General Motors

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General Motors Company
TypePublic
Traded as
IndustryAutomotive
Predecessor(s)General Motors Corporation (1908–2009)
FoundedFlint, Michigan, United States (September 16, 1908 (1908-09-16))
Founder(s)
HeadquartersDetroit, Michigan, United States
Number of locations396 facilities on six continents[1]
Area servedWorldwide
Key peopleTim Solso, (Chairman)
Mary Barra, (CEO)
Dan Ammann, (President)
Products
Production outputIncrease 9,714,652 vehicles (2013)[2]
Services
  • Vehicle financing
RevenueIncrease US$ 155.42 billion (2013)[3]
Operating incomeIncrease US$ 4.919 billion (2013)[3]
Net incomeDecrease US$ 5.346 billion (2013)[3]
Total assetsIncrease US$ 166.34 billion (2013)[3]
Total equityIncrease US$ 42.60 billion (2013)[3]
Employees219,000 (2013)[1]
DivisionsBuick
Chevrolet
Cadillac
GMC
GM Fleet & Commercial
Subsidiaries
Websitegm.com
References: [4]
 
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General Motors Company
TypePublic
Traded as
IndustryAutomotive
Predecessor(s)General Motors Corporation (1908–2009)
FoundedFlint, Michigan, United States (September 16, 1908 (1908-09-16))
Founder(s)
HeadquartersDetroit, Michigan, United States
Number of locations396 facilities on six continents[1]
Area servedWorldwide
Key peopleTim Solso, (Chairman)
Mary Barra, (CEO)
Dan Ammann, (President)
Products
Production outputIncrease 9,714,652 vehicles (2013)[2]
Services
  • Vehicle financing
RevenueIncrease US$ 155.42 billion (2013)[3]
Operating incomeIncrease US$ 4.919 billion (2013)[3]
Net incomeDecrease US$ 5.346 billion (2013)[3]
Total assetsIncrease US$ 166.34 billion (2013)[3]
Total equityIncrease US$ 42.60 billion (2013)[3]
Employees219,000 (2013)[1]
DivisionsBuick
Chevrolet
Cadillac
GMC
GM Fleet & Commercial
Subsidiaries
Websitegm.com
References: [4]

General Motors Company, commonly known as GM, is an American multinational corporation headquartered in Detroit, Michigan that designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. General Motors produces vehicles in 37 countries under ten brands: Chevrolet, Buick, GMC, Cadillac, Opel, Holden, Vauxhall, Wuling, Baojun, Jie Fang, UzDaewoo.[5][6] General Motors holds a 20% stake in IMM, and a 96% stake in GM Korea. It also has a number of joint-ventures, including Shanghai GM, SAIC-GM-Wuling and FAW-GM in China, GM-AvtoVAZ in Russia, Ghandhara Industries in Pakistan, GM Uzbekistan, General Motors India, General Motors Egypt, and Isuzu Truck South Africa. General Motors employs 212,000 people and does business in 157 countries.[1] General Motors is divided into five business segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA), and GM Financial.[7](pp12, 13)

General Motors led global vehicle sales for 77 consecutive years from 1931 through 2007, longer than any other automaker, and is currently among the world's largest automakers by vehicle unit sales.[8]

General Motors acts in most countries outside the USA via wholly owned subsidiaries, but operates in China through 10 joint ventures.[7]:pp.18, 96 GM's OnStar subsidiary provides vehicle safety, security and information services.

In 2009, General Motors shed several brands, closing Saturn, Pontiac and Hummer, and emerged from a government-backed Chapter 11 reorganization. In 2010, GM made an initial public offering that was one of the world's top 5 largest IPOs to date and returned to profitability later that year.[9]

GM is currently undergoing an investigation by the United States Congress over why they decided to wait ten years to fix an ignition defect linked to at least 13 deaths[10]

History[edit]

The company was founded on September 16, 1908, in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant.[11] At the beginning of the 20th century there were fewer than 8,000 automobiles in America and Durant had become a leading manufacturer of horse-drawn vehicles in Flint before making his foray into the automotive industry.[12] 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 which has benefited the city of Flint, his adopted home. GM 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.[13]

The longest-lived continuous automobile nameplate still in production in the world is the Chevrolet Suburban

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 in 1916. 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 led global sales for 77 consecutive years from 1931 through 2007, longer than any other automaker. In 2008, 2009, and 2010, GM has ranked as the second largest global automaker by sales. The company regained its position as the world's largest automaker, by vehicle unit sales, in 2011.[8] GM filed for Chapter 11 bankruptcy in June 2009, following the recession of 2008–2009 and a failure to obtain government loans.

