Preview

General Motors/Opel, Recovery Plan for Europe. Gm Wants to Close the Opel Factory in

Powerful Essays
Open Document
Open Document
1800 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
General Motors/Opel, Recovery Plan for Europe. Gm Wants to Close the Opel Factory in
Established in 1908, General Motors, also known, as GM or GMC with it’s headquarters based in Detroit, is the world’s 2nd largest auto company in sales revenue behind Toyota which took the lead in 2006. General Motors reigned as the global leader in the automobile industry for the last 76 years, longer than any other automaker. Their business operates in 140 countries with an employment of approximately 212,000 people. Their European headquarters is based in Zurich, Switzerland. Also 2006, 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM, Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, and Vauxhall.
Although this company has been holding a recommendable reputation in motor vehicle industry, there are numerous challenges and opportunities that this company has been facing in the global market. General motors therefore has many subjects to handle in a global market, some being an advantage to the company while others challenge the company viability in the global platform. Some of these issues are globalization, finance, management, political business interference, competition and Social challenges. These subjects affect the company directly and indirectly hence being reflected in the company performance at the end of every financial year.
General Motors is a Multi-national Company and is therefore subject to the influence of several global factors among them culture, different financial systems, political differences and global competition. Regional politics have also affected general motors performance in the world market in major ways. It is widely known that GM cannot sell its products in some regions. In the fact that General Motors is closely associated with Americans (Christians), other regions that oppose Americans agenda, in a world platform, find it unnecessary to consume products from America. This political move is not economical and has effected GM`s performance. Opponents of the GM


Cited: "Our Company." Gm.com. N.p., n.d. Web. 03 Apr. 2013. "History & Heritage." Gm.com. N.p., n.d. Web. 03 Apr. 2013. Pleitgenin, Fred. "Opel Workers Strike after GM Abandons Sale." CNN. Cable News Network, 06 Nov. 2009. Web. 03 Apr. 2013. Henning, Dietmar. "GM 's Recovery Plan for Opel: Death by a Thousand Cuts -." Wsws.org. N.p., 25 Feb. 2010. Web. 03 Apr. 2013. "Opel to Shut Down Car Assembly at Bochum Germany Plant in 2016." Online posting. Http://www.spiegel.de. N.p., 10 Dec. 2012. Web. 03 Apr. 2013. Miller, J. "Labor Costs Aren 't the Same as Wages Earned." FactCheck. N.p., 11 Dec. 2008. Web. 03 Apr. 2013. Heller, Robert. "Business Structure:." Thinkingmanagers.com. N.p., 07 July 2008. Web. 03 Apr. 2013. McGhie, Tom. "The Driving Force behind the Survival of Vauxhall." The Mail on Sunday [London] 28 Mar. 2010: n. pag. Print.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Commentary On Why GM Matters By Rick Wagoner
    • 1197 Words
    • 5 Pages

    Commentary On Why GM Matters By Rick Wagoner

    Why GM Matters is a book written about the history of General Motors Company and the struggle they endured during the 2008 economic recession. The book is broken into three parts; the first part explains what went wrong with General Motors Company including the workers that would be affected if General Motors Company had to move their production to another country or if they had to close the doors on General Motors Company and let Toyota buy them out. The book also discusses in the first part, the person most people consider responsible for their struggle throughout the recession, Rick Wagoner. The author in the first part conducted many interviews with General Motors Company employees such as, works that worked in the production plant, workers that handled the finances, but most notably, Rick Wagoner. The majority of the first part is about the history of General Motors Company and the consequences that would occur if General Motors was bought out by Toyota.…

    • 1197 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    MKT421 Wk1 Favorite Brand Paper
    • 972 Words
    • 3 Pages

