In 2009, General Motors employs approximately 244,500 people around the world. General Motors' global headquarters is the Renaissance Center located in Detroit, Michigan, United States. In 2008, GM sold 8.35 million cars and trucks globally. GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea and has collaborations with Shanghai Automotive Industry Corporation of China, AvtoVAZ of Russia, and most recently, UzAvtosanoa of Uzbekistan. GM has had collaborations with various automakers including Fiat (see GM/Fiat Premium platform) and Ford Motor Company. GM retains various stakes in different automakers.
GM received loans from European governments in 2009, and has reduced its ownership stake in European operations as part of its reorganization." As of July 10, 2009, the new GM has over $40B in cash, with the company's reorganized liability total of $48.8 B which includes $24.4 B to be paid to the Voluntary Employee Benefits Association (VEBA) trust, $9 B to the U.S. and Canadian governments, and $15 B in liabilities to suppliers and other bills. GM is slated to pay $10 B to the VEBA trust in December 2009, with the remainder being paid in increments from 2012-19. GM isn't required to make contributions to its pension fund until 2013, but it may elect to if needed, since the company contribued $15.2 B to its pension fund in 2003. Stock market conditions cause the fund value to fluctuate. In February 2009, GM's combined pension fund had about $85 B in assets, $56B in assets for hourly pensions and $29B in assets for salaried pensions. The domain name gm.com attracted at least 7 million visitors annually by 2008.
|GM worldwide vehicle sales by country 2008 |
| ||United States||2,981|| || ||Australia||133|| |
| ||China||1,095|| || ||Republic of Korea||117|| |
| ||Brazil||549|| || ||France||114|| |
| ||United Kingdom||384|| || ||Spain||107|| |
| ||Canada||359|| || ||Argentina||95|| |
| ||Russia||338|| || ||Venezuela||91|| |
| ||Germany||300|| || ||Colombia||80|| |
| ||Mexico||212|| || ||India||66|| |
|Top 4 markets/regions by vehicle sales in 2008 (thousands)|
| ||North America||3,552|| || ||European Union||905|| |
| ||China||1,095|| || ||South America||815|| |
General Motors is structured into the following operating groups:
|Group||Number of employees |
|GMAP (GM Asia-Pacific)||35,000|
|GM LAAM (GM Latin America, Africa and the Middle East)||36,000|
|GMNA (GM North America)||123,000|
|GMAC (GM Acceptance Corporation – finance and insurance services)|
|SPO (Service, Parts and Operations)|
|Total number of employees||252,000|
- Edward Whitacre, Jr. - Chairman of the Board of the Directors
- Fritz Henderson - Chief Executive Officer
- Ray Young - Chief Financial Officer (announced resignation)
- Robert "Bob" Lutz - Vice Chairman
- Tom Stephens - Vice Chairman
- Edward "Ed" Welburn - Global Vice President of General Motors Design, current and only the sixth head designer.
On July 23, 2009, GM announced its new Board of Directors: Daniel F. Akerson, David Bonderman, Robert D. Krebs, Patricia F. Russo along with current members Ed Whitacre (GM Chairman) and Fritz Henderson (GM CEO). Board members who are not GM employees will be paid $200,000 annually.
General Motors was founded on September 16, 1908, in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant. It acquired Oldsmobile later that year. In 1909, Durant brought in Cadillac, Elmore, Oakland and several others. Also in 1909, General Motors 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. A few years later, 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. 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 previously led in global sales for 77 consecutive years (1931 to 2007), longer than any other automaker.
Chapter 11 reorganization
On July 10, 2009, a new entity, NGMCO Inc. purchased the ongoing operations and trademarks from General Motors Corporation.The purchasing company in turn changed its name from NGMCO Inc. to General Motors Company, marking the emergence of a new operation from the "pre-packaged" Chapter 11 reorganization. Under the reorganization process, termed a 363 sale (for Section 363 which is located in Title 11, Chapter 3, Subchapter IV of the United States Code, a part of the Bankruptcy Code), the purchaser of the assets of a company in bankruptcy proceedings is able to obtain approval for the purchase from the court prior to the submission of a re-organization plan, free of liens and other claims. It’s used in most Chapter 11 cases that involve a sale of property or other assets. This process is typical of large organizations with complex branding and intellectual property rights issues upon exiting bankruptcy. The new company plans to issue an initial public offering (IPO) of stock in 2010.
GM's remaining pre-petition creditors' claims are paid from the remaining assets of Motors Liquidation Company, the new name of the former General Motors Corporation, although the directors of that company believe its debts far outweigh its assets. This means that while the former GM's bondholders may recover a small portion of their investment, former GM shareholders (now shareholders of Motors Liquidation Company) will likely not receive anything.
Also on July 10, 2009, GM announced plans to trim its U.S. workforce by 20,000 employees as part of its reorganization by the end of 2009 due to economic conditions.
The following table is a comparison (estimates) of the new GM and the old GM:
|Old GM (1908 - 2009)||New GM (2009 - )|
|Buick, Cadillac, Chevrolet, Daewoo, GMC, Holden, Hummer, Oldsmobile, Opel, Pontiac, Saab, Saturn, Vauxhall||Brands||Buick, Cadillac, Chevrolet, |
Daewoo (44%), GMC, Holden,
|Common shareholders, bondholders and secured creditors||Ownership||The United States Treasury, the Crown in Right of Canada, Old GM bondholders, and UAW union|
|$176 billion||Debt||$48 billion|