Chapter 11 Bankruptcy[edit]

On July 10, 2009, General Motors emerged from government backed Chapter 11 reorganization after an initial filing on June 8, 2009.[14][15] Hummer, Pontiac and Saturn were closed.[16] After initially moving to shut down the Swedish brand, Saab was sold to Dutch automaker Spyker.[17] Shareholders did not have access to assets from GM in Asia or Europe. In 2010, GM returned to using its traditional ticker symbol on the New York Stock Exchange, and in 2010 is also traded on the Toronto Stock Exchange.[18] The company was relisted on the New York Stock Exchange and the Toronto Stock Exchange again on November 18, 2010, following a US$33-a-share initial public offering of US$23 billion, including preferred shares. The proportion of the Company held by the U.S. Treasury department reduced from 61% to about 26%, including preferred shares and accounting for stock options given to former GM bondholders.[19][20] Initial sale of such shares gave the Treasury department about US$13.6 billion in proceeds. SAIC Motor, partner of GM in China and India, acquired just less than 1 percent of the GM shares for about $500 million.[20][21] Following 2010 IPO, the U.S. government retained a 26% stake in GM. A White House report sent to Congress in August 2012 estimated the sale of the remaining GM stock acquired by the United States Treasury during the company's bankruptcy will result in a loss of $25.1 billion to the American taxpayer.[22] In December 2012, the U.S. Government further reduced its holdings to 19%. On December 10, 2013, the U.S. Treasury sold the last of its GM stock bringing an end to the controversial government ownership of the car company. The final cost of the GM bailout cost the U. S. taxpayer $12 billion ($10.5 billion for General Motors and $1.5 billion for former GM financing GMAC, now known as Ally).[23]

A Center for Automotive Research (CAR) study reported that in just a single year, 2010, the automotive industry generated $91.5 billion in state and local tax revenue and $43 billion in federal tax revenue in the United States.[24] The CAR studies have shown significant government tax revenues are generated by the auto industry.[25]

2012 lawsuit[edit]

In 2012, a trust representing unsecured creditors of "old" GM filed a lawsuit against GM over payments made to hedge funds in 2009 in exchange for waiving of claims against GM's Canadian subsidiary. The deal, of which presiding judge Robert Gerber says he was unaware - despite its disclosure in an SEC filing on the day GM sought Chapter 11 protection - could prompt a reopening of the 2009 case.[26]

Corporate governance[edit]

Based on global sales, General Motors is routinely among one of the world's largest automakers.[27] Headquartered at the Renaissance Center in Detroit, GM employs approximately 202,000 people around the world. In 2009, General Motors sold 6.5 million cars and trucks globally; in 2010, it sold 8.4 million.

Executive management:[28]

As part of the company's advertising, Ed Whitacre announced the company's 60-day money-back guarantee and repayment of $6.7 billion loan from government ahead of schedule.[34] On December 12, 2013, GM announced that Mary Barra, 51, executive vice president, Global Product Development, Purchasing and Supply Chain, was elected by the Board of Directors to become the next CEO of the company succeeding Dan Akerson on January 15, 2014. Barra will also join the GM Board.[35] From June 2009 to March 2011, the company had three chief executive officers and three chief financial officers.[36]

Financial results[edit]

The company has reported annual profits since 2010. It can carry forward previous losses to reduce tax liability on future earnings. It earned $4.7 billion in 2010. The Wall Street Journal estimated the tax break, including credits for costs related to pensions and other expenses can be worth as much as $45 billion over the next 20 years.[37]

In 2010, General Motors ranked second on the list with 8.5 million units produced globally.[38] In 2011, GM returned to the first place with 9.025 million units sold worldwide, corresponding to 11.9% market share of the global motor vehicle industry. The top two markets in 2011 were China, with 2,547,203 units, and the United States, with 2,503,820 vehicles sold. The Chevrolet brand was the main contributor to GM performance, with 4.76 million vehicles sold around the world in 2011, a global sales record.[39]

In May 2013 during a commencement speech, CEO Dan Akerson suggested that GM was on the cusp of rejoining the S&P 500 index. GM was removed from the index as it approached bankruptcy in 2009.[40]

World presence[edit]

Calendar YearU.S. sales
(vehicles)
Chg/yr.
1998[41]4,603,991
19995,017,150Increase9.0%
2000[42]4,953,163Decrease1.3%
20014,904,015Decrease1.0%
20024,858,705Decrease0.9%
20034,756,403Decrease2.1%
2004[43]4,707,416Decrease1.0%
20054,517,730Decrease4.0%
2006[44]4,124,645Decrease8.7%
2007[45]3,866,620Decrease6.3%
2008[46]2,980,688Decrease22.9%
2009[47]2,084,492Decrease30.1%
2010[48]2,215,227Increase6.3%
2011[49]2,503,820Increase13.7%
20122,595,717Increase3.7%
2013[50]2,786,078Increase7.3