    MKT421 Wk1 Favorite Brand Paper

    Although the United States has one of the largest automotive markets in the world and is home to 13 auto manufacturers. I am very passionate towards General Motors (GM). General “Motors was founded by William “Billy” Durant on September 16, 1908. Durant had become a leading manufacturer of horse-drawn vehicles in Flint, MI before making his foray into the automobile industry. At its inception GM held only the Buick Motor Company, but in a matter of years would acquire more than 20 companies including Oldsmobile, Cadillac, and Oakland, today known as Pontiac”, (GM, 2014) “General Motors has played a pivotal role in the global auto industry for more than 100 years. From the first Buick horseless carriages to technological marvels like the Chevrolet Volt, our products and innovations have always excelled at putting the world on wheels” (GM, 2014). I think one of the reasons I am partial to GM is that my family has always owned them. I can remember my father telling me, “Son there’s nothing like American steel and there certainly isn’t anything better than an American made automotive.” On certain occasions my father would take me to the dealership and seeing how the Service staff provided high level of prestige service just because he owned a 1972 GMC Sierra 1500. Like days of old, GMC is the flagship series line of GM vehicles, a symbol that a person had money and is…

    • 972 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Will GM S Strategic Plan Lead To Future Success
    • 1039 Words
    • 3 Pages

    Will GM S Strategic Plan Lead To Future Success

    GM’s vision and main focus is to achieve a healthier margin and profit. Although this vision may not be very easy to attain, is a very realistic one. In spite of the fact that it seemed to be a “once-unthinkable” goal, GM reported its highest-ever net income of about $8 billion in 2011. This was a massive increase from the previous year’s net income of $4.7 billion, and was in accordance with its vision of achieving higher profit. A short while after that, GM also released figures of its global sales, which showed its reclaim of the ‘world's largest auto maker’ title from its rival, Toyota. Based on these facts, I…

    • 1039 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Rick Wagoner's Why GM Matters
    • 1184 Words
    • 5 Pages

    Rick Wagoner's Why GM Matters

    Why GM Matters is a book written about the history of General Motors Company and the struggle they endured during the 2008 economic recession. The book is broken in three parts; the first part explains what went wrong in General Motors Company including the workers that would be affected if General Motors Company had to move their production to another country or if they had to close the doors on General Motors Company and let Toyota buy them out. The book also discusses in the first part, the person most people consider responsible for their struggle throughout the recession, Rick Wagoner. The author in the first part conducted many interviews with General Motors Company employees such as, works that worked in the production plant, workers…

    • 1184 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Gm Research Paper
    • 2441 Words
    • 10 Pages

    Gm Research Paper

    General Motors Company (GM) is known as one of the world’s top automakers that do business in more than 157 countries. By providing quality vehicle security, and information services, GM is always listed as one of the best choices that customers from different ages and social classes tend to pick. But recently, due to poor management decision, the recession of 2008, and its inability to be flexible to change and the loss of market share to foreign competitors, GM filed for Chapter 11 reorganization Bankruptcy in 2009. But after the reorganization, the company is slowly getting back on track and recently has shown growth.…

    • 2441 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    Managaging Organizational Change
    • 2851 Words
    • 12 Pages

    Managaging Organizational Change

    Phillips, Matt (2010). “Ford VS. GM: Who’s the best in Detroit?” Retrieved May 3, 2012…

    • 2851 Words
    • 12 Pages
    Best Essays
    Read More
  • Powerful Essays

    Overview and Analysis of General Motors
    • 4953 Words
    • 20 Pages

    Overview and Analysis of General Motors

    "General Motors has no bad years, only good years and better years" (Sloan, 1972). This mantra established in 1950 by former GM president Harlow H. Curtice may have been true at one point, but is called into question today by many, including Wall Street.…

    • 4953 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Good Essays

    Benefits of FDI
    • 622 Words
    • 2 Pages

    Benefits of FDI

    As it is evident in the case “The Fate of Opel,” foreign firms such as GM will not always make decisions in the best interest of host countries. GM certainly did not make the best decisions regarding Opel and Germany. This is shown in the case when the German government loaned billions of Euros to Opel in protection against GM’s bankruptcy in 2009. Also, when…

    • 622 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    General Motors
    • 2359 Words
    • 10 Pages

    General Motors

    General Motors Company develops, produces, and markets cars, trucks, and parts worldwide. GM also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). The company was formerly known as NGMCO, Inc. and changed its name to General Motors Company in July 2009. General Motors Company is based in Detroit, Michigan (finance.yahoo.com).…

    • 2359 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    General Motors Diversification
    • 1202 Words
    • 5 Pages

