This Market Business News information article includes details on the General Motors Company (GM), one of the world’s leading automotive companies, based in the US.
In 1908 GM was founded in Michigan, USA, as part of the Buick Motor Company.
William C Durant began expanding the General Motors Company by acquiring other vehicle manufacturers, including: Oldsmobile (formed in 1897), Cadillac (formed in 1902), Elmore (formed in 1893), Oakland (formed in 1907).
A few years later (in 1910) Durant left GM and joined Louis Chevrolet to create the Chevrolet company (in 1911).
However, in 1916 Durant became the majority share holder of GM (rejoining the company as president) and the company Chevrolet became part of GM.
GM was the global leader in car sales for from 1931 to 2007 (for 77 consecutive years). Today it is the largest automaker in the United States and the second biggest (after Toyota) in the world.
GM focuses on producing automobiles, automobile parts, and commercial vehicles.
- CEO: Mary Barra
- Chairman: Tim Solso
- Industry: Automotive
- Type: Public company
- Listed on the New York Stock Exchange (NYSE)
- NYSE stock symbol: GM
- S&P 500 Component
- Founded: September 16, 1908
- Founder: William C Durant
- Revenue: $155.4 billion USD (2013)
- Net income: $3.8 billion USD (2013)
- Total assets: $166.344 billion USD (2013)
- Earning per share, diluted: $2.38 USD (2013)
- Company head office: 100 Renaissance Center, Detroit, Michigan, USA
- Employees: 219,000 (2013)
- Divisions: Buick, Chevrolet, Cadillac, GMC, GM Fleet & Commercial
- Company subsidiaries: Jie Fang, Open, Holden, Vauxhall, GM Financial, GM Goodwrench, ACDelco, DMAX, GM Components Holdings, General Motors do Brazil, GM Colmotores, General Motors Canada, General Motors Mexico, General Motors China, General Motors de Mexico, General Motors India, GM Korea Company, General Motors Japan, General Motors South Africa
|Key figures(in billions of USD except for share data)||2013||2012|
|Net income attributable to common stockholders||$3.8||$4.9|
|Total stockholders’ equity||$42.607||$36.244|
|Cash and cash equivalents at end of period||$20.021||$18.422|
|Earnings per share – basic (USD)||$2.71||$3.10|
|Earnings per share – diluted (USD)||$2.38||$2.92|
|Retail vehicle sales by segment (in thousands)||2013||2012|
|Asia/Pacific, Middle East and Africa||3,886||3,616|
Source: “GM Investors: Earnings Releases”
July 30, 2014: GM slipped to third place, after Toyota and Volkswagen in the global vehicle sales league table for the first six months of 2014. GM delivered 4.92 million automobiles, compared to VW’s 4.97 million and Toyota’s 5.097 million. Analysts are forecasting that VW will take the number one position by the end of this year.
July 24, 2014: Second quarter profits plunged 80% to $200 million compared to $1.2 billion in Q2 2013, caused mainly by the huge repair bill ($1.2 billion) after recalling nearly 29 million cars so far this year. Excluding the recall problems, global performance was fairly good. General Motors put aside an extra $400 million for ignition switch compensation payments.
July 5, 2014: June sales were 1% higher than the same month last year, marking the best June since 2007. Fleet sales increased by 2%. After adjusting for fewer selling days in June this year, total sales were 9% up, with fleet sales posting a 10% increase.
July 1, 2014: GM has recalled an additional 8.4 million vehicles manufactured since 1997 because of ignition switch defects. The company says it knows about seven accidents, eight injuries and three deaths allegedly linked to the fault. However, the company stresses that there is “no conclusive evidence” showing that the defects caused the accidents.
June 23rd, 2014: – GM is facing a new lawsuit which may exceed $10 billion, law firm Hagens Berman Sobol Shapiro announced, after filing the complaint with the Federal Court in Riverside, California. The lawyers argue that millions of GM owners’ cars have lost their resale value because of the ignition switch fiasco, which has damaged the GM brand.