General Motors and Honda Financial Analysis
This text seeks to compare the finances of General Motors (GM) to those of Honda Motors (HMC) in an attempt to determine why the latter has been more successful than the former. In so doing, the paper will amongst other things utilize a number of financial management concepts and measures of performance including but not limited to financial ratios and managerial capabilities.
Although the biggest headache for GM right now could be its stock price which is essentially on a retreat, the company's second quarter earnings were also not impressive. According to Mespell (2012), GM's "second quarter earnings plunged by nearly half." The company's market share has also been on a downward trend so far.
GM's lagging performance can be attributed to a number of things. To begin with, the number of new models the company has churned out in recent times are quite a few (in comparison to some of its competitors). The company has thus done little to excite buyers on this front. Further, in my opinion, GM has been reluctant to embrace a new cast of management. Indeed, even after the government bailout, GM chose to retain quite a number of its former executives in top management positions with the outgoing chairman being replaced with his vice. This in my opinion did little to turn around the company's...
General Motors Company, commonly called as GM is one of the largest automobile manufacturers in the world. It is an American multinational corporation headquartered in Detroit, Michigan. It has business operations in more than 157 countries around the Globe. It was founded in 1908 as General Motors Corporation; and renamed as General Motors in 2009. The top brands of the company include Chevrolet, Isuzu, GMC, Jie Fang, Cadillac, Vauxhall, Baojun,
" Conclusion Overall GM is currently confronting some of the most difficult obstacles that it has ever had to overcome. Government intervention is no guarantee that the company will be able to overcome these obstacles. Billions of dollars have been given to the company in an effort to save it from further demise. However, capital alone will not save the company, there must be a strategic effort of the management to properly
Although some external players, such as potential new executives, may prefer this plan, there is little evidence that the major stakeholders have interest in major culture change. The third alternative is to place emphasis on operational issues first and foremost. Under terms of its new deal with the UAW, GM will be closing plants and shedding workers, and it is trying to sell off some of its underperforming units (Hummer,
Still, the future stated goal of GM is to develop an electric or hybrid version in all of its existing brands lines -- Chevrolet, Cadillac, Buick and GMC. Outcome of changes GM's most notable success has been overseas, where it is currently ahead of all of its competitors in the rapidly expanding Chinese market. "While GM is outpacing Ford in overseas competition, GM cannot solely depend on China for growth. While
Ford Motor Company Business Analysis Ford Motor Company Ford Motor Company is 4th on Fortune 500 List and 4th on Global 500 List and is the 2nd largest auto manufacturer in the world. Ford Motor Company has the advantage of Ford Motor Credit however, due to Firestone tire recalls the prices are the lowest prices in years with cash reserves sunk to $4.1 billion and $13 billion on acquisitions with $3.5 billion
Direction of the Business During the economic downturn of the global economic crisis (2008-2010), General Motors (GM) was adversely impacted by a failure to downsize its operations and focus on core products. As Yip and Hult (2012) note, GM marketed too many models around the world at time when a consolidation strategy was needed. Toyota, for example, succeeded in focusing on core models and even though it sold fewer units it
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