North America[edit]

General Motors of Canada Limited is reported to be in the Superior Court of Ontario, Canada, as a privately owned Canadian company with the corporation as indirect parent. The employees are not all Canadian, as salary personnel are from the USA and work for the corporation. GM products focus primarily on its four core divisions – Chevrolet, Cadillac, Buick, and GMC. The GM restructuring has resulted in a lower break even point for annual sales and renewed profits.[51][52]

In the mid-2005, GM announced that its corporate chrome power emblem "Mark of Excellence" would begin appearing on all recently introduced and all-new 2006 model vehicles produced and sold in North America. However, in 2009 the "New GM" reversed this, saying that emphasis on its four core divisions would downplay the GM logo.[53]

GM typically reports as among the largest auto makers in the United States. In May 2012, GM recorded an 18.4% market share in the U.S.[54]

South America[edit]

In 2008 the third largest individual country by sales was Brazil with some 550 thousand GM vehicles sold. In that year the other South American countries Argentina, Colombia, and Venezuela sold another 300 thousand GM vehicles, suggesting that the total GM sales in South America (including sales in other South American countries such as Chile, Peru, Ecuador, Bolivia, etc.) in that year were at a similar level to sales in China.

Europe[edit]

Opel is the main GM brand name in Europe except in the UK, where Opel's British subsidiary, Vauxhall, still uses its own "Vauxhall" brand name. The Chevrolet brand was reintroduced in Europe in 2005, selling mostly South-Korean made small cars. In 2012, PSA Peugeot Citroen and General Motors formed an alliance, which involved General Motors acquiring seven percent of PSA Group. On December 13, 2013, GM announced it had divested itself from the seven percent, generating "gross proceeds of €0.25 billion."[55][56] Also in December 2013, GM announced it would drop the Chevrolet brand in Europe by the end of 2015, to focus on Opel/Vauxhall. Chevrolets will continue to be sold in Russia and the Commonwealth of Independent States. GM lost approximately $18 billion over the past 12 years in Europe.[57][58]

GM worldwide 2008 vehicle sales[59]
(thousands)
Rank
in GM
LocationVehicle
sales
Market
share (%)
1 United States2,98122.1%
2 China1,09512.0%
3 Brazil54919.5%
4 United Kingdom38415.4%
5 Canada35921.4%
6 Russia33811.1%
7 Germany3008.8%
8 Mexico21219.8%
9 Australia13313.1%
10 South Korea1179.7%
11 France1144.4%
12 Spain1077.8%
13 Argentina9515.5%
14 Venezuela9133.3%
15 Colombia8036.3%
16 India664.4%

Asia[edit]

The company manufactures most of its China market vehicles locally. Shanghai GM, a joint venture with the Chinese company SAIC Motor, was created on March 25, 1997. The Shanghai GM plant was officially opened on December 15, 1998, when the first Chinese-built Buick came off the assembly line. The SAIC-GM-Wuling Automobile joint-venture is also successfully selling microvans under the Wuling brand (34 percent owned by GM). Much of General Motors' recent growth has been in the People's Republic of China, where its sales rose 66.9 percent in 2009, selling 1,830,000 vehicles and accounting for 13.4 percent of the market.[60]

The Buick is strong in China, led by the Buick Excelle subcompact. The last emperor of China owned a Buick.[61] The Cadillac brand was introduced in China in 2004, starting with exports to China. GM pushed the marketing of the Chevrolet brand in China in 2005 as well, transferring Buick Sail to that brand.

In August 2009 the joint venture of FAW GM Light Duty Commercial Vehicle Co Ltd was formed that mainly produces Jiefang light-duty trucks.[62]

General Motors vehicle sales in China rose 28.8 percent to a record 2,351,610 units in 2010.[63] GM set up an auto research center as part of a USD250 million corporate campus in Shanghai to develop 'gasoline-hybrid cars, electric vehicles and alternative fuels, engines and new technologies'.[64] The company plans to double its sales from 2010 to about 5 million units in China by 2015.[65]

SAIC-GM-Wuling established the low-cost Baojun brand to better compete with domestic rivals, Chery, Geely and BYD for first-time buyers of cars priced around USD10,000. It is estimated that such market in China is about 5 million vehicles a year, larger than the auto market in France and Britain combined. However some are worried that 'local brands like Baojun could eventually become threats to their parent brands if they compete more against established models over time'. Shanghai-GM-Wuling sold 1.23 million vehicles in 2010, mainly commercial vans and trucks, of which about 700,000 units were a van called Sunshine.[66]

GM maintains a dealership presence in Japan, called GM Chevrolet Shop, previously known as GM Auto World Shop. The GM Japan website can be accessed here [1]. Current GM Japan dealerships were either former Saturn dealerships or Isuzu dealership locations. GM products are also currently sold by the company Yanase Co., Ltd. since 1915.

