Question
General Motors (GM) has been a global leader in automotive manufacturing for the last several decades. They have become a market leader as it relates
General Motors (GM) has been a global leader in automotive manufacturing for the last several decades. They have become a market leader as it relates to their R&D positioning and have strategically positioned themselves with unique niches, such as with their early adoption of OnStar, a third-party vehicle support service, and through the execution of some of their critical international brands and partnerships. Through our analysis, we determined GM's financial sustainability by reviewing their business structure and analyzing their financial and accounting ratios compared to similar companies within the industry, including Ford, Toyota, & Stellantis Automotive brands.
Section 1: Strategic Analysis
1.1: Overview of how General Motors Makes Money
General Motors Company (GM) is a global automotive manufacturing company headquartered in Detroit, Michigan, with a core competency in designing, manufacturing, and selling various vehicle styles, brands, and automobile parts. GM currently stands as the 2nd top-producing US automaker and is within the top ten global auto manufacturers (Confino). Currently, GM has several business arms that serve as the corporation's major financial drivers. GM North America (GMNA) serves as the US arm that meets auto consumer demand for the Buick, Cadillac, Chevrolet, and GMC brands. GM International (GMI) supports global consumer demand under the Buick, Cadillac, Chevrolet, GMC, and Holden brands and equity positions in other companies that align with the Baojun, Buick, Cadillac, Chevrolet, and Wuling brands, primarily in Asian markets. GM also sells a variety of offerings to fleet customers, including rental car companies, leasing companies, and government entities(General Motors).
Outside of their manufacturing divisions, GM also owns and gains revenue through GM Financial, a financial firm that provides consumer auto loans. GM also owns a subscription-based service called OnStar, which includes navigation, diagnostic, and emergency support services for auto consumers (Mcfarlane)
GM Revenue from Sales for 2020 GMNA GMI Total Auto Revenue GM Financial 2020 Total $96.73B $11.58B $108.66B $13.83B $122.48B
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started