The History of GM - General Motors

The history of GM, the world's largest automaker, sawthe 4.5 million mark, and the auto industry now had
it's beginning in 1908. The company was founded bythree giants - GM, Ford and Chrysler. GM now had a
William Durant in the year 1902. The shrewdbrilliant engineer turned industrialist at its helm. Alfred
businessman that he was, Durant realized that theSloan who was later acclaimed for his marketing
future lay with cars and not carriages. Initially, thegenius had slowly worked his way up among the
company was founded as a holding company forranks of GM. His marketing genius breathed a fresh
Buick. The latter part of the year saw the companylease of life into GM that was beginning to get
acquiring Oldsmobile, followed by the possession ofovershadowed by Ford.
Cadillac, Oakland and Elmore in the very next year.Ford's philosophy of giving the public the best value for
Many of the motor companies were in dire straitstheir money offered little variety. But Sloan and GM
during the difficult years of the early 1900's. The stockwere interested in providing the public with more than a
market panic in 1907 put a lot of small companies intoblack box. Stylish colors, features and comfort
financial distress. Many of these companies werebecame the new motto of the company. GM also
running on credit from various bankers. This was amade a path-breaking offer - the public could now buy
golden opportunity for Durant, who proceeded to buya car on credit. The five brands of GM - Pontiac,
smaller car builders, and companies that built car partsCadillac, Buick, Oldsmobile and Chevrolet began
as well as car accessories. In 1908, these variouschanging every year with the focus being directed
companies were folded into a single unit, thus creatingmainly at looks and style. This strategy paid rich
the new GM entity. This marked the exciting beginningdividends. Ford was pushed to the backseat again by
of the true history of GM.GM.
William Durant was a flamboyant businessman whoseThe great Wall Street crash in 1929 put an abrupt stop
curious mix of genius and over-reaching took GM bothto all expansion plans at GM for the time being. Stocks
to its heights as well as plunged it into financial distress.of GM fell rather badly. But, by early 1930's GM
In 1910, bankers were forced to step in to preventbounced back and bought the Yellow Coach bus
financial collapse of GM, and Durant was removedcompany. In 1930, GM bought Electro-Motive
from the company he had founded. But by 1911, theCorporation, the internal combustion engine railcar
company had made enough advances into thebuilder. The next 20 years saw GM powered diesel
international market that the General Motors Exportlocomotives running on American railroads. December
Company was established to handle sales outside the31, 1955 is another landmark in the history of GM. GM
U.S and Canada.became the first company to make more than a billion
Durant managed to use another company he formed,dollars in a year.
Chevrolet, to come back to power in GM during 1915,There was a time in the History of GM when it was
and the history of GM from 1915-1920 is full ofthe largest corporation in the US. The history of GM
successes. During this time, the Cadillac became wildlyalso shows that there was a time when GM was the
successful. In 1918, GM bought the operating assets ofsingle largest employer in the world. But, in recent times
Chevrolet Motors. But, soon America was hit by aGM has been beset with financial woes. November
power recession and in 1920, Durant again found2005 saw GM booking a $4 billion loss and about
himself out of the company.30,000 employees were laid off. 12 plants were closed
During the financial boom in the 1920's, the history ofdown.
GM virtually glowed with success. Auto sales reached