General Motors

General Motors

GM logo
Company type	Public (NYSE: GM)
Industry	Automotive
Founded	1908
Headquarters	Detroit, Michigan, USA; manufacturing facilities in 30 U.S. states and 33 countries
Key people	Rick Wagoner, Chairman & CEO Robert A. Lutz, Vice Chairman Frederick Henderson, CFO Kirk Kerkorian, third-largest shareholder
Products	Automobiles Engines
Revenue	$192.604 Billion USD (2005)
Operating income	10,315,000,000 United States dollar (2022)
Net income	-$10.567 Billion USD (2005)
Total assets	208,300,000,000 United States dollar (2017)
Number of employees	326,999 (2006)
Website	www.gm.com

General Motors Corporation, also known as GM, is the world's largest automaker. Founded in 1908, GM today employs about 326,999 people around the world. With global headquarters in Detroit, Michigan, USA, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Oldsmobile (now defunct), Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates a finance company, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is a provider of vehicle safety, security and information services.

GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea, and has product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. GM also has advanced technology collaborations with DaimlerChrysler AG and BMW AG of Germany and Toyota Motor Corp. of Japan, and vehicle manufacturing ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry Corp. of China, AVTOVAZ of Russia and Renault SA of France.

GM Parts and accessories are sold under the GM, GM Performance Parts, GM Goodwrench and ACDelco brands through GM Service and Parts Operations, which supplies GM dealerships and distributors worldwide. GM engines and transmissions are marketed through GM Powertrain.

GM's largest national market is the United States, followed by China, Canada, the United Kingdom and Germany.

On June 30, 2006, Kirk Kerkorian, whose Tracinda Corporation is the third-largest shareholder of General Motors, proposed a global alliance between GM and the Renault-Nissan group. With Nissan's domestic sales sagging, Carlos Ghosn, the CEO of both Renault and Nissan expressed interest in possibly acquiring a stake in GM. GM held an emergency board meeting to examine Kerkorian's proposal; GM's board reaffirmed its support for CEO Rick Wagoner, and GM's turnaround plans. On July 14, 2006, after a meeting with Carlos Ghosn, Rick Wagoner decided to study the matter for 90 days, including non-alliance forming ventures.

History

General Motors Headquarters, Renaissance Center, Detroit, Michigan.

General Motors (GM) was founded in 1908 in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant, and acquired Oldsmobile later that year. The next year, Durant brought in Cadillac, Elmore, and Oakland. In 1909, General Motors acquired the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessor of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. The Chevrolet Motor Company, established in 1912 by brothers Louis and Gaston Chevrolet, entered the General Motors fold under the direction of William C. Durant in 1916.

GM surpassed Ford Motor Company in the 1920s thanks to the brilliant leadership of Alfred Sloan. While Ford continued to refine the manufacturing process to reduce cost, Sloan was inventing new ways of managing a complex worldwide organization while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model—they wanted style, power and prestige, which GM offered them. Thanks to consumer financing, easy monthly payments allowed far more people to buy GM cars—while Ford was moralistically opposed to credit. During the 1920s and 1930s, General Motors bought out the bus company Yellow Coach, helped create Greyhound bus lines, replaced intercity train transport with buses, and established subsidiary companies to buy out streetcar companies and replace the rail-based services with buses. GM formed United Cities Motor Transit in 1932 (see General Motors streetcar conspiracy for additional details).

General Motors produced a lion's share of allied weaponry during World War II in Metro Detroit, including the Sherman tank, and also had sizeable interests in Nazi Germany . During the war, the U.S auto companies were concerned that the Nazis would nationalize American owned factories in Germany. In the spring of 1939, the Nazis had assumed day to day control of American owned factories in Germany, but decided against nationalizing them. GM's William P. Knudson had served as head of U.S. wartime production for President Franklin Roosevelt who had referred to Detroit as the Arsenal of Democracy. Today, Detroit is the headquarters for the U.S. Army Tank-Automotive and Armaments Command, known as TACOM.

General Motors bought the internal combustion engined railcar builder Electro-Motive Corporation and its engine supplier Winton Engine in 1930, renaming both as the General Motors Electro-Motive Division. Over the next twenty years, diesel-powered locomotives and trains — the majority built by GM — largely replaced other forms of traction on American railroads. (During World War II, these engines were also important in American submarines and destroyer escorts.) Electro-Motive was sold in early 2005.

