News From the Auto Industry

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Over the course of nearly a century, General Motors (GM) has weathered more ups and downs and gone through more fundamental changes than most companies. GM has been the world's largest vehicle manufacturer since 1931, producing such brands as Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, Saturn, and Oldsmobile. From the 1950s into the 1970s, the automaker led the industry in building millions of low-cost cars, achieving nearly 60 percent of U.S. auto sales. Along the way, its Chevy Corvette convertible sports car became an American icon and a symbol of the laid-back West Coast lifestyle. Today, General Motors has about 30 percent of the auto market and faces new challenges, such as decreased productivity, rising costs of employees health benefits, and the demand for cleaner, safer, and more fuel-efficient vehicles.

Also during this time, the Cadillac Automobile Company was established in Detroit, founded by Henry Leland, who built car engines with experience gained in the Oldsmobile factory, where he worked until 1901. By the end of 1902 the first Cadillac had been produced—a car distinguished by its luxurious finish. In the following year, tiller steering was replaced by the steering wheel, the reduction gearbox was introduced, and some cars were fitted with celluloid windscreens. Oldsmobile also reached its projected target of manufacturing 4,000 cars in one year. A third player, engineer David Buick, founded his own factory in Detroit during this time as well.

General Motors Corporation headquarters, Detroit, Michigan. Reproduced by permission of AP/Wide World Photos.

General Motors traces its history back to the late 1800s, when William "Billy" Durant (1861-1947) was leading the horse-drawn carriage market in Flint, Michigan. A natural born
salesman with his finger on the pulse of new markets, he realized the future was in the "horseless" carriage. In 1904, Durant took over Flint's failing Buick Motor Company. He quickly turned Buick around, and by 1907, was producing over four thousand cars per year. In 1908, with Durant at the helm, the company was the number-one automaker in the United States, outselling rivals Cadillac and Ford Motor Company (see entry).

The beginning of General Motors Corporation can be traced back to 1892, when R.E. Olds collected all of his savings to convert his father's naval and industrial engine factory into the Olds Motor Vehicle Company to build horseless carriages. For several years, however, the Oldsmobile (as the product came to be known) did not get beyond the experimental stage. In 1895 the first model, a four-seater with a petrol engine that could produce five horsepower and reach 18.6 mph, went for its trial run.

From Carriages to Cars

Public Company Incorporated: 1916 Employees: 326,000 Sales: $185.5 billion (2003) Stock Exchanges: New York Toronto Frankfurt Euronext Paris London Ticker Symbol: GM NAIC: 336111 Automobile Manufacturing; 336112 Light Truck and Utility Vehicle Manufacturing; 336211 Motor Vehicle Body Manufacturing; 336350 Motor Vehicle Transmission and Power Train Parts Manufacturing; 336510 Railroad Rolling Stock Manufacturing; 421110 Automobile and Other Motor Vehicle Wholesalers; 441110 New Car Dealers; 522220 Sales Financing; 522291 Consumer Lending; 522292 Real Estate Credit; 524126 Direct Property and Casualty Insurance Carriers; 532112 Passenger Cars Leasing