The renowned company, General Motors presented a restructuring report to the Congress towards the end of 2008 on achieving sustainability through a restructuring process. This has been done in the face of the difficulties encountered by GM during the recent economic and financial crisis due to which it was forced to be placed under state control for a period of thirty nine days, from 1st June 2009.
It is now evident that the use of Chapter 11 of the U.S. bankruptcy law has not only been beneficial for the consolidation of the accounts of the international group, but has also reflected on its new strategy.
Thus, the actions envisaged by General Motors to improve its structure and its management, are now of a reasonable size, include streamlined processes and industrial and commercial methods that focus on the essentials. CEO Fritz Henderson noted that GM should focus in increasing its revenue.
We will discuss in detail the various strategic and corrective measures that General Motors intends to implement with the aim of assessing its relevance. We will discuss the need for effective coordination of the group's restructuring plan and the strategy that will enable it to establish a portfolio of brands.
[...] In contrast, General Motors effectively exploits the flexibility of staff and industrial synergies to continue production of models bearing distinctive values like the Pontiac, which has always been competitive in the U.S. domestic market. GM's strategy is not greatly criticized; but it leads to questions about the GMC affiliate. It offers a range of large vehicles whose fuel consumption is very similar to that of the Chevrolet. It such a scenario, it should be possible for the holding company to reconcile these brands, and maintain both independently. [...]
[...] The efforts made in vain since November prompted the Group CEO Christian von Koenigsegg to announce: "We regret coming to the difficult and painful conclusion that we will not be able to complete the acquisition of Saab Automobile" further explaining that while "delays in the closure of the operation have led to risks and uncertainties that prevent us from completing our plans for the new Saab. This is perhaps for the best, in view of the knowledge that Koenigsegg has entered into alliance with the Chinese company BAIC to complete the transaction promising BAIC that it would also benefit from technology transfer in the future. [...]
[...] Industrial and commercial consequences At another level, the restructuring of General Motors in its reassessment has focused on the importance of partnerships . GM's participation in its joint venture with NUNMI Toyota is thus compromised since June 2009 due the phasing out of production models of the Pontiac. This has not only impacted its partner, but also the chief competitor as the joint venture gave them a level of competitiveness and profitability more important than it would have been without the synergy with GM. [...]
[...] Because it moves globally at the same level of sales that Porsche on the American market alone and that the tendency to buy efficient cars or hybrids continues (to the delight of Japanese and Korean firms), GM appears to have taken the right decision. The sales of the Hummer internationally may be compared to the level of sales that has been achieved by Porsche in the American market, and the demand for efficient cars and hybrids continues to rise, to the delight of the Japanese and Korean firms that manufacture them. [...]
[...] The challenge is intensified by the fact that the Directorate General Motors will be required to implement many reforms, all potential sources of disputes and social conflicts. GM must be able to justify future actions and be prepared to negotiate the conditions of some of them with key stakeholders. B. Measures regarding subsidiaries In the second step, the restructuring program will extend to subsidiaries overseas, with particular emphasis on Europe in which the Opel brand is spearheaded by GM. While the head of GM Europe was hitherto located in Zurich, Switzerland, a move is planned this year as part of the restructuring process. [...]
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