At one point GM had become the largest corporation registered to that point in the United States, in terms of its revenues as a percent of GDP. In 1953 Charles Erwin Wilson, then GM president, was named by Eisenhower as Secretary of Defense. When he was asked during the hearings before the Senate Armed Services Committee if as secretary of defense he could make a decision adverse to the interests of General Motors, Wilson answered affirmatively but added that he could not conceive of such a situation "because for years I thought what was good for the country was good for General Motors and vice versa". Later this statement was often misquoted, suggesting that Wilson had said simply, "What's good for General Motors is good for the country." At the time, GM was one of the largest employers in the world – only Soviet state industries employed more people. On December 31, 1955, General Motors became the first American corporation to make over one billion dollars in a year.

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.

In the late 1990s, GM had regained market share; its stock had soared to over $80 a share by 2000. However, in 2001, a sequence of twelve controversial interest rate hikes by the Federal Reserve to quell the stock market, combined with the September 11, 2001 attacks caused a severe pension and benefit fund crisis at GM and many other American companies and the value of their pension funds plummeted. In successive moves, GM responded to the crisis by fully funding its pension fund; however, its Other Post Employment Benefits Fund (OPEB) became a serious issue resulting in downgrades to its bond rating in 2005. The company expressed its disagreement with these bond rating downgrades. In 2006, GM responded by successfully offering buyouts to hourly workers to reduce future liabilty; over 35,000 workers responded to the offer well exceeding the company's goal. GM has successfully gained higher rates of return on its benefit funds as a part of the solution. Thus far, GM has endured these economic difficulties which negatively impacted its share holder value, sales, and market share. Stock value has rebounded slightly, and as of July 12, 2006, GM's market capitalization is roughly $16.75 billion.

Nevertheless, since 2000, GM has remained the world's largest auto maker by ranked according to sales. After oil company mergers, GM's rank changed to the 5th largest company in the United States and the world in terms of sales.

On June 30, 2006 the media reported that General Motors convened an emergency board meeting to discuss a proposal by shareholder Kirk Kerkorian to form an alliance between GM and Renault-Nissan. GM's board reaffirmed its support for CEO Rick Wagoner and GM's turnaround plans. On July 14, 2006, GM CEO Rick Wagoner decided to study the matter for 90 days, including non-alliance forming ventures.

General Motors Hughes Electronics

Main article: Hughes Electronics

GM Hughes Electronics was formed in 1985 when Hughes Aircraft was sold by the Howard Hughes Medical Institute to GM for $5 billion. GM merged Hughes Aircraft with its Delco Electronics unit to form GM Hughes Electronics (GMHE). This division was a major defense contractor, civilian space systems manufacturer and communications company. The defense business was sold to Raytheon in 1997 and the space and communications division was sold to Boeing in 2000.

Auto racing

General Motors has an extensive history in numerous forms of racing. Vehicles of most, if not all, of GM's brands have been represented in competition, with perhaps Chevrolet being the most prominent. In particular, the Chevrolet Corvette has long been popular and successful in international road racing. GM also is a supplier of racing components, such as engines, transmissions, and electronics. GM's Oldsmobile Aurora engine platform was successful in open-wheel Indy-style racing throughout the 1990s, winning many races in the small V-8 class. An unmodified Aurora V-8 in the Aerotech, captured 47 world records, including the record for speed endurance in the Motorsports Hall of Fame of America. Recently, the Cadillac V-Series has entered motorsports racing.

Corporate structure and issues

Current members of the board of directors of General Motors are: Percy Barnevik, Erskine Bowles, John Bryan, Armando Codina, George Fisher, Karen Katen, Kent Kresa, Ellen Kullman, Philip Laskawy, Jerome York, Eckhard Pfeiffer, and Rick Wagoner (chairman). York was elected to the board on February 6, 2006 to represent Kirk Kerkorian, as E. Stanley O'Neal stepped down.

Rick Wagoner is also the chief executive officer of the company (since June 1, 2000), succeeding John F. Smith, Jr.