In August 2011, GM announced plans to build a plant in Bekasi, West Java, Indonesia, which would produce 40,000 passenger cars per year for the Southeast Asian market. It is the third plant in Southeast Asia, after the Rayong plant, Thailand, and the Hanoi plant, Vietnam.[67]

In October 2011, the South Korea Free Trade Agreement opened up the South Korean auto market to American made cars.[68] GM owns (per 31 December 2011) 77.0% of its joint venture in South Korea, GM Korea.[7]:p.96 As of 2013 GM currently owns 96% of GM Korea.

On March 11, 2013, GM opened a new 190,300 square-foot manufacturing plant in Beraki, Indonesia.[69]

Africa[edit]

GM has a long history in Egypt which began in the 1920s with the assembly of cars and light pickup trucks for the local market. In the mid of the 1950s, GM withdrew from the Egyptian market. Some year later, the Ghabbour Brothers began to assemble Cadillac, Chevrolet and Buick models up to the 1990s.

Since 1983 GM and Al-Monsour Automotive Company has founded the General Motors Egypt which is currently the only manufacturer of traditional GM branded vehicles in Egypt. The Speranza Motors is a big company which started in the 1990s with the SKD assembling of Daewoo cars. Today the main products of Speranza are from the Chinese Chery concern.

GM began operating in South Africa in 1913 through its wholly owned subsidiary, General Motors South Africa. Following the passage of the Comprehensive Anti-Apartheid Act in 1986, GM was forced to divest from South Africa, and GMSA became the independent Delta Motor Corporation. GM purchased a 49% stake in Delta in 1997 following the end of apartheid, and acquired the remaining 51% in 2004, reverting the company to its original name.

Another manufacturing base of the GM for the African markets is the Industries Mécaniques Maghrébines headquartered in Kairouan, Tunisia which assembles Isuzu and Mazda models for the Maghreb region. General Motors East Africa (GMEA) located in Nairobi, Kenya assembles a wide range of Isuzu trucks and buses including the popular Isuzu N-Series versatile light commercial vehicle, TF Series pick-ups and Isuzu bus chassis. Formed in 1975, GMEA's facility is the largest assembler of commercial vehicles in the region exporting to East and Central African countries including Uganda, Tanzania, Malawi, Rwanda and Burundi. In addition to assembly, GMEA also markets the Chevrolet products Spark and Optra.

In the 1920s Miller Brothers Nigeria was founded as an importer of commercial vehicles of the Bedford brand into the country. In 1949, the company opened its own assembly plant and operated under the name Niger/Nigeria Motors. In 1965 the plant and its distribution network was split into different companies and renamed as Federated Motors Industries. In 1991 the company was taken in by a joint venture between General Motors and UACN of Nigeria.

Oceania[edit]

In Australia and New Zealand GM has been represented by the Holden brand since 1948, GM having acquired the company in 1931. In 2012, GM Opel cars began to be imported into Australia as a niche marque under their own brand name.[70] However, as of August 2013, GM has made the decision to remove the Opel brand from Australia noting poor adoption and sales.[71] In the 1980s and 1990s, General Motors New Zealand sold Opel-badged cars, which were later rebadged as Holdens in 1994.

On 10 December 2013,[72] GM announced that Holden would cease engine and vehicle manufacturing operations in Australia by the end of 2017.[73] Beyond 2017 Holden's Australian presence will consist of: a national sales company, a parts distribution centre and, a global design studio.[72]

Motorsport[edit]

GM has participated over the years in the World Touring Car Championship (WTCC), 24 Hours of Le Mans, NASCAR, SCCA, V8 Supercars, and many other world venues.

2008 Chevrolet "Impala" themed NASCAR race car driven by NASCAR's Jimmie Johnson
Chevrolet Cruze in the WTCC
Corvette Racing Team in the American Le Mans Series

GM's engines were highly successful in the Indy Racing League (IRL) throughout the 1990s, winning many races in the small V-8 class. GM has also done much work in the development of electronics for GM auto racing. An unmodified Aurora V-8 in the Aerotech, captured 47 world records, including the record for speed endurance in the Motorsports Hall of Fame of America. Recently, the Cadillac V-Series has entered motorsports racing.

