General Motors

During 2009 General motors was in very bad shape and forced to file for CHapter 11 bankcruptcy and what happened after that has made the US treasury and the Canadian goverment the majority owners of the company. This is a result of the fact that the US goverment invested $57.6 billion in TARP money in the company to save it. General Motors figured heavily in the news during the spring and summer of 2009, but how did this company grow into the giant that it is today? In this article, we will take a brief look at the history of General Motors.

The company was first formed in Flint, Michigan in 1908 as a holding company for buick then owned by William C. Durant. General Motors then purchased Oldsmobile the same year it was formed and the next year they bought cadillac, Cartercar, Elmore, Ewing, and Pontiac (then known as Oakland). The Reliance Motor Truck Company and the Rapid Motor Vehicle Company were also purchased in 1909, and one year later Welch and Rainier become parts of the fast growing GM.

The acquisitions meant taking on large amounts of debt and in 1910 Durant lost control of GM to a bankers trust, but in 1916 he returned as head of the company after a successful stock buy back campaign backed by Pierre S. du Pont. Once Durant has regained control he incorporated the GM company as the General Motors Corporation. The GM headquarters has always been located in Flint, but in the mid-1920s it was moved to Detroit where it has remained to this day.

During the 1920s and 1930s General motors helped form the greyhound buss lines and bought the Yellow Coach Bus company. GM also bought streetcar companies through subsidiaries and replaced this rail-based mode of transportation with buses as well.

Over the years, GM acquired or gained controlled over a number of foreign companies and brands, such as British Vauxhall Motors, German automobile manufacturer Adam Opel AG, and Austrian Holden. After producing armaments, vehicles and aircrafts for both Allied and Axis purchasers during World War II, General Motors grew into one of the largest employers in the world during the early 1950s. In 1955, it became the first U.S. corporation to pay over $1 billion in taxes.

During the early 21st century, over 8 million GM cars and trucks were sold globally under the brands Chevrolet, Cadillac, Buick, GMC, GM Daewoo, Opel, Saab, Vauxhall, Pontiac, Holden, Saturn, Wuling, and Hummer. GM acquired Hummer from AM General Corporation in 1998. The Hummer H2 and H3 are devloped by GM after they boguth the brand. They are both models that are meant to be more street friendly and less off-road oriented and there is even a stretch Hummer. The hummer limo has become very popular for proms, parties and special events. The Hummer has been a very popular brand but it has caused GM to recieve a lot of critic for selling a gas-gizzling monster that destroy the environment in the US. as well as abroad.