Presidents of General Motors

George E. Daniels Sept. 22, 1908 - Oct. 20, 1908

William M. Eaton Oct. 20, 1908 - Nov. 23, 1910

James J. Storrow Nov. 23, 1910 - Jan. 26, 1911

Thomas Neal Jan. 26, 1911 - Nov. 19, 1912

Charles W. Nash Nov. 19, 1912 - June 1, 1916

William C. Durant June 1, 1916 - Nov. 30, 1920

Pierre S. du Pont Nov. 30, 1920 - May 10, 1923

Alfred P. Sloan, Jr. May 10, 1923 - May 3, 1937

William S. Knudsen May 3, 1937 - Sept. 3, 1940

Charles E. Wilson Jan. 6, 1941 - Jan. 26, 1953

Harlow H. Curtice Feb. 2, 1953 - Aug. 31, 1958

John F. Gordon Sept. 1, 1958 - May 31, 1965

James M. Roche June 1, 1965 - Oct. 31, 1967

Edward N. Cole Nov. 1, 1967 - Sept. 30, 1974

Elliott M. Estes Oct. 1, 1974 - Jan. 31, 1981

F. James McDonald Feb. 1, 1981 - Aug. 31, 1987

Robert C. Stempel Sept. 1, 1987 - July 31, 1990

Lloyd E. Reuss Aug. 1, 1990 - April 6, 1992

John F. Smith, Jr. April 6, 1992 - Oct. 5, 1998

G. Richard Wagoner, Jr. Oct. 5, 1998 - April 30, 2003

Environmental and social policies

General Motors was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine. General Motors has been a world leader in philanthropy. For example, GM has given billions of dollars in computers to colleges of Engineering through its PACE Awards program. General Motors has promoted its clean burning Flex Fuel vehilces which can run on either E-85 (ethanol) or gasoline. GM has more vehicles that lead in their class in fuel economy than any other automaker, including large vehicles as exemplified in its redesigned SUVs in 2006.

Alternative vehicles

General Motors has long worked on alternative-technology vehicles, and has recently led the industry with clean burning Flex Fuel vehicles that can run on eith E-85 (ethanol) or gasoline. The company was the first to use turbochargers and was an early proponent of V6 engines in the 1960s, but quickly lost interest as the muscle car race took hold. They demonstrated [1] gas turbine vehicles powered by kerosene, an area of interest throughout the industry in the late 1950s, but despite extensive thermal recycling (developed by Chrysler) the fuel consumption was too high and starting torque too low for everyday use. They were also an early licensee of Wankel engine technology, even developing the Chevrolet Monza around the powerplant, but abandoned the alternative engine configuration in view of the 1973 oil crisis. In the 1970s and 1980s, GM pushed Diesel engines and cylinder deactivation technologies to disastrous results due to poor durability in the Oldsmobile diesels (this was a modified gasoline engine) and drivability issues in the Cadillac 4-6-8 variable cylinder engines.

In 1996, GM introduced the EV1, the first modern mass-produced electric car, which was available by lease only. Despite the positive publicity generated by this vehicle, and a long waiting list for the cars, the company cancelled the program after only a tiny production run, reportedly due to a "lack of consumer interest".

Hybrid initiative

GM delivered the first commercial hybrid vehicle and was early innovator in hybrid vehicle development, building Diesel-electric trains since the 1930s and buses since the 1990s (but without stored energy recovery). In May 2004, GM delivered the world's first full sized hybrid pickups, and introduced a hybrid passenger car. In 2005, the new Opel Astra Diesel Hybrid appears. The 2006 Saturn VUE Green Line will be the first hybrid passenger vehicle from GM, but it too is a mild design. GM has hinted at new hybrid technologies to be employed that will be optimized for higher speeds such as are encountered in freeway driving.

Hydrogen initiative

GM has extensively touted its research and prototype development of hydrogen powered vehicles, to be produced at some unspecified future time and using a support infrastructure yet to be built. The economic feasibility of the technically challenging hydrogen car, and the low-cost production of hydrogen to fuel it. is controversial, particularly when compared to the hybrid vehicles already produced by competitors.

Marketing

Each of GM's automotive divisions were once each targeted to specific market segments and, despite some shared components, each distinguished itself from its stablemates with unique styling and (to some extent) technology. The shared components and common corporate management created substantial economies of scale, while the distinctions between the divisions created an orderly upgrade path, with an entry-level buyer starting out with a practical and economical Chevrolet and, (assuming progressive prosperity of the buyer), moving through offerings of the several divisions until the purchase of a Cadillac. The divisions were not competing with each other as much as passing along the same customer, who would thus always be buying a GM product, with the profits flowing to this single corporation.