GM has also used many cars in the American racing series NASCAR. Currently the Chevrolet SS is the only entry in the series but in the past the Pontiac Grand Prix, Buick Regal, Oldsmobile Cutlass, Chevrolet Lumina, Chevrolet Malibu, and the Chevrolet Monte Carlo were also used. GM has won a total of 40 NASCAR Sprint Cup Series manufacturer's championships, including 34 with Chevrolet, the most of any make in NASCAR history, 3 with Oldsmobile, 2 with Buick, and 1 with Pontiac. GM leads all other automobile manufacturers in races won in NASCAR's premier series at 1,011. Chevrolet leads individual makes with 677 wins.

In Australia, there is the V8 Supercar Championship which is battled out by the two main rivals of (GM) Holden and Ford. The current Holden Racing Team cars are based on the Holden Commodore and run a 5.0-litre V8-cylinder engine producing 635 bhp (474 kW). These cars have a top speed of 298 km/h (185 mph) and run 0–100 km/h in 3.8 seconds. The Holden Racing Team is Australia's most successful team in Australian Touring Car History. In 2006 and 2007, the Drivers championship was won by the very closely linked (now defunct) HSV Dealer Team.

Research and development[edit]

Research and development (R&D) at General Motors began organically as the continuation of such R&D as the various divisions (e.g., Cadillac, Buick, Olds, Oakland) were already doing for themselves before the merger. Its character was entirely empirical; it was whatever key people in each company had been competent enough to organize and pursue.

Charles F. Kettering's Dayton Engineering Laboratories Company (Delco), at Dayton, Ohio, was still an independent firm at this time. Its work was well known to GM central management through its relationship as a supplier and consultancy to Cadillac and Buick.

In 1916, Durant organized the United Motors Corporation as an amalgamation of parts suppliers, supplying GM and other OEMs but independent of GM.[74] Alfred P. Sloan, head of the newly acquired Hyatt Roller Bearing Corporation, became United Motors' CEO. United Motors acquired Delco, and Kettering began his association with Sloan. United Motors also acquired at this time the original Remy corporation[74] (called the Remy Electric Company), a competitor of Delco. In 1918 General Motors bought United Motors.[74] Various entities grew out of the original Delco and Remy, including the Dayton Metal Products Corporation, the General Motors Research Corporation, the Delco Division and Remy Electric Division of GM, Delco Remy (now Remy International, Inc.), ACDelco, Delco Electronics, and others. Today's main successor corporation is Delphi Automotive, which nowadays is an independent parent corporation.

The General Motors Research Corporation, at Dayton under Kettering, became a true automotive research center. During the next few decades it led the development of:

Although GM R&D (as it is known in colloquial shorthand) began as an organization largely built around one extraordinary man (Kettering), it eventually evolved into a more modern organization whose path is shaped by individuals but not dominated entirely by any of them. World War II was a turning point wherein military affairs, after mingling with the technologies of applied science for some 80 years, first started to become fundamentally reinvented by them. Civilian life, too, changed in this direction. By the 1950s, corporations such as GM and many others were facing a new era of R&D, different from earlier ones. Less about genius inventors and individual inventions, and more about organizational progress and integrated systems, it raised new questions about where the capital for R&D would come from in an era of limitless demand for R&D (although not necessarily for production). Alfred Sloan, longtime CEO of GM (1920s to 1960s), discussed in his memoir (also considered a seminal management treatise) the relationships between government, academia, and private industry in the areas of basic science and applied science, in light of this new era.[83] The views he laid out reflected (and influenced) wide consensus on these relationships that persists largely to today.

Today, GM R&D, headquartered in Warren, Michigan, is a network of six laboratories, six science offices, and collaborative relationships in over twelve countries including working relationships with universities, government groups, suppliers, and other partners from across the globe.

Small car sales[edit]

Chevrolet Aveo Concept, later went into production as the Chevrolet Aveo, UK and the Chevrolet Sonic, US

From the 1920s onward, General Motors always maintained an internal dialog about what its economy-car and small-car policies should be.[84][85] The economy and size considerations often naturally overlapped, although a strong distinction was always drawn in the 20th century between policies for the U.S. market and policies for other markets. Economy (in some form) always had good demand anywhere, but its definition in the U.S. was long considered different from that in other markets. In this view, "economy" in the U.S. did not mean "small" in the sense of what qualified as "small" outside the U.S. The policy discussion often focused on topics like the higher demand for truly small cars in non-U.S. markets than in the U.S., and whether it made more sense to import a car into a certain country or to build it domestically within that country, either as some variant of knockdown or with truly extensive domestic sourcing.[84] GM's acquisitions of Vauxhall Motors Ltd (UK, 1925)[84] and Adam Opel AG (Germany, 1929),[84] rather than starting new domestic companies to compete against them, were based on analyses that convinced GM managers that acquiring an existing domestic manufacturer was a better business decision.[84]

