Essay on Gm Financial Report Analysis

1453 Words Apr 29th, 2008 6 Pages

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. General Motors was founded 1908, in Flint, Michigan and currently employs approximately 284,000 people around the world. GM's global headquarters is the Renaissance Center located in Detroit, Michigan, USA, They currently manufacture their cars and trucks in 35 different countries. Its European headquarters are based in Zurich, Switzerland, and its Holden headquarters are located in Melbourne, Victoria, Australia. In 2007, 9.37 million GM cars and trucks were produced globally under the following 12 brands: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and
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The recession of GM was caused by the entity targeted the wrong market; the inefficient utilized the asset and positioned their new products in the wrong market segmentation. Even in the end of 2006, the rumor was about GM was applied the bankruptcy protection.

Indeed, there were the considerable reasons for GM was getting depression. Firstly, GM targeted the wrong products into the wrong market. Before 2000, GM mainly product the huge size vehicles engine which brings the majority of revenue for GM, however, with the price of crude oil raise and the more stricter requirement of environmental conservation, the demand of the huge size vehicles engine of GM decreasing and it brings a big lost within the organization, combined with the development of the automakers industry of Japan. Form the above financial report analysis, we can see that the net profit of GM decreasing by maintain its sale was occurred in 2005. At the time, Toyota was selling 809 millions vehicles; GM was selling 920 millions vehicles. However, the equity ratio of Toyota was 9% and the equity ratio of GM only was 3% respectively.At the beginning of the year, the announcement declared that Toyota enhanced its selling to 906 million

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