The postwar industry became enamored with the concept of "planned obsolescence", implemented by both technical and styling innovations, with a three year product cycle typical within the industry. In this cycle, a new basic body shell is introduced and then modified for the next two years by minor styling changes. GM, Ford, and Chrysler competed vigorously in this new environment.

By 1958, the divisional distinctions began to blur, with the availability of high-performance engines in Chevrolets and Pontiacs, and the introduction of higher trim models such as the Chevrolet Impala and Pontiac Bonneville that were priced in line with some of Oldsmobile and Buick's offerings. By the time that Pontiac, Oldsmobile and Buick introduced similarly styled and priced compact models for 1961, the old "step-up" structure between the divisions was nearly over.

By the mid 1960s, most of GM's vehicles were built on a few common platforms and in the 1970s, began to use nearly identical body panel stampings, differing only in internal and external trim items. This was seen especially in the compact passenger vehicles offered by the divisions. Nonetheless, the 1960-75 period was perhaps the greatest in GM's history, as it eventually held slightly over 50% of the U.S. market.

The subcompact Chevrolet Vega, introduced for the 1971 model year damaged GM's reputation more than perhaps any other vehicle in its history. Plagued by rust problems and an aluminum engine that was prone to failure at low mileage, the car was not designed and built to the standards consumers expected from GM.

By the 1980s, GM frequently "rebadged" one division's successful vehicle into several models across the divisions, all positioned close to one another in the market place. Thus, a new GM model's main competition might be another model spawned off the same platform. This led to so-called market "cannibalization", where GM's respective divisions spent time stealing sales from one another, while other more co-ordinated efforts (notably from the Japanese manufacturers) were allowed to increase their market penetration. For instance, the company's GMT360 mid-sized light truck platform has, since its inception in 2002, spawned the basic Chevrolet Trailblazer, an extended version of the Trailblazer, the Oldsmobile Bravada, the GMC Envoy, the Envoy XUV (an extended Envoy with a reconfigurable tailgate) and later, the Isuzu Ascender, Buick Rainier, and, to a lesser extent, the Saab 9-7X. Though each model had a more or less unique mission, without custom engine choices or radically different suspension settings and trim choices, the cars can hardly be told apart.

The fuel crisis in the 1970s and the shift to unleaded fuels changed the plans of automakers. Eventually vehicles would have to be equipped with knock sensors due to less combustive unleaded fuel. Some smaller automakers could not afford the changeover.

During the 1980s, more changes had to made. Planning ahead, GM had downsized its cars; however, the American public still preferred the larger sedans. As car makers offered smaller cars, consumers began shifting their purchases to SUV's. In the 1980s foreign auto makers promoted the perception that their smaller cars were of better quality. In 1989 GM pledged $5 billion to create Saturn, a quality small car. GM had initially invested about $3 billion to create Saturn. Foreign automakers responded with marketing campaigns claiming better fit and finish, quality, and durability.

An independent 1987 study conducted by Seton Hall University Professor Amar Dev Amar cast doubt on these claims, concluding that vehicles produced by U.S. automakers had significantly lower highway break down ratios than those of either Japanese or European automakers. Oldsmobile had the lowest breakdown ratio in the study. Japanese vehicles showed a 25% higher rate of breakdown than U.S. domestics, European vehicles showed a 70% higher rate of breakdown. The study compared vehicle registrations by make to actual breakdowns rates. Breakdowns for flat tires or running out of gas were not used. GM cited the study in commercials to counter its critics.

The Oldsmobile Aurora V-8 (a 4.0 version similar to Cadillac Northstar) and the Cadillac Northstar System V-8 were introduced in the 1990s. The Aurora V-8 would go on to dominate Indy racing in the small V-8 class throughout the 1990s beating the foreign competition in nearly every race. An unmodified Aurora V-8 would go on to win 47 world records including the record for speed endurance once held by Mercedes.

As more cars employed variable valve timing, GM would also begin to incorporate variable valve timing systems into their engine designs.

In the late 1990s, the U.S. economy was on the rise and GM and Ford gained market share producing enormous profits. From 2000 to 2001, the Federal Reserve, in a move to quell the stock market, made twelve successive interest rate increases. Following the September 11, 2001 attacks, a severe stock market decline precipited a pension and benefit fund crisis across the U.S. economy affecting many U.S. companies including GM, Ford, and DaimlerChrysler.

