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 Founded in 1908 by William Durant  1911- First auto company on NYSE  1927- took lead of industry from Ford.

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Presentation on theme: " Founded in 1908 by William Durant  1911- First auto company on NYSE  1927- took lead of industry from Ford."— Presentation transcript:

1  Founded in 1908 by William Durant  1911- First auto company on NYSE  1927- took lead of industry from Ford

2  1970’s-80’s Japanese gain market share  GM tried to match smaller car styles  2000’s- Recalls and Strikes

3  2008: 5,000 salary layoffs  2009: Government Bailout  Ch. 11 Bankruptcy  Motors Liquidation Company  2010: Rebirth, Restructure,  Largest IPO

4  Present Day: Daniel Akerson trying to get GM back on top.  Greener Cars  Repay debt to the government

5  Federal Emissions Requirements  Catalytic Converter  Safety

6  Plastic/Carbon Fiber Body  OnStar  Hybrid Cars  Hydrogen Powered cars

7  Barriers to Entry  High  Intensity of Rivalry  Extremely High  Bargaining Power of Suppliers  Low  Bargaining Power of Buyers  Low  Substitutes  Low

8  High Liquidity  Allows them to be more flexible in the future  Strong Global Presence  New found focus on individual brands  Increased product quality

9  Customer Loyalty  Stigma from the bailout  “Holes in the line up”  Declining US Market Share  United Auto Workers

10  Emerging Markets  South America  China  Alternative Fuel Technologies

11  Volatile Economy  Raw Material Prices  Oil Prices

12  Headquarters in Detroit, Michigan  Became global in the 1920s  Now manufacture vehicles in 31 countries

13  GM North America  GM Europe  GM South America  GM International Operations

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15  Retail sales fluctuate according to season  Production varies each month  Changeovers occur often throughout the year  New market entries, vehicle models  Business cycle depends on general economic conditions and consumer spending

16  The recession had a negative effect on GM’s United States Market  It also affected factors that determine consumers’ buying decisions  E.g. Price, quality, available options, style, safety, reliability, fuel economy, and functionality

17  G.M. Files for Bankruptcy  Dramatic Turnaround  Profitability Helped by Tax Breaks Carried Over Through Bankruptcy

18  G.M. Announces Still Losing Money in November 2009  2010 Turnaround -Rebuilding Operations -Increased Sales - full-year profit was equal to $2.89 a share

19  Competitive Cost Structure  Cleaner Balance Sheet  Stronger Liquidity

20  G.M. made $3.2 Billion in the 1 st Quarter -5 th Consecutive Profitable Quarter  Sales

21  In 2005 the auto industry rides a new trend of “Employee Prices for Everyone”.  2005 is a tough year for both companies.  “Way Forward”  GM looks for government help  GM emerges from bankrupcy  Ford rebuilds workforce

22  Now -Akerson Keeping the Ship Upright  5 Years -New CEO -Hydrogen Cars -Emerging Markets  20+ Years -Hydrogen Gas Stations -Staying Within Their Limits

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