General Motors Corporation SWOT Analysis

General Motors, the world’s largest automobile manufacturer, was first founded on September 16, 1908, in Michigan, United States. The global headquarters of the General Motors is located in Detroit. The company employees more than 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners manufacture cars and trucks in 31 countries of the world. The SWOT analysis of General Motors is given below. 




  1. On the basis of sales, GM is ranked as the biggest U.S. automaker and the world’s second-largest manufacturer for 2008.
  2. General Motors is listed the third-highest in 2008 having globally revenues among auto producers on the Fortune Global 500.
  3. General Motor’s biggest achievement globally has been its accomplishment in China. In China the revenue of GM rose by 66.9% in 2009 and it captured 13.4% of the market.
  4. In the first 7 months of 2010, sales of GM increased by 13 percent, including fleet and retail sales. Fleet sales for the year 2010 increased by 53%.
  5. General Motors invested $250 million to build a research facility in Shanghai to expand alternative fuel vehicles and hybrid cars.
  6. GM produces various flexible-fuel vehicles that can function on gasoline, E85 ethanol fuel, or any mix of both.





  1. The financial and automotive industry crisis made the financial position of the company weak which results in the low stock prices. Therefore, the corporation filed for chapter 11 bankruptcy and reorganized as new entity. 
  2. The company has taken high loans from the government and other financial institutions. The payment of this loan is also a burden for the organization.
  3. Through the first 6 months of 2008, General Motors lost $18.8 billion. By October 2008, its stock had declined by 76 percent.
  4. From 2007 to 2008 the revenue of the company dropped by 45 percent in the U.S.
  5. General Motors proclaimed removal of lifetime health payback for about 101,000 of its white collar retirees in 2008.
  6. GM is not able to respond well to the global competitors such as manufactures from Asia and Europe.
  7. General Motors has lost a major market share for the last few years. For example in 2009, the company lost 19.8% market share in North American business.





  1. Produce fuel-efficient, smaller, and higher-quality models that can attract the consumers.
  2. Chinese government condensed automotive taxes in order to encourage declining sales.
  3. In February 2009; citing declining manufacturing numbers, the State Bank of India decreased interest rates on automotive loans.
  4. Establish or Equip facilities to manufacture ‘advanced technology vehicles’ that would meet up certain fuel economy and emissions standards.
  5. One of the big opportunities is to shift manufacturing to other amenities in order to produce in-demand vehicles. Manufacturing could be done in those countries where the labor as well as material cost is low. 
  6. Diversification in other related and unrelated products or shifting to the hybrid electric engines.
  7. The purchasing power of consumers is increasing due to end of financial crisis 2007-10.





  1. The automotive industry crisis of 2008-2010 was the big downturn. Now it is challenge for industry players to recover.
  2. The financial crisis of 2007-10 caused by a liquidity deficit in the U.S banking system resulted decrease in consumer wealth.
  3. The crisis mainly felt in the U.S and also affected Asian and European automobile manufacturers.
  4. Car companies from North America, Europe, and Asia have implemented innovative marketing strategies to attract disinclined consumers.
  5. Major producers, including the Toyota and Big Three offered significant discounts across their lineups.
  6. North American consumers shifted to more fuel-efficient and higher-quality product of European and Japanese automakers.
  7. Environmental politics and allied anxiety concerning carbon emissions have sharp sensitivity to environmental protection worldwide and gas mileage standards.
  8. U.S manufacturers are facing soaring gasoline prices, health care costs for an aging workforce, dependence on declining SUV and eroding market share.
  9. The company is facing very high labor and raw material cost as compared to Asian manufacturers.   
  10. GM is also facing criticism on its culture and corporate practices. In 2007, its employees union went on the first countrywide strike due to which a transmission facility and two car assembly plants were closed down.

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