GM began its Keep America Rolling campaign, which boosted sales and helped the U.S. economy as other auto makers followed suit. The U.S. automakers saw gross margins deteriorate.

Ironically, GM's turnaround plan had aleady begun in 2002 with its new Cadillac line-up already in the works. One of GM's most successful marketing campaigns to date, the movie sequel Matrix Reloaded featured the new Cadillac CTS designed by Kip Wasenko. GM had to use the CTS prototype for filming, since the production model was not yet ready.

In 2004, GM redirected resources from the development of new sedans to an accelerated refurbishment of their light trucks and SUVs for introduction as 2007 models in early 2006. Shortly after this decision, fuel prices increased by over 50% and this in turn affected both the trade-in value of used vehicles and the perceived desirability of new offerings in these market segments. The current marketing plan is currently to extensively tout these revised vehicles as offering the best fuel economies in their class (of vehicle). GM's hybrid trucks have projected mileage improvements of 25%. GM's new line-up of SUV's provide more power and better fuel economy in their respective class than the foreign competition.

In the summer of 2005 GM announced that effective immediately, its corporate chrome emblem "Mark of Excellence" will begin appearing on all recently introduced and all-new 2006 model vehicles produced and sold in North America. The move is seen as an attempt by GM to link its name and vehicle brands more closely. The company's vehicle brands include Chevrolet, Pontiac, Buick, GMC, Cadillac, Saab, Hummer and Saturn.

GM promoted sales through an employee discount to all buyers. Marketed as the lowest possible price, GM cleared an inventory buildup of 2005 models to make way for its 2006 lineup. While the promotion was a temporary shot in the arm for sales, it did not help the company's bottom line. Thus, GM has begun a renewed emphasis on product features in its ads, not just price.

Economics

As is the case with the two other U.S. automobile manufacturers, international exchange rates tend to favor Japanese and Korean competitors. Japan and China were accused of manipulating exhange rates to gain a market advantage through purchases of U.S. Treasuries after the September 11, 2001 attacks in violation of Article IV of the International Monetary Fund Accords in hearings before the U.S. Senate Committee on Banking, Housing, and Urban Affairs May 1, 2002 by economist and former Ambassador Ernest Preeg on behalf of American manufacturers. as the U.S. trade deficit has soared. The expected future entry of China into the U.S. automotive market is likely to be advantaged by unrealistic currency exchange ratios. Although some commentators have claimed that European manufactures are somewhat disadvantaged by over-regulation, Germany places market share limits on Japanese imports, controlling Japan's ability to manipulate the market. Thus, Germany's automakers have continued to gain global market share, (as evidenced by the turnaround of Chrysler's fortunes after it was purchased by Daimler-Benz in 1998). With health care and benefits paid by their respective governments, foreign manufacturers have been able to create the perception that their products are "American" made through the use of transplants paying lower wages. Such transplants are advantaged over GM and Ford through the employment of a younger, less skilled, non-union workforce, This phenomenon has caused U.S. auto companies to gradually move production to Canada, where the government pays for health care. The Canadian single payer health care plan saves automakers $1500 per vehicle produced compared to the cost for health care in the United States.

In March 2005, the Government of Canada provided C$200 million in incentives to General Motors for its Ontario plants, and last fall it provided C$100 million to Ford Motor Co. to expand production and provide jobs, according to Jim Harris. Similar incentives were promised to non-North American auto companies like Toyota, Premier Dalton McGuinty said the money the province and Ottawa are pledging for the project is well-spent. His government has committed C$400 million, including the latest Toyota package of C$125 million, to the province's automobile sector, which helped finance $5 billion worth of industry projects.

For the first time, in 2004 the total number of cars produced by all makers in Ontario exceeded those produced in Michigan.

GM in China

General Motors is the top-selling foreign auto maker in China, with a 12.5% market there. The Buick brand is especially strong, led by the Buick Excelle subcompact. Cadillac initiated sales in China in 2004, starting with imports. GM pushed the Chevrolet brand there in 2005 as well, transferring the formerly-Buick Sail to that marque. The company manufactures most of its China-market vehicles locally, through its Shanghai GM joint venture. The SAIC-GM-Wuling Automobile joint-venture is also successful selling trucks and vans under the Wuling marque.

