GM in Trouble
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Case Details:
Case Code : BSTR320
Case Length : 20 Pages
Period : 2008-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : General Motors
Industry : Automobiles
Countries : US
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Financial Aid for GM?
On December 02, 2008, GM submitted a plan for long-term viability to the US Congress in order to secure financial aid from the government. The company stated that this aid was necessary for it to survive a decline in sales due to the credit crisis and consequent global recession. In the plan, GM announced that it would reduce its total US workforce from 96,537 in 2008 to about 65,000 salaried and unionized workers by 2012. The total number of US plants would also be reduced to 38 by 2012 from 47 in 2008. GM had already cut nearly 50 percent jobs from the 2000 levels of 191,465 people...
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The Trouble Continues...
GM expected the ongoing tight credit situation and global economic slowdown to continue to affect auto sales in the year 2009 as well. Jonathan Browning, Vice President, Global Sales, Service and Marketing at GM, said,
"The challenges in the global financial markets, including credit tightening, the drop in commodity prices, and economic uncertainty continue to negatively impact overall demand for new vehicles."...
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Exhibits
Exhibit I: Highlights of GM's Restructuring Plan
Exhibit II: GM's Vehicle Models
Exhibit III: GM's Financial Performance (2000-04)
Exhibit IV: GM's Financial Highlights (2005-07)
Exhibit V: Comparison of Financial Results of GM (Third Quarter of 2008
and 2007)
Exhibit VI: Market Share of GM in the US (%) (1991-2008)
Exhibit VII: Stock Price Chart of GM (February 1999 - December 2008)
Exhibit VIII: Restructuring Targets as Specified in Secured Term Loan
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