Why General Motors Failed, Research

|Why General Motors Failed |

|Research |

| |

| Economics for Managers |

|April 29, 2011 |

Abstract

General Motors is one of the oldest automobile companies in United States. This research will explore the reasons for the General Motors Company failure after 101 (Cohan P., 2009) years of being in business. The U.S. economic factors contributing to the financial disaster of the company will discussed. The history of the company between the years 2006 and 2011 will be analyzed to gain an understanding of the financial failure of the company. The progress of GM after The United States government took over 61 percent of the newly formed company after GM bankruptcy in 2006 (Cohan P., 2009) will be presented. The consequences of this failure are tragic, but thanks to the bail out by the United States Government, not catastrophic.

Why General Motors Failed

Introduction

I. Brief history

General Motors was founded in 1908 and it was a global automotive and financing company. It was producer of carts, trucks and auto parts worldwide. The company operates in five segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and GM Financial. General Motors Financial is an automotive financial company, which finances new and used automobile purchases (NYT, 2011). The downfall of...