Corporate restructuring

After gaining market share in the late 1990s and making enormous profits General Motors stock soared to over $80 a share. However, in 2000, twelve successive interest rate hikes by the Federal Reserve to quell the stock market, and a severe stock market decline following the September 11, 2001 attacks, caused a pension and benefit funds crisis at General Motors and many other American companies. General Motor's rising retiree health care costs and Other Post Employment Benefit (OPEB) fund deficit prompted the company to enact a broad restucturing plan. Although GM had already taken action to fully fund its pension plan, its OPEB fund became an issue for its corporate bond ratings. GM had expressed its disagreement with the bond ratings; moveover, GM's benefit funds were performing at higher than expected rates of return. Then, following a $10.6 bllion loss in 2005, GM acted quickly to implement its restructing plan. For the first quarter of 2006 GM earned $400 million, signaling a turnaround had already begun even though many aspects of the restructing plan had not yet taken effect.

In February 2005, GM successfully bought itself out of a put option with Fiat for $2 billion USD (€1.55 billion). In 2000, GM had sold a 6% stake to Fiat in return for a 20% share in the Italian automaker. As part of the deal, GM granted Fiat a put option which, if exercised between January 2004 and July 2009, could have forced GM to buy Fiat. GM had agreed to the put option at the time, perhaps to keep it from being acquired by another automaker such as DaimlerChrysler competing with GM's Opel and Vauxhall marques. The relationship suffered, and Fiat had failed to improve. In 2003, Fiat recapitalised, reducing GM's stake to 10%.

In February 2006, GM slashed its annual dividend from 2.00 to $1.00 per share. The reduction saved $565 million a year.

In March 2006, GM divested 92.36 million shares (reducing their stake from 20% to 3%) of Japanese manufacturer Suzuki, in order to raise $2.3 billion. GM originally invested in Suzuki in the early 1980s.

On March 23, a private equity consortium including KKR, Goldman Sachs Capital, and Five Mile Capital purchased $8.8 billion, or 78% of GMAC, GM's commercial mortgage arm. The new entity, in which GMAC will own a 21% stake, will be known as Capmark Financial Group.

On April 3, 2006, GM announced that it would sell 51% of GMAC as a whole to a consortium led by Cerberus Capital Management, raising $14 billion over 3 years. Investors also include Citigroup's private equity arm and Aozora Bank of Japan. The group will pay GM $7.4 billion in cash at closing. GM will retain approximately $20 billion in automobile financing worth an estimated $4 billion over three years.

GM sold its 8% stake in Isuzu on April 11, 2006, to raise an additional $300 million.

On June 26, 2006, 35,000 GM workers had agreed to company buyouts, well over the company goal significantly reducing GM's operating costs and future liabilty.

On June 26, 2006, 12,600 workers from Delphi, a key supplier to GM, agreed to buyouts and an early retirement plan offered by GM in order to avoid a strike, after a judge agreed to cancel Delphi's union contracts. 5,000 Delphi workers were allowed to flow to GM.

GM continues to open new plants and modernize existing plants which tends to go unreported. With improving sales, GM could modify its plans. Plants scheduled to close under the planned GM restructing include (source: General Motors Corporation):

Plants	Location	Closing	Role	# Employees
Scarborough Assembly van plant	Ontario	1993	Van assembly	2,700
Moraine Assembly (3rd shift)	Ohio	2006	Mid-size SUV assembly	4,165
Oklahoma City Assembly	Oklahoma	Early 2006	Mid-size trucks and SUV assembly	2,734
Lansing Craft Centre	Michigan	Mid-2006	Chevrolet SSR roadster assembly	398
Oshawa Car Assembly No. 1 (3rd shift)	Ontario	Mid-2006	Mid-size sedan assembly	3,600
Spring Hill Manufacturing Line 1	Tennessee	March 2007	Saturn Ion sedan and coupe assembly	5,776
Doraville Assembly	Georgia	2008	Minivan assembly	3,076
Lansing Metal Center	Michigan	2006	Metal fabricating	1,398
Portland Distribution Center	Oregon	2006	Parts distribution	95
Saint Louis Distribution Center	Missouri	2006	Parts distribution	182
Pittsburgh Metal	Pennsylvania	2007	Metal fabricating	613
Ypsilanti Processing Center	Michigan	2007	Parts processing	278
St. Catharines Engine	Ontario	2008	Engine/Transmission parts	1,699
Flint North 3800	Michigan	2008	Engines	2,677

Controversy over electric vehicles

File:Evcrushed.jpg

EV1s crushed by General Motors shortly after production

On June 30, 2006 a documentary about the demise of the EV1 and other electric vehicles entitled "Who Killed the Electric Car?" debuted in theatres across America, sparking criticism of the motivation behind the cancellation of their electric car program.

