General Motors

Case Study # 114232

General Motors

The paper discusses the company "General Motors" one of the nation"s biggest car manufacturers and explains why it is one of the poorest performing companies in today's economy.

1,761 words () | 7 sources | MLA | 2009 United States

Paper Summary:

The paper discusses the biggest car manufacturer, General Motors. The paper tells us that the company is in a horrible situation due to several internal and external problems. The paper explains that internally the corporation constantly battles with the United Auto Workers Union and pays outrageous wages and pensions in order to prevent fatal strikes. The paper also tells us that the company has to adjust to changing demands of the consumer and this causes tremendous problems. In addition, the paper notes that another problem that impacts General Motors is the unemployment rate, as people who are unemployed do not want to buy cars.

From the Paper:

"While the workers are working at the plants, production is not allowed to dip below eighty percent; if it does General Motors pays stiff penalties. After the laborer retires, they will make up to ninety percent of their contracted pay. General Motors is being beaten up by the UAW, no company can afford to pay its retired workers ninety percent of their one hundred fifty thousand dollar a year salary and its current salaries of employees and still expect to stay afloat, or in General Motors case keep the engine running."

Sample of Sources Used:

http://www.conference-board.org/economics/consumer.cfm
http://www.investopedia.com/terms/d/discouraged_worker.asp
http://investopedia.com/rotate.aspx?invsection=home&backurl=http%3a%2f%2finvestopedia.com%2f
http://perotcharts.com/2009/02/unemployment-rate-continues-to-climb-january-2009/
http://www.economicsnapshots.com/archives/2008/snap20080625.htm