrolet,Buick, GMC, and Cadillac. InEurope, following a period of negotiation to sell a majoritystake of the German brand Opel,the company decided to retainfull ownership of theseoperations. GM sold SaabAutomobile to Spyker Cars NV,and closed its doors to:

Hummer, Pontiac, and Saturn

Type Limited liability company

Industry Automotive

Founded 1908

Founder(s) William C. Durant

HeadquartersRenaissance Center

Downtown Detroit, Michigan, USA

Area served Worldwide

Key people

Edward Whitacre

(Chairman)

Daniel Akerson

(CEO)

Products Automobiles

Owner(s)

-United States Department of the Treasury

(61%)

-United Auto Workers Union Voluntary

Employee Beneficiary Association (17.5%)

-Canada Development Investment

Corporation (7.9%)

-Government of Ontario (3.8%)

-Bond holders of Motors Liquidation

Company (9.8%)

Employees 204,000 (2009)

Divisions

Chevrolet

Buick

Cadillac

GMC

Subsidiaries

Vauxhall

AC Delco

General Motors Canada

General Motors do Brasil

General Motors India

General Motors Ventures

Global Hybrid Cooperation

General Motors South Africa

GM-AvtoVAZ

GM Daewoo (70.1%)

GM Holden Ltd

GM Performance Division

OnStar

Opel

Website GM.com



brands; the latter two remaining under the old GM, now known as MotorsLiquidation Company.

•

Company overview

The General Motors GMT800 truck assembly line. (2006)

In 2009, GM employed approximately 244,500 people around the world. The RenaissanceCenter, located in Detroit, Michigan, United States, is GM's global headquarters. In 2008,GM sold 8.35 million cars and trucks globally. GM is the majority shareholder in GMDaewoo Auto & Technology Co. of South Korea and has collaborations with ShanghaiAutomotive Industry Corporation of China, AvtoVAZ of Russia, and most recently,UzAvtoSanoat of Uzbekistan. GM has had collaborations with various automakers including

Fiat (see GM/Fiat Premium platform) and the Ford Motor Company. GM retains variousstakes in different automakers. GM's best success internationally has been its performance inChina, where GM's sales rose 66.9 percent in 2009, selling 1,830,000 vehicles andaccounting for 13.4 percent of the market.

GM worldwide vehicle sales by

country 2008

(thousands)

Rank

in

GM

CountryVehicle

sales

Market

share

(%)1

UnitedStates

2,981 22.1%

2 China 1,095 12.0%

3 Brazil 549 19.5%

4United

Kingdom384 15.4%

5 Canada 359 21.4%

6 Russia 338 11.1%

7 Germany 300 8.8%

8 Mexico 212 19.8%9 Australia 133 13.1%

10South

Korea117 9.7%

11 France 114 4.4%

12 Spain 107 7.8%

13 Argentina 95 15.5%

14 Venezuela 91 33.3%

15 Colombia 80 36.3%

16 India 66 3.3%

Top-four markets/regions by vehicle

sales in 2008 (thousands)

Rank

in

GM

Market/RegionVehicle

sales

Market

share

(%)

1 North America 3,552 21.9%2 China 1,095 12.0%

3 European Union 905 12.3%

4 South America 815 20.8%

Structure



GM is structured into the following segments:

SegmentNumber of employees

March 2010

GMNA (GM North America) 103,000

GMIO (GM International Operations) 57,000

Adam Opel GmbH (Europe) 47,000

Total number of employees 207,000

Management

The Renaissance Center in Detroit, GM's world headquarters.

On July 23, 2009, GM announced its new Board of Directors: Dan Akerson, DavidBonderman, Robert D. Krebs, Patricia F. Russo and Ed Whitacre (GM Chairman and Interim

Chief Executive Officer). Board members who are not GM employees will be paidUS$200,000 annually.

As of December 1, 2009, The General Motors Board of Directors accepted Frederick Henderson's resignation. In January 2010, chairman Whitacre was appointed permanent chief executive officer after previously serving in an interim capacity.

On December 4, 2009, GM announced leadership changes in a press release.

• Edward Whitacre, Jr. - Chairman of the Board of the Directors and Chief ExecutiveOfficer

• Robert A. Lutz - Vice Chairman, advisor on design and global product development• Chris Liddell - Vice Chairman and Chief Financial Officer • Thomas G. Stephens - Vice Chairman, Global Product Operations• Mark Reuss - President, GM North America• David N. Reilly - President, GM Europe/Adam Opel GmbH• Timothy E. Lee - President, GM International Operations (Asia-Pacific, Latin

America, Africa, and Middle East)• Ray Young - vice president, International Operations• Edward T. Welburn - Global Vice President of General Motors Design, current and

only the sixth head designer.

For additional senior management see GM Senior Leadership Group

Whitacre was very active in GM's advertising. He appeared in an advertisement touting thecompany's 60-day, money-back guarantee soon after the company exited bankruptcy and atelevision advertisement that boasted the repayment of $6.7 billion loan from governmentahead of schedule, which caused a controversy. On August 12, 2010 GM announced thatWhitacre would relinquish the CEO position effective September 1, 2010 and that of Chairman of the Board at the end of the year, to be replaced in those functions by current

board member Dan Akerson.

GM is a conglomerate.



