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Cyclical Rise and Fall of Gm

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Submitted By jsalvucci
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| The Cyclical Rise and Fall of GM | | | | |

This paper will touch on the history of GM dating back to 1899 with a history of boom and bust all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. |

Recently in the news there has been an alarming fact about General Motors automobile products that have caused a loss of property and more importantly loss of lives, while most admit a simple design flaw could’ve been repaired with a $0.57 switch (foxnews.com, 2014, 1 Apr). This paper will touch on the history of GM dating back to 1899 with a history of a boom and bust cycle all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since.
The History of General Motors Corporation, the one-time “largest automaker in the world” had its start in 1899. At that time over one thousand companies attempted to improve the “horse drawn carriage” to that of an automobile and failed. William Crapo Durant was in the horse carriage business in Flint Michigan since 1886, selling over 75,000 in 1895. In 1904 Durant bought into the Buick Motor company where many other auto makers had operations in Flint, MI; Chrysler, Buick, Nash to name a few. The economic downturn of 1907 bankrupted many of the smaller auto manufacturers and to protect the company, Durant sought out Henry Ford and Ransom Olds to discuss a possible merger. Both declined due to Durant’s lack of capital (Durant, 2004, p 71-73). Durant, instead of a merger, bought several smaller companies and founded General Motors on 16 September, 1908. By 1910 the company owned 20% of the American auto industry by purchasing smaller competitors while incurring significant debt.
Shortly after, Durant was removed from his position as the head of GM and replaced by a 5 person board of trustees. Durant went on to start another company and…...

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