On June 1, 2009, General Motors filed for Chapter 11 backruptcy proceedings and is today majority owned by the United States Treasury and the Canadian government. The US government invested $57.6 billion under the Troubled Asset Relief Program to save GM and prevent the unemployment that would have followed from a GM collapse. General Motors figured heavily in the news during the spring and summer of 2009, but how did this company grow into the giant that it is today? In this article, we will take a brief look at the history of General Motors.
The company was first formed in Flint, Michigan in 1908 as a holding company for buick then owned by William C. Durant. The newly formed company acquired Oldsmobile that same year and went on to purchase Cadillac, Ewing, Elmore, Cartercar, and Oakland (later known as Pontiac) in 1909. GM also bought Relaince Motor Truck Company and Rapid Motor vehicle company in 1909 followed by Welch and Rainer during 1910.
The acquisitions meant taking on large amounts of debt and in 1910 Durant lost control of GM to a bankers trust, but in 1916 he returned as head of the company after a successful stock buy back campaign backed by Pierre S. du Pont. With Durant back behind the wheel, the GM Company was incorporated as the General Motors Corporation. In the mid 1920s the main office of the comapnny was moved to Detroit where it is still located.
In the 1920s and 1930s, GM assumed control over the Yellow Coach bus company and decided to aid in the formation of the Greyhound bus lines that would largely replace the intercity trains across the United States. GM also bought streetcar companies through subsidiaries and replaced this rail-based mode of transportation with buses as well.
Over the years, GM acquired or gained controlled over a number of foreign companies and brands, such as British Vauxhall Motors, German automobile manufacturer Adam Opel AG, and Austrian Holden. After producing armaments, vehicles and aircrafts for both Allied and Axis purchasers during World War II, General Motors grew into one of the largest employers in the world during the early 1950s. It became the first. corporation to pay over $1 billion in taxes.
General Motors owned during the early 21st century the following car brands Chevrolet, Cadillac, Buick, GMC, GM Daewoo, Opel, Saab, Vauxhall, Pontiac, Holden, Saturn, Wuling, and Hummer. The Hummer is one of the newest additions to the GM family; a brand purchased from AM General Corporation in 1998. The Hummer H2 and H3 are devloped by GM after they boguth the brand. Unlike the H1 which is chiefly an off-road vehicle the newer variants are commonly seen in city traffic and there is even a Hummer limousine. The hummer limo has become very popular for proms, parties and special events. As owners of the Hummer brand, GM received heavy criticism for promoting what was regarded by some as gas-guzzling monsters completely unnecessary for urban driving, but this sharp criticism didn’t prevent the Hummers from becoming much sought after vehicles in the U.S. as well as abroad.