Better Close Fast

When trying to acquire another company or trying to divest an unit of you company always try and close quick. You never know what can happen and the entire deal may fall though. Similarly to GM's deal to sell Hummer to a Chinese company. The deal dragged on for months until it was dead. This eventually led to GM shutting down the Hummer brand for good.http://money.cnn.com/2010/02/24/news/companies/hummer_chinese/

Risk of IB

Did you know that GM supplied both the Allies and the Nazis in World War 2? Command of Opel, a subsidiary of GM, was taken by the Nazis during the war. GM was not able to produce Opels or refuse to supply the Germans. This is a major risk of international business. You never know when the country you are investing in will ultimately become an enemy of your home country. When GM purchased Opel in 1923, it was right after WW1. At that point Germany was devastated and disarmed, they were no risk of every being an enemy of the United States.

http://boards.straightdope.com/sdmb/archive/index.php/t-345330.html

GM and PSA

GM and PSA, Citroen have agreed to a strategic alliance to make a small car platform for the European and South American markets. This alliance like many will not work due to lack of trust between the two companies. GM will not want to give to many of its secrets away to PSA and visa versa. This alliance instead will produce sub par vehicles that would not normally be produced by either company.

GM moving towards a flatter structure

GM has announced that they are moving to a flatter structure. In an attempt to create a more nimble organization, while also putting more decisions and ownership on its employees. This decision will save GM millions of dollars in the long run by cutting middle management jobs out from the middle of the hierarchal structure.

http://gmauthority.com/blog/2010/03/gm-announces-major-organizational-changes-to-gm-north-america-with-org-chart/

General Motors Fridge?

 Did you know that GM once made refrigerators?  Neither did I. I bet you ask yourself why? Think about this both cars and appliances have to be assembled in large plants. GM could us the downtime in their automotive plants as tome to build their other ventures. In addition, they could use the knowledge of refrigeration to benefit their core competency of auto manufacturing. At that time the “average” automobile did not have air conditioning. With their refrigerator’s manufacturing, GM may be  able to use economies of scale to lower the price of parts that could be used for both cars and refrigerators.

GM's anti vertical integration

Vertical integration is supposed to give the parent company more control as well as lower cost of the element that they are integrating. However, after GM’s bankruptcy they are doing the opposite. GM is closing corporate owned dealerships as well as selling the parts supplier Delphi. These moves are to save GM money over the next few years. Instead of divesting though GM should have “broke” the union. By breaking the union, GM could have cut cost as well as become more nimble to human resource issues. 

GM and Toyota Strategic Alliance

GM and Toyota have been in a joint venture in California for nearly 30 years. This partnership helped GM benchmark a company that strived on their quality and JIT production, while also helping Toyota to learn from the number one automotive manufacture in the world. (http://www.kellyallan.com/gm_toyota.html)