General Motors Co. (GM) is one of the leading automobile and truck manufacturers in the world. GM continues to produce vehicles under its traditional brands, such as Buick, but also produces vehicles in China through joint ventures. GM earns the majority of its revenue and profit from vehicle sales but also from its financing arm called GM Financial.
GM is in the midst of a transformation, in which the company is shifting some of its production from carbon-based vehicles to electric vehicles (EVs). This article contains an analysis of how General Motors earns its revenue and profit, as well as a look into the company's future.
About General Motors (GM)
Founded in 1908 by William C Durrant, General Motors (GM) employs 155,000 employees globally, including more than 88,000 in the United States. GM is headquartered in the United States in Detroit, Michigan.
GM has 122 plants and facilities in the U.S., including 11 assembly plants, 19 parts distribution centers, and battery plants. GM's global manufacturing operations are located throughout six continents.
GM Brands
General Motors manufactures automobiles and trucks under multiple brands, including Chevrolet, Buick, GMC, and Cadillac.
GM also manufactures cars and trucks under two brand names in China called Wuling and Baojun. The company has a total of 10 joint ventures in China. It also does business via joint ventures as General Motors India, General Motors Egypt, and GM South Africa.
GM Subsidiaries
One of the subsidiaries that GM owns is OnStar Corp., which provides in-vehicle communications, security, hands-free calling, navigation, and remote diagnostics systems via a subscription service. OnStar offers a crash response system with built-in vehicle sensors to detect an automobile crash, reporting it to authorities. The system also provides stolen vehicle assistance, which locates and aids in the recovery. It even offers an in-vehicle Wi-Fi hotspot service, allowing customers to connect via cell phone.
GM Financial, which provides auto loans to GM customers, is a wholly-owned finance subsidiary of GM headquartered in Fort Worth, Texas. GM Financial has operations in North America and Latin America as well as a 35% equity interest in a joint venture with SAIC-GMAC Automotive Finance Company Limited in China.