GM in Trouble


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
  
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

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

To download GM in Trouble case study (Case Code: BSTR320) click on the button below, and select the case from the list of available cases:





Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies


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.

<< Previous

"Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy-like."1

- Analyst at Deutsche Bank, in November 2008.

"GM has been in trouble for years. It is just pure fiction to say that the reason why the auto industry is now in trouble is because of the financial crisis....If you start spending on General Motors it will be a black hole."2

- Anil Kashyap, Edward Eagle Brown Professor of Economics and Finance, University of Chicago Booth School of Business, in November 2008.

GM Asks for Financial Aid

On December 02, 2008, General Motors Corporation (GM), the second largest automaker in the world, sought financial help from the United States (US) government, to run its operations. The company asked for financial aid amounting to US$ 18 billion - US$ 4 billion before the end of 2008, US$ 8 billion in the first quarter of 2009 and another US$ 6 billion in credit line if the car market did not improve. Frederick Henderson (Henderson), the President and Chief Operating Officer (COO) of GM, said, "Without support, frankly, the company can't fund its obligations."3

Analysts were of the view that one of the major reasons for GM's poor financial condition was the company not being able to quickly bring out vehicles that met changing customer needs.

GM in Trouble - Next Page>>

1] "Financial Crisis on General Motors,"http://financesteer.com, November 24, 2008.
2] Vivek Kaul, "General Motors Should Not be Bailed Out,"http://www.dnaindia.com, November 17, 2008.
3] "GM Submits Plan for Long Term Viability to the U.S. Congress,"http://media.gm.com, December 2, 2008.

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.