General Motors Essay -- Auto Industry

US automobile intentness began at the end of the 1800s and by the 1890s one out of seven jobs and one out of six businesses owed their existence to the automobile. Also this industry was the largest single customer for many blunt materials but now With analysts debating whether or not the American economy is already in a recession, the big three automakers in the US in particular General Motors are sharply scaling back production. The facts described by Danny Hakim in an article (G.M. Sees a Loss Near $1 Billion Stock Falls 14%) published in NYtimes on March 17, 2005 say that announcement by GM about losings of almost a billion dollars for last six month dropped its per centum to the lowest level in more than a decade. Also it is considered to be ever biggest single day loss since 1987, as GMs share lost 35 points on Dow Jones. GM once considered as strongest among big three is now way behind in the zip with the plans to cut off 10% production of cars in North America. Investor s make believe lost their confidence in GM. Market researchers and analysts are also moving ridge red flags. Main reasons for GM crisis are crucial home industry and increasing health care cost, as party is providing health insurance coverage to almost 1.1 million people in America. Despite all these facts, companys chief executive Mr. Wagoner has neither yet inform any serious plans to overcome this situation nor has he shown any designing to change their corporate strategy.Globalization is the first concept which c...