China[ edit ] Inthe Chinese government reduced automotive taxes in order to spur flagging sales.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. General Motors Bailout Problem Essay Sample Introduction Founded inGeneral Motors has been one of the largest corporation and the second largest automaker in the world coming after Toyota.
For 77 consecutive years from toGM has been a leading automaker and marketer as ranked by the total number of units sold yearly. General motors have also been a leading employer not only in the United States but also in other parts of the world where it operates.
However, the company has been seriously affected by the current economic crisis. However, the problem at GM and in the general United States automotive industry cannot be attributed to the current economic crisis alone. Their problems can be traced to the oil crisis of the s where the government came up with new rules aimed at reducing the rate of fuel consumption.
Consequently, General Motors and other American auto makers continued with their fuel guzzling SUVs especially in the s leading to stiff competition from foreign automakers especially Japanese cars which were considered fuel efficient and friendly to the environment.
Therefore The gm bailout essay problems facing GM do not attribute to economic crisis alone but also due to other issues related to organization culture.
The company has also negotiated payment package with the union which has continued to drain its resources despite its declining revenues.
General Motors has consequently lain off million of workers and closed down some of it plants in a bid to reduce the cost of operation. The company has also sought government bailout package which will prevent the company from collapsing.
However, the problems faced by GM may not e easily solved by the government bailout package. The company needs to restructure its operation to reflect the current consumer preference in term of fuel efficient cars. In wake of stiff competition from Japanese cars, the company needs to come up with new operational plan that will include re-negotiation of the labor policies to ensure that the company can pay what it can afford.
Like what many have argued, it may not take a one sided approach to awaken the giant company. It requires a complete overhaul from the management, coming up with new operation plan, negotiation of labor laws, extensive market research, and in extreme condition, the company may think of merging with other automakers to reduce the cost of operation.
Therefore the current government bailout plan may not turn round the company unless there are other extensive changes that will be taken to complement the stimulant package. The company was founded in in Michigan first as a holding company which was controlled by William Durant.
However, the company soon faced a number of challenges and it collapsed with the collapse of the new auto market. It was after Alfred Sloan took over the leadership of the company that it started its upward growth trend until the s when foreign automakers made their way to the American auto market.
Since the end of the Great Depression, GM had undertaken globalization efforts establishing its operation in most European countries. The company has also expanded its operation to emerging Asian markets like South Korea, and others. General Motors is one of the largest employers in the world although in recent years it has sent home thousands of its employees.
Currently, the company has more thanemployees in the world.
It headquarters are located in Renaissance Center in Detroit, Michigan. Although its sales have been reducing drastically, GM produced more than 1. Although it has reduced the number of acquisitions, GM has collaborated with other automakers in the world.
It has various stakes in different companies in the world which reassert its global influence in the automotive industry.Essay about Gm Bailout GENERAL MOTORS BAILOUT PROBLEM Introduction Founded in , General Motors has been one of the largest corporation and the second largest automaker in the world coming after Toyota.
The Auto Industry Bailout Detroit, Michigan grew up around the automobile industry. At its peak, Detroit was the fifth-largest city in the United States, becoming the home to over million people by (Davey, Monica ).
Oct 30, · Five years after an unprecedented government bailout there's no shortage of people--including President Obama--taking credit for rescuing the most important industrial company in American history.
Every so often, we ought to celebrate our victories. The auto bailout is a case in point. Six years ago, it was wildly controversial, with the fate of General Motors and Chrysler in . Open Document.
Below is an essay on "Gm Bailout" from Anti Essays, your source for research papers, essays, and term paper examples. General Motors Bailout Problem Essay Sample. Introduction.
Founded in , General Motors has been one of the largest corporation and the second largest automaker in the world coming after Toyota.