    General Motors Diversification

    Across the globe, we are the leader in market share and vehicle sales, led by a diverse portfolio of brands sharing core platform efficiencies and connected by GM’s global reach.…

    • 1202 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    Chevrolet Internal and External Factors
    • 1537 Words
    • 7 Pages

    Chevrolet Internal and External Factors

    Enterprises are global all over the world. Companies need to involve themselves with international markets. In a global environment, income is rising and demand is increasing, leading organizations to focus on external factors as in international market exchange. General Motors has their Chevrolet model in many different parts of the world. They have experienced profit gains and profit losses. The use of going global with their products is taking a step further than keeping within their own country. Chevrolet was used to make decisions about GM 's overseas expansion (Wernle, 2011). With the technological change our society has encountered, it is expected for companies to provide a service anytime and anywhere. .GM seen that it was too expensive to make cars locally so they decided to buy companies like Vauxhall in…

    • 1537 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Internationalization of Toyota Motor Co.
    • 6809 Words
    • 28 Pages

    Internationalization of Toyota Motor Co.

    In 1998, Toyota, the number three carmaker in the world, sold 1,711 thousand vehicles in Japan through 309 dealers, and 2,930 thousand overseas through 170 distributors deploying about 5,400 outlets in 73 countries. So, Toyota’s sales network was already fairly globalized, the markets in the East European countries surely being fallow lands yet. As for its overseas production, Toyota had 40 companies among which 27 firms in 24 countries assembled 1,468 thousand vehicles, whereas Toyota produced in Japan 3,166 thousand of which 1,463 thousand were exported. Then, Toyota seems being on the way to globalize its production network at the end of 20th century. However,…

    • 6809 Words
    • 28 Pages
    Powerful Essays
    Read More
  • Good Essays

    Pest Analysis of Tata Motors
    • 762 Words
    • 4 Pages

    Pest Analysis of Tata Motors

    Operating in numerous countries across the world, Tata Motors functions with a global economic perspective while focusing on each individual market. Because Tata is in a rapid growth period, expanding or forming a joint venture in over five countries world-wide since 2004, a global approach enables Tata Motors to adapt and learn from the many different regions within the whole automotive industry. They have experience and resources from five continents across the globe, thus when any variable changes in the market they can gather information and resources from all over the world to address any issues. For instance, if the price of the aluminum required to make engine blocks goes up in Kenya, Tata has the option to get the aluminum from other suppliers in Europe or Asia who they would normally get from for production in Ukraine or Russia. Tata Motors also has to pay close attention to shifts in currency rates throughout the world.…

    • 762 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Geely Company Analysis
    • 2590 Words
    • 11 Pages

    Geely Company Analysis

    When globalization becomes a circumstance, many companies try to open oversea market. Here, we’d like to take a look at a Chinese private-own automobile company Geely. As china’s top car maker, Geely abstracted the world’s eyes recently. In 2004, Geely plans to export 5,000 vehicles to the Middle East, South America and North Africa after shipping 1,000 cars to Syria in the fourth quarter of 2003 at US$4,000-$6,000 each. This year, Geely wants to open US market. But with many strong competiters in car manufactory in US, with weak reputation around chinese product, How does Geely find an appropriate approach to develop its business? This paper will try to find the answer.…

    • 2590 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    General Electric Assignment
    • 1678 Words
    • 5 Pages

    General Electric Assignment

    General Electric is one the largest industrial conglomerates in America. It has invested so aggressively in foreign expansion is due to the fact that they want to achieve their main goal which was to be number one or two globally in every business in which it participate. They took opportunities to exploit countries which having economic downturn. In term of example, in Europe from 1989 to 1995, they manage to invest $17.5 billion in the region, half of which was used to acquire some 50 companies; in 1995, when the Mexican peso collapsed in value, they purchase companies throughout Latin America; and during the economic crisis in Asian currency markets in 1997 and 1998, which led to the company spend $15 billion on acquisition within six months in Japan only. As a result, by the end of Welch’s tenure in 2001, their international sales revenues increase from 20 percent until 40 percent.…

    • 1678 Words
    • 5 Pages
    Powerful Essays
    Read More

Related Topics