General Motors Essay -- Auto Industry

US automobile industry began at the end of the 1800s and by the 1890s mavin 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 raw materials but now With analysts debating whether or not the American economy is already in a recession, the big three automakers in the US especially General Motors are sharply marking back production. The facts described by Danny Hakim in an article (G.M. Sees a Loss Near $1 Billion Stock Falls 14%) produce in NYtimes on March 17, 2005 say that announcement by GM about losses of almost a billion dollars for last six month dropped its share 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 race with the plans to write out off 10% production of cars in North America. Investors have lost their confidence in GM. Market researchers and analysts are also waving red flags. primary(prenominal) reasons for GM crisis are crucial home industry and increasing health care cost, as company is providing health coverage to almost 1.1 million mint in America. Despite all these facts, companys chief executive Mr. Wagoner has neither yet announced any serious plans to overcome this mail service nor has he shown any intention to change their corporate strategy.Globalization is the first concept which c...