Tuesday, November 25, 2014

From Buick to Hummer: GM’s Brief History

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Founded in September 16, 1908 by William C. Durant, General Motors Corporation has been in the car manufacturing industry for 106 years now. They first started with 25,000 units of cars and trucks. After 2 years, GM’s founder, Mr. Durant, incorporated Cadillac, Pontiac, Buick, Olds, AC spark plug, and champion ignition into the company. Such move increased the business organization’s sales by 60 per cent. The bad news, however, was that earnings straggled and as a result, Durant was ousted from the company he built as it continued to sink in debt.

By 1916, GM was incorporated. From General Motors Company, it became General Motors Corp. In the same year, Durant was able to regain control over the business enterprise but three years later, his luck ran out. He then resigned and filed personal bankruptcy.

As a way to increase earnings, GM crafted a product policy that aimed to distribute their line of products to five different groups of car buyers. Such tactic worked and by 1921, 12 per cent of the US car market belonged to the company.

The success of GM continued through the years under the management of several presidents and chief executives. They were able to buy out several companies abroad and even built partnership with Toyota.

Sad to say, in the year 2008, gas prices soared high, affecting truck sales big time. The corporation shifted from trucks to small automobiles in order to save money. The brand Hummer was put up for sale and factory shutdowns and layoffs were done.

At present, GM has already been back on its feet. Rumors have it that they have already beaten Toyota as the world’s number 1 car manufacturer. This only proves that GM is here to stay and will continue to be one of the best car makers in the world no matter what obstacle it will need to face.

Trivia Info Resource: www.greatlakesautosupply.com

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