Assignment #5 General Motors
DeAndre Daniels
Strayer University
Financial Management
FIN 534
Dr. Ron
06-September-2011
Summary
This report discusses General Motors Corporation, one of the largest auto manufacturers globally, manufacturing cars and trucks in 34 countries and its subsidiaries. This assignment is an analysis of General Motors Corporation’s financial stability. It is hoped that these findings illustrate the strengths and weaknesses of the company’s common stock as a potential investment opportunity. GM currently focuses on four brands as well as strategic joint ventures with other automotive brands worldwide. GM operates under the core competencies of technology, leadership, large …show more content…
Through its purchase of substantially all of the assets and assumption of certain liabilities of Old GM in connection with the 363 Sale, General Motors launched a new company with a strong balance sheet, a competitive cost structure, and a strong cash position, which some believe will enable GM to compete more effectively with U.S. and foreign-based competitors in the U.S. and to continue its strong presence in growing global markets (finance.yahoo.com) In particular, the new GM acquired assets that included Old GM’s strongest operations, and believe the company now has a competitive operating cost structure, partly as a result of recent agreements with the International Union, United Automobile, Aerospace and Agriculture Implement Workers of America (UAW) and Canadian Auto Workers Union (CAW).
GM’s new vision is to design, build and sell the world’s best vehicles. Executive leadership and employees are now committed to: | • | | Building its market share, revenue, earnings and cash flow; |
| • | | Improving the quality of GM cars and trucks, while increasing customer satisfaction and overall perception of its products; and |
| • | | Continuing to take a leadership role in the development of advanced energy saving technologies, including advanced combustion engines, biofuels, fuel cells, hybrid