The Chinese GM Essay Example | Topics and Well Written Essays - 2750 words

The Chinese GM - Essay Example Moreover, the automobile industry spends large amount of money in research and development purposes. Like the modern electric or hybrid cars are the latest creation of the automobile industry (LOC, 2007). A: Background of General Motors General Motors (GM) is a popular automobile company based in America. The company is a giant multinational firm, with its headquarters in Detroit Michigan. The company manufactures and sells vehicles along with vehicle parts. The firm also engages in the trading of financial services. The company is a giant car manufacturer and provides its services in more than 37 countries across the world. Chevrolet, Cadillac, Opel etc ere the various brands under which GM sells its cars. The company employs more than 212000 individuals in the global economy. Right form 1931 to 2007 GM has been awarded as the leading car producer in America (GM, 2013). Wholly owned subsidiary companies sell the cars of GM in most of the economies outside America. However, it should be considered that the company sells its cars in the emerging market of China via joint ventures. The company claims in its vision that by enjoying the source of large financial base, it would offer best cars to its customers and would always provide utility to its partners, employees and shareholders. The cars and trucks manufactured and traded by GM are not only said to be of efficient in quality and cost, but are also fuel economic and safe. It makes sure that its manufactured vehicles are never subjected to recalls in the market. By providing good cars with modern unique designs, the company attempts to build lifelong relations with its customers. This helps the company park potential affluent clients, who tend to repeat their purchases in GM (Creswell, 1998). The company invests large sums of money in research and development purposes. This helps it to make more technologically advanced models of cars and invent new models of vehicles. GM provides long term value in investment s to all its investors. The big business of the company continuously expands in terms of scale and scope, which gives complete confidence to the shareholders to invest in the shares of the company. Moreover, 212000 workers in the company, makes trading in more than 20 time zones in the globe possible, by acquiring the capability to communicate in more than 50 languages (Murphy, 2013). The company makes changes in its business operations according to the external business conditions in the global economy. It is empirically observed that since the last few years, the price of petrol is soaring significantly, moreover the extent of air pollution created by the traditional cars are also increasing rapidly. Since cars and petrol are complementary products, the demand for cars in the current market is falling due to the rise in price of petrol. Taking into consideration all such factors, GM has now started manufacturing electric cars that would run by battery or power. Such cars would not only be sustainable but would also avoid its dependence on petrol (Nieuwenhuis & Wells, 2003). B: Brief History of General Motors In July 13th 1956, China Central Committee along with the active support of Soviet Union established the first automobile manufacturing company in China named as First Automobile Works (FAW). Changchun China