History

The company was founded on September 16, 1908, in Flint, Michigan, as a holding companyfor Buick, then controlled by William C. Durant. GM's co-founder was Charles Stewart Mott,whose carriage company was merged into Buick prior to GM's creation. Over the years Mott

became the largest single stockholder in GM and spent his life with his Mott Foundation,whose benefit was shone on the city of Flint, his adopted home. It acquired Oldsmobile later that year. In 1909, Durant brought in Cadillac, Elmore, Oakland and several others. Also in1909, GM acquired the Reliance Motor Truck Company of Owosso, Michigan, and the RapidMotor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. Durant lostcontrol of GM in 1910 to a bankers' trust, because of the large amount of debt taken on in itsacquisitions coupled with a collapse in new vehicle sales. The next year, Durant started theChevrolet Motor Car Company and through this he secretly purchased a controlling interest

in GM. Durant took back control of the company after one of the most dramatic proxy warsin American business history. Durant then reorganized General Motors Company intoGeneral Motors Corporation. Shortly after, he again lost control, this time for good, after thenew vehicle market collapsed. Alfred P. Sloan was picked to take charge of the corporationand led it to its post-war global dominance. This unprecedented growth of GM would lastinto the early 1980s when it employed 349,000 workers and operated 150 assembly plants.

GM previously led in global sales for 77 consecutive years (1931 to 2008), longer than anyother automaker.On August 18, 2010 General Motors filed its long-awaited IPO prospectuswith the SEC, officially setting the wheels in motion for an IPO later this year.

Region of failure of GM

On July 10, 2009, a new entity, NGMCO Inc. purchased the ongoing operations andtrademarks from General Motors Corporation. The purchasing company, in turn, changed itsname from NGMCO Inc. to General Motors Company, marking the emergence of a newoperation from the "pre-packaged" Chapter 11 reorganization.Under the reorganization

process, termed a 363 sale (for Section 363 which is located in Title 11, Chapter 3,Subchapter IV of the United States Code, a part of the Bankruptcy Code), the purchaser of the assets of a company in bankruptcy proceedings is able to obtain approval for the purchasefrom the court prior to the submission of a re-organization plan, free of liens and other claims. It is used in most Chapter 11 cases that involve a sale of property or other assets. This

process is typical of large organizations with complex branding and intellectual propertyrights issues upon exiting bankruptcy. The new company plans to issue an initial publicoffering (IPO) of stock in 2010.

GM's remaining pre-petition creditors' claims are paid from the remaining assets of MotorsLiquidation Company, the new name of the former General Motors Corporation, although thedirectors of that company believe its debts far outweigh its assets. This means that while theformer GM's bondholders may recover a small portion of their investment, former GMshareholders (now shareholders of Motors Liquidation Company) will likely not receiveanything.



Also on July 10, 2009, GM announced plans to trim its U.S. workforce by 20,000 employeesas part of its reorganization by the end of 2009 due to economic conditions.

The following table is a comparison (estimates) of the new GM and the old GM:

Old GM (before July 10, 2009) New GM (after July 10, 2009)Vauxhall, Pontiac, Chevrolet,Cadillac, GMDaewoo (48.2%),Hummer, GMC, Saturn, Holden,Saab, Buick, Opel

BrandsVauxhall, GMDaewoo (70.1%), Chevrolet,Cadillac, GMC, Holden, Buick, Opel

5,900U.S.

Dealerships5,000

Common shareholders, bondholders and secured creditors

Ownership

U.S. Treasury, Canada DevelopmentInvestment Corporation, Government of Ontario, Old GM bondholders, and the

United Auto Workers sponsored VEBA47 U.S. Plants 34

US$94.7 billion Debt US$17 billion

91,000U.S.

employees68,500

Philanthropy

Since 1996, General Motors has been the exclusive source of funding for Safe Kids USA's"Safe Kids Buckle Up" program, a national initiative to ensure child automobile safety

through education and inspection. Through 2002, the Pace Awards program led by GM, EDS,and SUN Microsystems, gave over $1.2 billion of in-kind contributions which includescomputers to over 18 universities to support engineering education. In 2009, the GM ledgroup has helped the Pace Awards program worldwide.General Motors is a leadingcontributor to charity. In 2004, GM gave $51,200,000 in cash contributions and $17,200,000in-kind donations to charitable causes.

Politics

In the 2008 election cycle, General Motors contributed $802,414, with 52 percent of thatamount going to the Democrats and 48 percent to the Republicans. GM's Saturn division putup a display at the 2009 Detroit Auto Show congratulating Barack Obama on his election asthe first African-American president of the United States.

Environmental issues

In the middle of 1999, the Environmental Protection Agency (EPA) removed 23,000 cubicyards (18,000 m3) of contaminated sediments and soil from the General Motors site inMassena, New York for disposal at a licensed facility in Utah. The amount contained13,000 cubic yards (9,900 m3) of contaminated sediments dredged from the St. LawrenceRiver. The sediments had been stored on the site since 1995. There was also 10,000 cubic

yards (7,600 m3) of contaminated sludge from the active wastewater treatment plant on theGeneral Motors property. The Political Economy Research Institute ranks GM 18th among



corporations emitting airborne pollutants in the United States. The ranking is based on theemission quantity (8 million pounds in 2005) and toxicity.

In September 2006, the state of California filed suit against General Motors, Chrysler, Nissan, Toyota, Honda, and Ford. The companies were accused of producing cars that

emitted over 289 million metric tons of carbon per year in the United States, accounting for nearly 20 percent of carbon emissions in the United States and 30 percent of carbonemissions in California. This lawsuit was dismissed by a judge in September 2007.

aditya srivastav general motors

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