General Motors Corporation

Introduction

The business proposal presented here gives the detailed facts about General Motors Corporation. It presents the facts of the company profile, its achievements and the steps the company has taken in expanding to have its wings all worlds over. The proposal gives the detailed facts of the company’s association with other companies through partnership and joint undertakings to bring development and milestone achievement in the automobile industry. The proposal is directed to investors and companies willing to partner with General Motors in order to create wealth, profits and a superb profile in the industry. The proposal aims at guiding the investors while making their decision to join this winning team and bring outstanding change in the world.

Profile: General Motors Co (GM.N)

The company, General Motors Corporation, incorporated in the year 1908. The company is popular for its brands of vehicles operating all over the world. The vehicles are in the form of trucks, cars and other type of automobile. The company further provides automotive financing activities through its branch, General Motors Financial Company. The company’s automotive segments are GM North America, GM South America, GM Europe, GM South America and GM international Operations. The GMNA segment of the company develops, manufactures and markets different brands of vehicles going in different names and brands (Abrahams 1995). The company has partnered with different companies in the world over that helps it market its products in other parts of the world like Asia and Africa.

The company markets its products through a network of independent dealers authorized by the company and their respective governments in their area of operation. The dealers are distributors are wholesalers, distributors and dealers of different classes and classification. They are selected, and sign contracts with the company on agreed terms which ensure that both parties benefit at an equal platform. They deal with one or more products at specified agreement terms. They are allowed to offer services to customers on behalf of the company. They offer repair and maintenance services, accessories and new vehicles.

The GM financing program deals with purchasing of retail automobile installment sales.  The contracts are offered by GM and its partners attained through franchise and mergers in different markets. The financing mainly deals with buying and selling of used and new GM products in different markets in the world.  The financial wing also offers loans and grants to purchase GM products to companies and individuals ( Johnson and Turner 2009). The biggest branch of GM is the New York GM. It is the biggest vehicle manufacturer and employs about 325,000 in its industries all over the world. They are employed directly or indirectly through partnership companies. The company has industries in over 32 countries globally.

The GM Company has partnered with different companies in the world to bring outstanding success in the motor industries. Among the partners are the Italian Fiat Auto Spa, Isuzu Motors Limited, Japanese Suzuki Motor Corporation and Fuji Heavy Industries Limited. The companies are involved in offering of different GM services including sales, repair and maintenance of the GM products in different parts of the world. Recently, the company has acquired the largest share of Daewoo Auto & Technology Co. of South Korea. GM has further partnered with BMW AG of Germany to boost its technology in the motor industry. Other partnerships involving the company are those of Toyota, Suzuki, Shanghai Automotive Industry Corp. of China, AVTOVAZ of Russia and Renault SA of France.

The partnerships have brought considerable success to GM and its partners in that it has enabled the companies make exceptional sales all world over. An excellent example is the 2003 when the company set sales records in USA by selling over 2.8 million trucks and sports based vehicles. In the same year, it made a total sale of 1.3 million SUVs and a similar number of pick-up trucks. This would not have possible were it, not for partnerships with the different companies.

Partnership with BMW

The partnership between GM and BMW will be purely technological to bring advanced changes in the motor vehicle industry. The GM Company recognizes BMW for its technological know how in order to improve their products and efficiency to the consumers. The partnership between the two companies will automatically lead to mutual benefits to the two companies and investors. It is thus an excellent chance for the investor to reap from the modern technology in the automobile industry.

The two companies are giants in the vehicle manufacturing industry with each established in a different class and market. The GM is well established in North America and is a brand name in other parts of the world. Established and known for its ability and prowess for commercial based vehicles in these parts of the world. Its markets are strong and stable. The BMW, on the other hand, is a luxury brand in Europe and especially its home in German. In comparison, the two companies are not rivals but are equally strong. In such circumstances, any partnership will be something to celebrate and emulate (Canada. Parliament. House of Commons 2005).

The ability to penetrate the markets as partners will be comprehensible and easy as partners and will be viewed as a long term benefit to the companies. The GM Company will have ease penetrating the European market as a commercial trader while the BMW will have ease bringing luxury to America and other continents. This will benefit the investors, as each company will have accesses to different markets raising the share price and the general sales. This will enable both companies compete against their rival like Nissan and Chevrolet which have partnered to make an impact in the market.

The short term benefits will include improved manufacturing efficiency for both companies. The BMW is known for its ability in manufacturing fuel efficient vehicles while GM is known for the ability in commercial vehicles. The combination of these technologies will interpret to increased sales and efficiency. This will result in profits which will at the end of the day be directed to investors in this partnership.

Financial Implications

The companies will be able to save large amounts of money used in research and other operation costs through cost sharing and reduced taxation to the partner companies in the countries of operations. These funds will automatically be diverted to development and savings. It will also reduce on expenditure which would otherwise reduce the profit margins to the investors (Lewin 2004).

Recommendations

I recommend to the willing investors to take up this opportunity and be part of development in this important sector of the economy. The upcoming opportunity in the partnership can be termed as once in a lifetime opportunity to change their financial fortune and stand in history as on of the individuals who brought change to the automobile industry.

Conclusion

In conclusion, the partnership sounds as one of the best opportunity for the two companies and investors to make a change. The two companies will benefit both financially and technologically and in return benefit both consumers and investors in the sector. The companies will further benefit in that they will expand their markets in different parts of the world as well as their sales. The investors who take this opportunity will be among the best and most competitive in the market if the deal is to be.