Aditya Srivastav

Roll No. RS1009B17

Reg. No. 1100946

CONTENT
* General Motors
* Company Overview
* Structure
* History
* Region of failure of GM
* Philanthropy
* Politics
* Environmental issues
Type Limited liability company
Industry Automotive
Founded 1908 General Motors
Founder(s) William C. Durant
Renaissance Center The General Motors Company, also
Headquarters
Downtown Detroit, Michigan, USA known as GM, is a United States-
based automaker with its
Area served Worldwide
headquarters in Detroit, Michigan.
Edward Whitacre The company manufactures cars and
(Chairman) trucks in 34 countries, recently
Key people employed 244,500 people around the
Daniel Akerson world, and sells and services vehicles
(CEO) in some 140 countries.By sales, GM
Products Automobiles ranked as the largest U.S. automaker
and the world's second-largest for
-United States Department of the Treasury 2008. having the third-highest 2008
(61%) global revenues among automakers
-United Auto Workers Union Voluntary on the Fortune Global 500
Employee Beneficiary Association (17.5%) On June 1, 2009, the company filed
Owner(s) -Canada Development Investment for a Chapter 11 reorganization,
Corporation (7.9%) which was completed on July 10 of
the same year, and it was thereafter
-Government of Ontario (3.8%)
reorganized once a new entity
-Bond holders of Motors Liquidation acquired the most valuable assets.
Company (9.8%) GM is now temporarily majority
owned by the United States Treasury
Employees 204,000 (2009)
and, to a smaller extent, the Canada
Chevrolet Development Investment Corporation
Buick and the government of Ontario, with
Divisions the U.S. government investing a total
Cadillac of US$57.6 billion under the
GMC Troubled Asset Relief Program.
Vauxhall
The company plans to focus its
AC Delco business on its four core North
General Motors Canada American brands: Chevrolet,
Buick, GMC, and Cadillac. In
General Motors do Brasil
Europe, following a period of
General Motors India negotiation to sell a majority
General Motors Ventures stake of the German brand Opel,
the company decided to retain
Global Hybrid Cooperation full ownership of these
Subsidiaries
General Motors South Africa operations. GM sold Saab
Automobile to Spyker Cars NV,
GM-AvtoVAZ and closed its doors to:
GM Daewoo (70.1%) Hummer, Pontiac, and Saturn
GM Holden Ltd
GM Performance Division
OnStar
Opel
Website GM.com
brands; the latter two remaining under the old GM, now known as Motors
Liquidation Company.

Company overview

The General Motors GMT800 truck assembly line. (2006)

In 2009, GM employed approximately 244,500 people around the world. The Renaissance
Center, located in Detroit, Michigan, United States, is GM's global headquarters. In 2008,
GM sold 8.35 million cars and trucks globally. GM is the majority shareholder in GM
Daewoo Auto & Technology Co. of South Korea and has collaborations with Shanghai
Automotive Industry Corporation of China, AvtoVAZ of Russia, and most recently,
UzAvtoSanoat of Uzbekistan. GM has had collaborations with various automakers including
Fiat (see GM/Fiat Premium platform) and the Ford Motor Company. GM retains various
stakes in different automakers. GM's best success internationally has been its performance in
China, where GM's sales rose 66.9 percent in 2009, selling 1,830,000 vehicles and
accounting for 13.4 percent of the market.

GM worldwide vehicle sales by Top-four markets/regions by vehicle

country 2008 sales in 2008 (thousands)
(thousands) Rank Market
Vehicle
Rank Market in Market/Region share
Vehicle sales
in Country share GM (%)
sales
GM (%) 1 North America 3,552 21.9%
United
1 2,981 22.1% 2 China 1,095 12.0%
States 3 European Union 905 12.3%
2 China 1,095 12.0% 4 South America 815 20.8%
3 Brazil 549 19.5%
United
4 384 15.4%
Kingdom
5 Canada 359 21.4%
6 Russia 338 11.1%
7 Germany 300 8.8%
8 Mexico 212 19.8%
9 Australia 133 13.1%
South
10 117 9.7%
Korea
11 France 114 4.4%
12 Spain 107 7.8%
13 Argentina 95 15.5%
14 Venezuela 91 33.3%
15 Colombia 80 36.3%
16 India 66 3.3%

Structure
GM is structured into the following segments:

Number of employees
Segment
March 2010
GMNA (GM North America) 103,000
GMIO (GM International Operations) 57,000
Adam Opel GmbH (Europe) 47,000
Total number of employees 207,000

Management

The Renaissance Center in Detroit, GM's world headquarters.

