General Motors Problems

US machinemobile industry began at the end of the 1800s and by the 1890s one out of seven jobs and one out of sextuplet businesses owed their existence to the automobile. Also this industry was the largest single customer for some(prenominal) raw materials but without delay With analysts debating whether or not the American economy is already in a recession, the big tierce automakers in the US especially General Motors are aggressively scaling back production. The facts described by Danny Hakim in an article (G.M. Sees a Loss Near $1 one million million million; Stock Falls 14%) published in NYtimes on March 17, 2005 say that announcement by GM intimately losses of almost a billion dollars for last sixsome month dropped its share to the lowest level in to a greater extent than a decade. Also it is considered to be ever biggest single solar day loss since 1987, as GMs share lost 35 points on Dow Jones. GM once considered as strongest among big trine is now way behind in the race with the plans to hack off 10% production of cars in North America. Investors watch lost their confidence in GM. Market researchers and analysts are similarly waving red flags. Main reasons for GM crisis are life-or-death home industry and increasing health care cost, as company is providing health coverage to almost 1.1 million mass in America. Despite all these facts, companys chief executive director Mr.

Wagoner has neither yet announced any unsafe plans to overcome this situation nor has he shown any intention to adjustment their corporate strategy. Globalization is the first concept which could be related to to this article. Due to globalization, markets have expanded but these expended markets are now contributing towards the economic problems of the United States. US companies especially the auto industry are no longer enjoying monopolistic powers in business world. Local auto industry is facing a big threat from foreign companies like Toyota, Nissan and Honda. General Motors, which controlled well-nigh half the American market as recently as late 1970s, is now finding it difficult to... If you want to worry a full essay, order it on our website: Orderessay

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