History of GM-General Motors

The history of GM, the world’s largest automobile manufacturer, began in 1908. The company was founded in 1902 by William Durant. Durant, his wise businessman, realized that the future was in the car, not the car. Initially, the company was founded as a holding company for Buick. Later this year, the company acquired Oldsmobile and the following year it owned Cadillac, Auckland and Elmore.

During the difficult times of the early 1900s, many car companies were in dire straits. The 1907 stock market panic put many SMEs in financial trouble. Many of these companies were run on credit from various bankers. This was a great opportunity for Durant, who started buying small car makers, and for companies that manufacture auto parts and car accessories. In 1908, these various companies were merged into one unit to create a new GM entity. This marked the exciting beginning of GM’s true history.

William Durant was a glamorous businessman, and his strange combination of genius and overkill caused GM to culminate and suffer financially. In 1910, bankers were forced to intervene to prevent GM’s collapse, and Durant was expelled from the company he founded. However, by 1911, the company had made significant progress in the international market and General Motors Export Company was established to handle sales outside the United States and Canada.

Durant succeeded in using another company he founded, Chevrolet, to regain power at GM in 1915. GM’s history from 1915 to 1920 is full of success. During this time, Cadillac was a huge success. In 1918, GM purchased Chevrolet Motors’ operating assets. But soon the United States was hit by a recession, and in 1920 Durant left the company again.

During the financial boom of the 1920s, GM’s history was virtually successful. With car sales reaching 4.5 million units, the car industry currently has three giants: GM, Ford and Chrysler. GM has now turned a talented engineer into a businessman. Alfred Sloan, later acclaimed for his marketing genius, was slowly on his way in GM’s ranks. His marketing genius breathed a new life lease into GM, which was beginning to be overshadowed by Ford.

Ford’s philosophy of giving the people the best value for their money offered little diversity. However, Sloan and GM were interested in providing more than a black box to the general public. Stylish colors, features and comfort have become the company’s new motto. GM also made a groundbreaking proposal. Now the general public can buy a car with credit. The five GM brands Pontiac, Cadillac, Buick, Oldsmobile and Chevrolet have begun to change each year, with a focus primarily on looks and style. This strategy paid a lot of dividends. Ford was pushed back into the backseat by GM again.

The Wall Street Crash of 1929 suddenly stopped all GM expansion plans for the foreseeable future. GM’s inventory has fallen quite badly. But by the early 1930s, GM had bounced back and bought a Yellow Coach bus company. In 1930, GM acquired Electro-Motive Corporation, a railroad vehicle manufacturer of internal combustion engines. For the next 20 years, GM-powered diesel locomotives ran on American railroads. December 31, 1955 is another landmark in GM’s history. GM has become the first company to earn over $ 1 billion annually.

There was a time in GM’s history when it was the largest company in the United States. GM’s history also shows that there was a time when GM was the only and largest employer in the world. But lately, GM is suffering from financial difficulties. In November 2005, GM posted a loss of $ 4 billion and about 30,000 employees were dismissed. Twelve plants have been closed.