Consumer advocates, activists, commentators, journalists, and documentary makers claim GM had deliberately sabotaged their company's zero emission electric vehicle efforts through several methods: failing to market, failing to produce appropriate vehicles, failing to satisfy demand, and using lease-only programs with prohibitions against end of lease purchase.[2] [3] [4] [5] [6]

The process of obtaining GM's first electric vehicle the EV1 was difficult. The vehicle could not be purchased outright. Instead, General Motors offered a closed-end lease for three years, with no renewal or residual purchase options. The EV1 was only available from specialist Saturn dealerships, and only in California.[7] Before reviewing leasing options, a potential lessee would be taken through a 'pre-qualification' process in order to learn how the EV1 was different from other vehicles. Next came a waiting list with no scheduled delivery date.[8]

Several weeks before the debut of the movie, the Smithsonian Institution announced that its EV1 display was being permanently removed and the EV1 car put into storage. GM is a major financial contributor to the museum, and both parties denied that this fact contributed to the removal of the display.[9]

Criticism

It should be noted however that GM was not the only automaker to lease vehicles and destroy them. However General Motors is the only automaker that is connected with this controversy, despite the fact that any automaker could produce and sell an electric vehicle. It should also be noted that this is an independent film that has flopped financially at the box office. As of September 1st 2006 the movie had run a total of 10 weeks and earned $1,422,645. The premise of the film is that General Motors manipulated the market by discontinuing production of the electric automobile by pretending that the consumer didn't demand there vehicles. Yet one could also argue that the demand of the consumer not paying to see this film makes General Motor's argument more credible. After all, if consumers really would have wanted the vehicles, they would have paid to see this film.

Further reading

• Barabba, Vincent P. Surviving Transformation: Lessons from GM's Surprising Turnaround (2004)
• Chandler, Alfred D., Jr., ed. Giant Enterprise: Ford, General Motors, and the Automobile Industry 1964.
• Cray, Ed. Chrome Colossus: General Motors and Its Times. 1980.
• Farber, David. Sloan Rules: Alfred P. Sloan and the Triumph of General Motors U of Chicago Press 2002
• Gustin, Lawrence R. Billy Durant: Creator of General Motors , 1973.
• Halberstam, David. The Reckoning (1986) detailed reporting on the crises of 1973-mid 1980s
• Keller, Maryann. Rude Awakening: The Rise, Fall, and Struggle for Recovery of General Motors, 1989.
• Leslie, Stuart W. Boss Kettering: Wizard of General Motors Columbia University Press, 1983.
• Maxton, Graeme P. and John Wormald, Time for a Model Change: Re-engineering the Global Automotive Industry (2004)
• Maynard, Micheline. The End of Detroit: How the Big Three Lost Their Grip on the American Car Market (2003)
• Rae, John B. The American Automobile: A Brief History. University of Chicago Press, 1965.
• Sloan, Alfred P., Jr. My Years with General Motors, 1963.
• Weisberger, Bernard A. The Dream Maker: William C. Durant, Founder of General Motors , 1979

See also

• Alfred P. Sloan
• Buick
• Cadillac
• Chevrolet
• DuPont
• EV-1
• Fisher Body
• General Motors Acceptance Corporation
• General Motors Canada
• GMC
• GM Europe
• Hummer
• Oldsmobile
• Pontiac
• List of GM platforms
• List of GM engines
• List of GM factories
• List of GM VIN codes
• GM vehicles by brand
• EPA 2004 fuel economy report (General Motors)
• Tribrid
• General Motors streetcar conspiracy

External links

• Official Website
• Official Website from GM Europe
• GM's corporate blogs: Fastlane and FYI
• GMability, GM's corporate responsibility site
• GM's K-12 education site
• Corporate history
• GM picture galleries
• GM 2006 VIN chart.
• GM Future Vehicles and News Site