Share
Explore BrainMass

General Motors Today: Prospects and Challenges

Giving the current situation with General Motors, our team is recommending that they (GM) reduce their current operations in order to maximize profits.

In 250 words, analyze the effects of government policies, social diversity, and business ethics on this recommendation and explain what would be the impact of this in the future.

Solution Preview

General Motors was and continues to be the icon of American manufacturing. At its peak it employed more than 250000 people and had close to 50% share in the American automobile market. Today that share is down to less than 20%. GM filed for bankruptcy and are hiving off Pontiac, GM Europe, Saturn, Saab, and Hummer. Most economists think that this is the step in the right direction.

What the government has done over this period is pushed GM towards this process. In the words of GM CEO Fritz Henderson gone are the days when GM would hoist 15 cars on the market and hope that 5 of them work! (Source: A Reader Q&A on GM Bankruptcy, NY Times, June 2, 2009.)

Here are the steps that the government has taken so far to save GM (Source: http://www.forbes.com/feeds/reuters/2009/06/01/2009-06-01T095355Z_01_L1492601_RTRIDST_0_GM-BANKRUPTCY-TIMELINE.html):
1.Dec 17, 2008: GM is to receive $13.4 billion from the government in emergency loans
2. Feb. 17, 2009: GM and Chrysler request nearly $22 billion in additional U.S. government loans.
3. March 19, 2009: The ...

$2.19