Although GM since the 1920s has always offered economy models in the U.S. market (relative to that market's definition in any given decade), and had done research and development in the 1940s and 1950s in preparation for any potential rise of strong demand for truly small cars in the U.S. market,[85] it has also been criticized over the decades for not doing enough to promote fuel efficiency in the U.S. market in the 1970s through 1990s. GM's response has been that it has always responded to market demands, and that most Americans, despite anything they said to the contrary, did not actually demand (at purchasing-decision time) small size or fuel efficiency in their vehicles to any great or lasting extent. Although some U.S. consumers flocked temporarily to the ideal of fuel economy whenever fuel supply crises arose (such as 1973 and 1979), they flocked equally enthusiastically to SUVs when cheap fuel of the 1980s and 1990s temporarily shielded them from any downside to these choices.

Since the return of high fuel prices in the 2000s and 2010s, GM's interest in [truly-]small-car programs for the U.S. market has been renewed. As part of General Motors Company development, GM revived one of its idled U.S. factories for the production of a small car in Orion, Michigan, with the creation of 1,200 American jobs. This will be the first time ever that a large manufacturer produces a supermini vehicle in the United States. This retooled plant will be capable of building 160,000 cars annually, including both small and compact vehicles. Production started in late 2011 with the Chevrolet Sonic.[86]

Environmental initiatives[edit]

The 2011 Chevrolet Volt, a plug-in electric vehicle.

General Motors has published principles regarding the environment and maintains an extensive website to inform the public. In 2008, General Motors committed to engineering half of its manufacturing plants to be landfill-free. In order to achieve its landfill-free status, production waste is recycled or reused in the manufacturing process.

Critics, however, point to evidence of General Motors' poor environmental record,[87] arguing that General Motors' environmental rhetoric is deeply hypocritical. The EPA and others have listed General Motors as a particularly egregious polluter.[88] General Motors has even been sued by the U.S. Department of Justice for environmental devastation.[87] GM was convicted in 1949 of conspiring to dismantle streetcar systems across the United States.[89]

The world's largest rooftop solar power installation was installed at General Motors Spanish Zaragoza Manufacturing Plant in fall 2008. The Zaragoza solar installation has about 2,000,000 square feet (190,000 m2) of roof at the plant and contains about 85,000 solar panels. The installation was created, owned and operated by Veolia Environment and Clairvoyant Energy, who lease the rooftop area from General Motors. [90][91][92] In 2011, General Motors also invested $7.5 million in solar-panel provider Sunlogics, which will install solar panels on GM facilities.[93]

GM has long worked on alternative-technology vehicles, and has led the industry with ethanol-burning flexible-fuel vehicles that can run on either E85 (ethanol) or gasoline. The company was the first to use turbochargers and was an early proponent of V6 engines in the 1960s, but quickly lost interest as muscle car popularity increased. They demonstrated[94] gas turbine vehicles powered by kerosene, an area of interest throughout the industry, but abandoned the alternative engine configuration in view of the 1973 oil crisis. In the 1970s and 1980s, GM pushed the benefits of diesel engines and cylinder deactivation technologies with disastrous results due to poor durability in the Oldsmobile diesels and drivability issues in the Cadillac V8-6-4 variable-cylinder engines. In 1987, GM, in conjunction with AeroVironment, built the Sunraycer, which won the inaugural World Solar Challenge and was a showcase of advanced technology. Much of the technology from Sunraycer found its way into the Impact prototype electric vehicle (also built by Aerovironment) and was the predecessor to the General Motors EV1.

GM supported a compromise version of the Corporate Average Fuel Economy (CAFE) standard increase from 27 mpg-US (8.7 L/100 km; 32 mpg-imp) to 35 mpg-US (6.7 L/100 km; 42 mpg-imp), the first such increase in over 20 years.[95] GM announced they will introduce more Volt-based plug-in hybrids.

Hybrid electric vehicles[edit]

Chevrolet Tahoe Hybrid

In May 2004, GM delivered the world's first full-sized hybrid pickups, the 1/2-ton Silverado/Sierra. These mild hybrids did not use electrical energy for propulsion, like GM's later designs. In 2005, the Opel Astra diesel Hybrid concept vehicle was introduced. The 2006 Saturn Vue Green Line was the first hybrid passenger vehicle from GM and is also a mild design. GM has hinted at new hybrid technologies to be employed that will be optimized for higher speeds in freeway driving.

