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General Motors Corp.


About General Motors Corp.

General Motors is an American car manufacturer.

GM was founded in 1908. The company ruled the car industry for over 50 years. The company's G.M. Saturn plant in Spring Hill, just outside Nashville in 1985 was opened by Gov. Lamar Alexander of Tennessee.

The company announced the EV1 electric vehicle but in 1999 dropped it in just three years of launch.

General Motors, in December 08 said its its new engines factory that is expected to make engines for the Chevrolet Volt electric car will be delayed so as to conserve cash during these tough times.

In May 2009, the company informed 1100 US dealers that their franchises will be terminated late next year. Dealers to get terminations will be 'underperforming', small sales or dealers who operate in markets in which GM is no longer competitive. The announcement came just a day after Chrysler LLC made a similar announcement. During the month, rumours are out that GM will go for bankruptcy filing. US stocks opened their May 27, 2009 trader at slightly lower following the news. The company paid 90,000 US Employees their pay cheques three days early in a bid to reassure them that their pay wont be affected in the midst of its bankrupsy plans.

Bankruptcy Protection

On June 1, 2009, GM filed for Bankruptcy Protection in New York making it the fourth largest and the largest for an industrial company in the history of US. Its reorganization plan would rely on up to $30 billion of additional financial assistance from the Treasury Department. The Obama Administration has considered shrinking the company to a size that the federal government can get a majority ownership stake. The company announced it will close 14 plants, 3 parts centres and about 5000 salaried jobs by the end of 2011. General Motors North America Manufacturing Vice President Tim Lee, speaking over conference call, is reported to have told that the cut in employees will be in accordance and terms of United Auto Workers agreement.

U.S. Judge Robert Gerber, the bankruptcy judge looking into the GM bankruptcy case, in his 95 page report released in July 09 gave permission to the sale of GM bulk sale of its assets so that the automobile maker can quickly emerge from bankruptcy protection.

Hummer

Just a day after filing its bankruptcy protection papers, GM said it tentatively agreed to sell its Hummer brand. Declining to name the buyer, GM said the sale will help save about 3000 jobs. Finally on October 11, 09, it is revelaed that a deal is reached to sell the Hummer brand to Sichuan Tengzhong Heavy IndustrialMachinery. The deal will face regulatory review in US, China.

Saab Automobile

On June 16, 2009, GM announced it reached a deal to sell Saab Automobile to Swedish sports car maker Koenigsegg. In November 09, the deal was put-off after it was unable to make a financial agreement with the Swedish Government. GM on the other hand continued to have its four German factories open and running as part of its European operations restructuring.

In early July 09, a German newspaper reported that GM Europe President Carl-Peter Forster said he expects to sell GM German unit of Opel to Canadian auto parts supplier Magna.

General Motors Corp. in recent news

General Motors Corp. in News

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