This essay GM Overview has a total of 2750 words and 12 pages.
The automotive industry has been in a downward spiral for several years. High fuel prices and the current economic condition has impacted consumer spending. With unemployment at record highs and impending layoffs, the public is looking for economical vehicles. Although the three large car manufacturers are offering various incentives and programs to encourage spending, they are still experiencing low sales figures and all have sought government loans just to continue operating.
General Motors Overview
The birth of the car as known today took several years and the works and developments of many people. It was not until 1885 that the first car rolled down the streets; however, earlier attempts at steam powered road vehicles were successful, giving people the idea that cars as they are now known them today have existed for a great deal longer than they have. The next step towards the development of the car was the invention of the internal combustion engine. Francois Isaac de Rivaz designed the first internal combustion engine in 1807, using a mixture of hydrogen and oxygen to generate energy. The development of the automobile changed the face of small-town America. As time passed, cars became less of luxury and more of a necessity. However, after a century of automobiles, finally is the realization of the long-term effects of transport by internal combustion and are looking for alternative forms of fuel and transportation (GoCurrency.com, 2006).
The history of GM, the world's largest automaker, saw its beginning in 1908. The company was founded by William Durant in the year 1902. Durant realized that the future lay with cars and not carriages. Initially, the company was founded as a holding company for Buick. The latter part of the year saw the company acquiring Oldsmobile, followed by the possession of Cadillac, Oakland and Elmore in the very next year. During the financial boom in the 1920's, the history of GM virtually glowed with success. Auto sales reached the 4.5 million mark, and the auto industry now had three giants - GM, Ford and Chrysler. There was a time in the History of GM when it was the largest corporation in the US. The history of GM also shows that there was a time when GM was the single largest employer in the world. But, in recent times GM has been beset with financial woes. November 2005 saw GM booking a $4 billion loss and about 30,000 employees were laid off. 12 plants were closed down (Berg, William).
After GM's massive lay-offs hit Flint, Michigan a strike began at the General Motors parts factory in Flint on June 5, 1998, which quickly spread to five other assembly plants and lasted seven weeks. GM, to date, has been the world's leading auto manufacturer for 74 years consecutively. On December 21, 2005 Toyota Motor Corp. announced that it would produce 9.06 million vehicles for 2006. Analysts estimate that GM will only produce around 8.825 million cars for 2006, giving up the title of the world's largest auto maker. However, CEO Rick Wagoner is confident that GM will remain #1. Regardless, GM's status as both an automotive and corporate juggernaut is in jeopardy. Its financial difficulties have dragged stock value down; as of March 23, 2006, GM's market capitalization is roughly $12.5 billion (Histomobile, 2009).
Real GDP is a macroeconomic measure of the size of an economy adjusted for price changes and inflation. It measures in constant prices and the output of final goods and services and incomes within an economy. The formula for the definition is [(Nominal GDP)/(GDP deflator)] x 100, but in many occasions it is not calculated in this way. Real Gross Domestic Product or (GDP) is calculated as prices in the "base year" multiply by the quantities in the current year, such that production is held constant for the value of currency. Real GDP for a given year is the given year's nominal GDP stated in the based year price level. Real GDP growth on an annual basis is the nominal and abnormal GDP growth rate adjusted for inflation and expressed as a percentage. Because Real Gross Domestic Product is adjusted for any changes in prices, and inflation throughout the year, it can also be thought of in terms of purchasing power. As a result, individual purchasing power can be measured by Real GDP per capita, for example, Real Gross Domestic Product is
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