GM currently offers the 2-mode hybrid system used by the Chevrolet Tahoe/GMC Yukon/Cadillac Escalade, and GM 1/2 half-ton pickups and will later be used on other vehicles.[96]

Within the framework of its vehicle electrification strategy,[97] GM introduced the Chevrolet Volt in 2010, an electric vehicle with back-up generators powered by gasoline. The production Chevrolet Volt was available in late 2010 as a 2011 model with limited availability.[98] GM delivered the first Volt during December 2010.

The GM Magic Bus is a hybrid-powered bus.[99]

All-electric vehicles[edit]

General Motors was the first company (in the modern era) to release an all-electric automobile.[97] In 1990, GM debuted the "Impact" concept car at the Los Angeles Auto Show. It was the first car with zero-emissions marketed in the US in over three decades. The Impact was eventually produced as the EV1 for the 1996 model year. It was available through dealers located in only a few regions (e.g., California, Arizona, Georgia). Vehicles were leased, rather than sold, to individuals. In 1999 GM decided to cease production of the vehicles. When the individual leases had expired, they declined to renew the leases or allow the lessors to purchase them. All of the EV1s were eventually returned to General Motors and, with the exception of a few which were donated to museums, all were destroyed. The documentary film Who Killed the Electric Car? covered the EV1 story.

The EV1's cancellation had disappointed supporters of electric vehicles. In 2010, GM debuted the Chevrolet Volt, an electric vehicle with back-up generators powered by gasoline. General Motors has announced that it is building a prototype two-seat electric vehicle with Segway. An early prototype of the Personal Urban Mobility and Accessibility vehicle—dubbed Project P.U.M.A. – was presented in New York at the 2009 New York International Auto Show.[100] In October 2011, General Motors announced the production of the Chevrolet Spark EV, an all-electric version of the third generation Chevrolet Spark, with availability limited to select U.S. and global markets. In October 2012, GM Korea announced it will start making and selling the Spark EV domestically in 2013.[101] The production version was unveiled at the 2012 Los Angeles Auto Show.[102] Within the framework of GM's vehicle electrification strategy,[97] the Spark EV is the first all-electric passenger car marketed by General Motors in the U.S. since the EV1 was discontinued in 1999.[103] The Spark EV was released in the U.S. in selected markets in California and Oregon in June 2013.[104] Retail sales began in South Korea in October 2013.[105] GM also plans to sell the Spark EV in limited quantities in Canada and select European markets.[106][107]

Battery packs for electric vehicles[edit]

GM builds battery packs in southern Michigan.[98] GM also established an automotive battery laboratory in Michigan.[108] GM will be responsible for battery management systems and power electronics, thermal management, as well as the pack assembly. An existing GM facility at Brownstown Township was chosen to be upgraded as battery pack plant.[98] LG Chem's U.S. subsidiary, Compact Power of Troy, Michigan, has been building the prototype packs for the development vehicles and will continue to provide integration support and act as a liaison for the program.

Hydrogen initiative[edit]

Sequel, a fuel cell-powered vehicle from GM

The 1966 GM Electrovan is credited with being the first hydrogen fuel cell car ever produced.[citation needed] Though fuel cells have been around since the early 1800s, General Motors was the first to use a fuel cell to power the wheels of a vehicle.[109] The economic feasibility of the technically challenging hydrogen car, and the low-cost production of hydrogen to fuel it, has also been discussed by other automobile manufacturers such as Ford and Chrysler. In June 2007, Larry Burns, vice president of research and development, said he's not yet willing to say exactly when hydrogen vehicles will be mass-produced, but he said it should happen before 2020, the year many experts have predicted. He said "I sure would be disappointed if we weren't there" before 2020.[110]

On July 2, 2013, GM and Honda announced a partnership to develop fuel cell systems and hydrogen storage technologies for the 2020 time frame. GM and Honda are leaders in fuel cell technology, ranking No. 1 and No. 2, respectively, in total fuel cell patents filed between 2002 and 2012, with more than 1,200 between them according to the Clean Energy Patent Growth Index.

Flexible-fuel vehicles[edit]

GM produces several flexible-fuel vehicles that can operate on E85 ethanol fuel or gasoline, or any blend of both. Since 2006 GM started featuring a bright yellow gas cap to remind drivers of the E85 capabilities,[111][112][113][114] and also using badging with the text "Flexfuel/E85 Ethanol" to clearly mark the car as an E85 FFV.[115][116]

GM is the leader in E85 flex fuel vehicles, with over 6 million FlexFuel vehicles on the road in the U.S. In 2010, GM pledged to have more than half of their annual vehicle production be E85 or biodiesel capable by 2012.[117] As of 2012, GM offers 20 ethanol-enabled FlexFuel cars and trucks in the US, and offers more FlexFuel vehicles models than any other automaker.[118]

Philanthropy[edit]

General Motors has been a leading contributor to charity. Critics, however, point to General Motors' abusive labor practices,[119] offshoring of production, and poor environmental record,[87] observing that General Motors' "philanthropy" is funded by its exploitation of workers and the environment.

