Case Study Of General Motors Company

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1.0 Introduction
General Motors Company (GM) is an American multinational corporation, which is also the world's largest full-line vehicle manufacturer and marketer that headquartered in Detroit, Michigan. The company designs, manufactures, markets, and distributes vehicles and vehicle components, and provides financial services. It was founded in September 16, 1908 as a holding company for McLaughlin Car Company of Canada Limited and Buick which based in Flint, Michigan. As a part of its 2009 bankruptcy restructuring, the current company, General Motors Company LLC ("new GM"), was formed after the bankruptcy of General Motors Corporation ("old GM"). The majority of the assets of "old GM", including the name "General Motors", is acquired by
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Jenner & Block law firm's chairman, Anton Valukas, investigated how and why GM failed to recall cars it produced while knowing they had defective ignition switches for over 10 years. In addition, GM had recalled an amount of 3.16 million defective vehicles across seven of its models on June 2014 and the total of recall cars in year 2014 exceed 20 million (Wolff, 2014).
The author further stated that GM’s CEO, Mary Barra admitted the company failed to recognize, take responsibility for, and act properly while facing life-threatening defects in millions of automobiles it sold since 2002. Isidore and Perez (2015) claimed that GM employees were acknowledged the problem with the ignition switch that could shut off the car while it was being driven, disabling the airbag, power steering and power brakes, and putting the lives of drivers and passengers at stake. The failure of GM to handle the recalls in a responsible manner brings into question their business ethics. Fielkow (2014) studied that a cost culture was created by GM's internal problems that could justify saving a few cents on a critical repair. GM’s CEO described the old GM whose culture weighed costs against improved safety led to a cost-benefit
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According to Quinn (2007), the strike involved around 73,000 US workers and last about 21 days. The reason last for the longer period is because fall into deadlock situation.GM spokesman thought that it was too complicated to bargain and it subsequently impact job security of US workforce and survival of firm. While from stands of UAW president Ron Gettelfinger, they think that it was their right to rise out those issues regarding worker’s benefits which they deserve for such as job security, wages and new

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