On July 23, 2009, GM announced its new Board of Directors: Dan Akerson, David
Bonderman, Robert D. Krebs, Patricia F. Russo and Ed Whitacre (GM Chairman and Interim
Chief Executive Officer). Board members who are not GM employees will be paid
US$200,000 annually.

As of December 1, 2009, The General Motors Board of Directors accepted Frederick

Henderson's resignation. In January 2010, chairman Whitacre was appointed permanent chief
executive officer after previously serving in an interim capacity.

On December 4, 2009, GM announced leadership changes in a press release.

• Edward Whitacre, Jr. - Chairman of the Board of the Directors and Chief Executive
Officer
• Robert A. Lutz - Vice Chairman, advisor on design and global product development
• Chris Liddell - Vice Chairman and Chief Financial Officer
• Thomas G. Stephens - Vice Chairman, Global Product Operations
• Mark Reuss - President, GM North America
• David N. Reilly - President, GM Europe/Adam Opel GmbH
• Timothy E. Lee - President, GM International Operations (Asia-Pacific, Latin
America, Africa, and Middle East)
• Ray Young - vice president, International Operations
• Edward T. Welburn - Global Vice President of General Motors Design, current and
only the sixth head designer.

For additional senior management see GM Senior Leadership Group

Whitacre was very active in GM's advertising. He appeared in an advertisement touting the
company's 60-day, money-back guarantee soon after the company exited bankruptcy and a
television advertisement that boasted the repayment of $6.7 billion loan from government
ahead of schedule, which caused a controversy. On August 12, 2010 GM announced that
Whitacre would relinquish the CEO position effective September 1, 2010 and that of
Chairman of the Board at the end of the year, to be replaced in those functions by current
board member Dan Akerson.

GM is a conglomerate.
History
The company was founded on September 16, 1908, in Flint, Michigan, as a holding company
for Buick, then controlled by William C. Durant. GM's co-founder was Charles Stewart Mott,
whose carriage company was merged into Buick prior to GM's creation. Over the years Mott
became the largest single stockholder in GM and spent his life with his Mott Foundation,
whose benefit was shone on the city of Flint, his adopted home. It acquired Oldsmobile later
that year. In 1909, Durant brought in Cadillac, Elmore, Oakland and several others. Also in
1909, GM acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid
Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. Durant lost
control of GM in 1910 to a bankers' trust, because of the large amount of debt taken on in its
acquisitions coupled with a collapse in new vehicle sales. The next year, Durant started the
Chevrolet Motor Car Company and through this he secretly purchased a controlling interest
in GM. Durant took back control of the company after one of the most dramatic proxy wars
in American business history. Durant then reorganized General Motors Company into
General Motors Corporation. Shortly after, he again lost control, this time for good, after the
new vehicle market collapsed. Alfred P. Sloan was picked to take charge of the corporation
and led it to its post-war global dominance. This unprecedented growth of GM would last
into the early 1980s when it employed 349,000 workers and operated 150 assembly plants.

GM previously led in global sales for 77 consecutive years (1931 to 2008), longer than any
other automaker.On August 18, 2010 General Motors filed its long-awaited IPO prospectus
with the SEC, officially setting the wheels in motion for an IPO later this year.