Since 1994, General Motors has donated over $23 million in cash and vehicles to the Nature Conservancy, and funding from GM supports many conservation projects.[120]

Through 2002, the PACE Awards program, led by GM, EDS, and SUN Microsystems, has given over $1.2 billion of in-kind contributions which includes computers to over 18 universities to support engineering education.[121] In 2009, the GM led group has helped the Pace Awards program worldwide.[122]

In 2004, GM gave $51,200,000 in cash contributions and $17,200,000 in-kind donations to charitable causes.[123]

The General Motors Foundation (GM Foundation) receives philanthropic bequests from General Motors. It is a 501(c)(3) foundation incorporated in 1976.[124]

Since 1996, the GM Foundation 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.[125][126]

Brand reorganization[edit]

As it emerged from bankruptcy and company reorganization in 2010, GM reorganized the content and structure of its brand portfolio (its brand architecture).[127] Some nameplates like Pontiac, Oldsmobile, Saturn, Hummer, and service brands like Goodwrench were discontinued. Others, like SAAB, were sold.[128] The practice of putting the "GM Mark of Excellence" on every car, no matter what the brand, was discontinued in August, 2009.[129] The company has moved from a corporate-endorsed hybrid brand architecture structure, where GM underpinned every brand to a multiple brand corporate invisible brand architecture structure.[130] The company's familiar square blue "badge" has been removed from the Web site and advertising, in favor of a new, subtle all-text logo treatment on its U.S. site;[127] the Canadian site still retaines the blue "badge".[131] In 2011, GM discontinued the Daewoo brand in South Korea and replaced it with the Chevrolet brand.[132]

GM describes their brand politics as having "two brands" which "will drive our global growth. They are Chevrolet, which embodies the qualities of value, reliability, performance and expressive design; and Cadillac, which creates luxury vehicles that are provocative and powerful. At the same time, the Holden, Buick, GMC, Baojun, Opel and Vauxhall brands are being carefully cultivated to satisfy as many customers as possible in select regions."[5][7]:p.182

BrandYear foundedYear began making autosYear joined GMMarkets served today
China Baojun201020102010China
United States Buick189919031908North America, China
United States Cadillac190219021909North America, Europe, China, Japan, South Korea, Middle East
United States Chevrolet191119111917Global, except Australia, New Zealand
United States GMC190119011909North America, Middle East
Australia Holden185619081931Australia, New Zealand
China Jiefang201120112011China
Germany Opel186218991929Europe (except the United Kingdom), North Africa, South Africa, Middle East, Singapore, Chile
China Wuling200220022002China
Uzbekistan UzDaewoo199219961992Central Asia, Russia
United Kingdom Vauxhall185719031925United Kingdom

Discontinued brands[edit]

(Note on dates: the dates below are the years each brand existed, which are not always the same as the dates they were part of GM.)

Former subsidiaries[edit]

Current affiliates[edit]

Former affiliates[edit]

Spin-offs[edit]

Controversy[edit]

General Motors has often been plagued by controversy for its labor practices abroad, its steady outsourcing of production from the United States, and its demands for concessions from its workers. In a recent and ongoing scandal, the General Motors plant in Colombia reportedly fired roughly 200 workers after they were injured on the assembly line, and in August 2012 negotiations refused to cover even the workers' medical costs or pension benefits.[119] In protest, a group of the workers has been living in tents outside the U.S. Embassy in Colombia since August 2011, and the president of the workers' association, ASOTRECOL, went on a 72-day hunger strike from late 2012 to early 2013. General Motors has refused to enter new negotiations with the workers, with GM spokesperson Katie McBride saying that the company's stance had been "very generous."[141]

General Motors' environmental record has also drawn heavy criticism from advocates of public health and a sustainable planet. The Environmental Protection Agency and the Political Economy Research Institute at the University of Massachusetts have both cited General Motors as a particularly bad polluter of the environment.[88] General Motors has also been sued by the United States Department of Justice for environmental destruction.[87]

General Motors has also come under criticism for bogus fuel efficiency claims. Consumer Reports performed independent tests on the 2014 Chevrolet Cruze, showing that the 1.4 litre engine used the equivalent of 9.05 litres of gas per 100 kilometres in combined city/highway tests, which is one third more than the combined city/highway results that GM Canada claims.[142]

See also[edit]

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Further reading[edit]

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External links[edit]