Professional Documents
Culture Documents
Genral Motors
Genral Motors
Ryan White
Brittany Thomason
Mitchell Stack
Cory Gregory
Jacob Western
Heather McMahon
Scott DeVore
Introduction
GM
Once Profitable , Now Near Bankruptcy…
GM shares @ $2.70
Down 89% from 52 wk high of $24.24 (April 30, 2008)
1. GM Present Strategy & Current Performance
Current Performance : Human Resources
OPPORTUNITY THREATS
•New Emerging Markets •Declining demand for light
•Increase in demand for Hybrids vehicles
•Increasing price of raw
materials
•Bankruptcy
GM Strengths
Asia, Latin America, Middle East, Africa
Markets
• 2007 GM increase its sales in Asian market from 1.3
million to 1.4 million sold, increasing revenue from
11.2 billion in 06 to 15.6 billion in 07.
GM Strengths cont.
The U.S. government would release GM, GoodGM and BadGM of the $13.4 Billion
in debt,
but as a trade-off take a 100% ownership in GoodGM upon reemergence.
Most of the money raised from the investment of the new company would likely go
to the
VEBA (Voluntary Employees' Beneficiary Association) fund for the UAW (United
Auto Workers).”
Good Vs. Bad GM
When or if the dividing of the GoodGM and
BadGM takes place certain assets and
liabilities:
such as retiree health care and nearly $28 billion
in bond debt
could stay in bankruptcy for an extended period
be liquidated or haggled over by creditors.
HUMMER
High price of the truck
Low MPGs
Low sales
Saturn
Was a unique car company.
Turn into a Chevy with different badges.
“As of February 17, 2009 that Saturn will
remain in operation through the end of the
planned lifecycle for all Saturn products
(2010-11). In the interim, should Saturn
retailers as a group or other investors
present a plan that would allow a spin off or
sale of Saturn Distribution Corporation, GM
would be open to any such possibilities.”
CEO Rick Wagoner.
Volt
The volt is a new kind of car for GM, it is
a hybrid car that you can plug in and
charge the batteries. With the batteries
charge the car can drive for 40 miles
without using any fuel.
Price too high
Can see the savings
Can see the savings
HOWEVER
Bankruptcy
GM can use chapter 11 Bankruptcy to
rewrite all of its labor contracts with the
UAW
Would be able to close plants and cut benefits
Could get rid of excess brands
Close down dealerships