Founded in 1908, General Motors has been one of the largest corporation and the second largest automaker in the world coming after Toyota. For 77 consecutive years from 1931 to 1908, GM has been a leading automaker and marketer as ranked by the total number of units sold yearly. General motors have also been a leading employer not only in the United States but also in other parts of the world where it operates. However, the company has been seriously affected by the current economic crisis. The Detroit Three, led by General Motors have been a backbone of the United States economy and there eminent collapse in the current economy crisis is likely to have negative impacts on the United State’s …show more content…
With such large number of employees, GM has been keen on it human resource management. However, its efforts to attract qualified workers has brought a lot of financial constrain to the company. GM has negotiated with United Autoworkers which is a union body housing all autoworkers in the United States. Compared to other foreign auto manufacturers, GM pays its employee higher salaries which has been one of the factor leading to its economic downturn. The company has been providing medical care, education, continuous training, health and safety measures, and many others (Loornis, 2006).
The current situation in the GM
The current economic crisis is having a great ramification on various sectors of the economy in the world. However, the American auto industry seems to have been hard hit by the changing economic crisis. Except for the foreign manufactures, the Detroit Three are faced with the threat of bankruptcy (Ikenson, 008). The problem facing the General Motors and the whole American auto industry is not new and has persisted since the 1980s. Since the end of the Second World War, American auto industry had experienced a dramatic growth expanding to different countries in the world. General Motors