Region of failure of GM

On July 10, 2009, a new entity, NGMCO Inc. purchased the ongoing operations and
trademarks from General Motors Corporation. The purchasing company, in turn, changed its
name from NGMCO Inc. to General Motors Company, marking the emergence of a new
operation from the "pre-packaged" Chapter 11 reorganization.Under the reorganization
process, termed a 363 sale (for Section 363 which is located in Title 11, Chapter 3,
Subchapter IV of the United States Code, a part of the Bankruptcy Code), the purchaser of
the assets of a company in bankruptcy proceedings is able to obtain approval for the purchase
from the court prior to the submission of a re-organization plan, free of liens and other
claims. It is used in most Chapter 11 cases that involve a sale of property or other assets. This
process is typical of large organizations with complex branding and intellectual property
rights issues upon exiting bankruptcy. The new company plans to issue an initial public
offering (IPO) of stock in 2010.

GM's remaining pre-petition creditors' claims are paid from the remaining assets of Motors
Liquidation Company, the new name of the former General Motors Corporation, although the
directors of that company believe its debts far outweigh its assets. This means that while the
former GM's bondholders may recover a small portion of their investment, former GM
shareholders (now shareholders of Motors Liquidation Company) will likely not receive
anything.
Also on July 10, 2009, GM announced plans to trim its U.S. workforce by 20,000 employees
as part of its reorganization by the end of 2009 due to economic conditions.

The following table is a comparison (estimates) of the new GM and the old GM:

Old GM (before July 10, 2009) New GM (after July 10, 2009)
Vauxhall, Pontiac, Chevrolet,
Cadillac, GMDaewoo (48.2%), Vauxhall, GMDaewoo (70.1%), Chevrolet,
Brands
Hummer, GMC, Saturn, Holden, Cadillac, GMC, Holden, Buick, Opel
Saab, Buick, Opel
U.S.
5,900 5,000
Dealerships
U.S. Treasury, Canada Development
Common shareholders, Investment Corporation, Government of
Ownership
bondholders and secured creditors Ontario, Old GM bondholders, and the
United Auto Workers sponsored VEBA
47 U.S. Plants 34
US$94.7 billion Debt US$17 billion
U.S.
91,000 68,500
employees

Philanthropy
Since 1996, General Motors has been the exclusive source of funding for Safe Kids USA's
"Safe Kids Buckle Up" program, a national initiative to ensure child automobile safety
through education and inspection. Through 2002, the Pace Awards program led by GM, EDS,
and SUN Microsystems, gave over $1.2 billion of in-kind contributions which includes
computers to over 18 universities to support engineering education. In 2009, the GM led
group has helped the Pace Awards program worldwide.General Motors is a leading
contributor to charity. In 2004, GM gave $51,200,000 in cash contributions and $17,200,000
in-kind donations to charitable causes.

Politics
In the 2008 election cycle, General Motors contributed $802,414, with 52 percent of that
amount going to the Democrats and 48 percent to the Republicans. GM's Saturn division put
up a display at the 2009 Detroit Auto Show congratulating Barack Obama on his election as
the first African-American president of the United States.

Environmental issues
In the middle of 1999, the Environmental Protection Agency (EPA) removed 23,000 cubic
yards (18,000 m3) of contaminated sediments and soil from the General Motors site in
Massena, New York for disposal at a licensed facility in Utah. The amount contained
13,000 cubic yards (9,900 m3) of contaminated sediments dredged from the St. Lawrence
River. The sediments had been stored on the site since 1995. There was also 10,000 cubic
yards (7,600 m3) of contaminated sludge from the active wastewater treatment plant on the
General Motors property. The Political Economy Research Institute ranks GM 18th among
corporations emitting airborne pollutants in the United States. The ranking is based on the
emission quantity (8 million pounds in 2005) and toxicity.

In September 2006, the state of California filed suit against General Motors, Chrysler,
Nissan, Toyota, Honda, and Ford. The companies were accused of producing cars that
emitted over 289 million metric tons of carbon per year in the United States, accounting for
nearly 20 percent of carbon emissions in the United States and 30 percent of carbon
emissions in California. This lawsuit was dismissed by a judge in September 2007.