Essay on General Motors - Financial Ratio Analysis

General Motors - Financial Ratio Analysis I. General Motors History Highlights In its early years the automobile industry consisted of hundreds of firms, each producing a few models. William Durant, who bought and reorganized a failing Buick Motors in 1904, determined that if several automobile makers would unite, it would increase the protection for the group. He formed the General Motors Company in Flint, Michigan, in 1908. Durant had bought 17 companies (including Oldsmobile, Cadillac, and Pontiac) by 1910, the year a bankers syndicate forced him to step down. In a 1915 stock swap, he regained control through Chevrolet, a company he had formed with race car driver Louis Chevrolet. GM created the GM Acceptance†¦show more content†¦That year GM sold its National Car Rental business to a group of investors led by former Chrysler executive William Lobeck. In 1996 the United Auto Workers struck at 2 GM plants in Ohio over the companys increasing its outsourcing of brake parts. The strike lasted 17 days, idling 24 of the automakers 29 North American plants (reflecting the vulnerability of just-in-time supply chains), and ended with neither side satisfied. GM sued Volkswagen in 1996, alleging the German automaker encouraged former GM executive Ignacio Lopez to defect to Volkswagen with boxes of proprietary company information. The bitter dispute led to Lopezs resignation from Volkswagen and was resolved in early 1997 when VW agreed to pay GM $100 million and purchase $1 billion of parts from GM over 7 years. In 1996 GM spun off EDS (with a market value of $27 billion) to shareholders. Also that year GM agreed to sell 4 of its parts plants to Peregrine Inc. (formed by investment firm Joseph Littlejohn Levy) for an undisclosed amount. In late 1996 GM began producing Chevrolet Blazers in Russia. II. General Information Competitors BMW, British Aerospace, Chrysler, Daimler-Benz, Fiat, Ford, Honda, Hyundai, Kia, Motors, Mazda, Mitsubishi, Nissan, PSA Peugeot Citroen, Renault, Suzuki, Toyota, Volkswagen and Volvo. Nameplates Buick, Cadillac, Chevrolet, Geo, GMC, Oldsmobile, Opel/Vauxhall, Pontiac andShow MoreRelatedThe Financial Position Of Ford Motor Company1084 Words   |  5 PagesFinancial ratios are significant tools of measurement of the soundness and stability of a firm within its internal structures and operations. The computation of the various financial ratios enables a firm in evaluating its financial and market position relative to the industry competition. This paper aims to assess the financial position of Ford Motor Company in comparison with General Motors Company. The evaluation will consider the computation of ratios such as; liquidity ratios, profitabilityRead MoreGm Financial Report Analysis Essay1265 Words   |  6 PagesIntroduction General Motors Corp. 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