Report on Business Growth

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Report on Business Growth

General Motors co. is the world’s second largest automaker after Toyota. Founded in 1908, General Motors employ approximately 250,000 people around the globe. It manufactures cars and trucks in 34 countries, and was the world’s sales leader from 1931 to 2007. GM cars and trucks are sold globally under 13 brands; Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holde, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wulling. Just in 2008, more than 18 million of these cars were sold in more than 140 countries.

In 1990s, the economy in the USA was on the rise and General Motors gainer market share, making enormous profits from the sale of trucks and sport-utility vehicles. After 9/11 attacks, General Motors began its ‘Keep America Rolling’ to overcome the stock market decline. The campaign boosted sales, and forced other auto makers to follow.

In 2004, General Motors redirected funds from the development of sedans to development of light trucks and sport-utility vehicles. Soon after this decision, fuel prices increased by 50%, causing GM to start developing hybrid vehicles and introducing the best fuel economy in their vehicles.

In 2005, GM promoted sales through a discount to all buyers, to get rid of all 2005 buildup models, before introducing the 2006 models. However, the promotion did not help the company make more profit. General Motors had completely changed its marketing strategy since then. Nowadays all vehicle prices are lowered, but there are very little or none incentives.

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In 2008 rising gas prices resulted a 30% drop of sales of sport-utility vehicles which had been General Motors’ most profitable product. Decreasing of sales of SUVs resulted in a cancelation of a 2 billion dollars worth investment program for a new SUV platform.  During the first half of 2008, General Motors Corporation lost more than 18 billion dollars and by late October its stock had dropped by 76%. In only a year GM sales in the USA have dropped 45 percent in total. By the end of 2008, 2 of the GM’s companies were closed down, leaving only one ...

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