Top Challenges Facing General Motors

Within the last 10 years General Motors has had to face a variety of issues which they have never encountered previously. The first and possibly most prevalent issue facing the American auto maker is the serious drop in sales which continues to plague the company today. This drastic drop has been blamed on a number of things but the 2 biggest causes have been the turbulent economy that is currently in place in the U.S., as well as all over the world.

The second commonly accepted cause of the major decline in GM sales is the simple fact that within recent years people have made a drastic shift to buying foreign made cars. Many consumers feel that the foreign made cars, such as Honda and Toyota, are more reliable, better looking and more worth the money that would have to be spent. Customers have also made the switch towards imports due to dramatically higher resale values as compared to those of American made cars.

Currently GM, Daimler-Chrysler and Ford, which make up the “Big 3” American auto makers, have announced talks trying to secure a multi-billion dollar financial “bail-out” from the federal government. This bailout is looking more and more like it will become a reality, but if for some reason it doesn’t formulate, GM, as well as the other American auto makers stand a very good chance of having to file for bankruptcy and possibly have to shut down operations in certain divisions if not as a whole.


GM has also been the focus of a large amount of negative publicity in the media due to the number of factories and assembly plants that the company is currently having to shut down, or make major down sizes in. This barrage of negative publicity is also linked back to the major economic turmoil surrounding the company and the U.S.

Photo Credit:
Photo applied from Google Images.

Information Citation:

Vlasic, B. (2008). Each Player in Big Three Is Devising Its Own Plan. New York Times


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