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Effects of Quality Management on Domestic and Global Competition - Research Paper Example

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Domestic and Global Competition on Automobile Industry Name Institution The automobile industry is one of the world’s most important industries that drive the economy in revenue generation. It deals with developing, designing, and selling of vehicles across the globe…
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Effects of Quality Management on Domestic and Global Competition Paper
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Japan is the home of most of the world’s best motor producing companies like Toyota, Nissan, Suzuki, and Mitsubishi among others. General Motors Corporations is the world’s largest automaker whose headquarters are in the United States, but has branches in about one hundred and fifty seven countries across the globe. The ownership of the general motors is majorly by the United States government, which owns about sixty-one percent of the total shares. Others entities that have ownership of the general motors are the united Autoworkers, the Canadian government, and bond holders from the old company.

General motors once experienced financial crisis in the late 2000s such that it threatened closure of most of its branches in North America (Kennedy, 2005). The American government however came in and funded the corporation. On the other hand, Naza is a Malaysian based industry whose main objective during formation was marketing and distribution of motor vehicles. It was not until 2003 when the firm started production of bikes then motor vehicles in the year 2005. The company founded by a mogul Tan Sri SM Nasimuddin of Malaysia in 1975 was intended to import reconditioned cars.

The company established itself and became an importer of luxury vehicles. The business expanded and in the late nineties, it franchised with South Korean carmaker thus expanded its portfolio of distribution. General motors is credited as the world’s number one automaker, and absorbs as many as hundreds of thousands of people across the world. Naza has absorbed hundreds of people, but the expectations are that it will recruit more members in the near future. The indulgence of the company into the manufacturing sector and mergence with other firms has seen its growth to a recognizable status.

General motors has been generating a profit of about 4.7 million US dollars excluding the pensions cost and other expenses. In ranking as per income generation, the general motors took the second position in the United States after Toyota (Cooney & Yacobucci, 2007). General motors have expanded globally and has gained worldwide recognition. It has main branches in North America, Asia, and Africa. For instance in Africa, General motors ventured back in 1920s but it grew and started assembling vehicles in1950.

On arrival in Africa, the first situation of general motors was Egypt, which up to date is the only producer if traditional general motors branded vehicles (Kennedy, 2005). Apart from this, the industry has other branches in Tunisia, which assembles mainly Mazda and Isuzu models. In Kenya GM is situated in Nairobi and it assembles a wide variety of trucks and buses. General motors have its stations in other East African countries like Uganda, Tanzania, and central Africa. Naza on the other hand has its demand locally based though it has entered into contract with worlds distributors that make Naza the hub of their products specifically in Malaysia.

In 2010, General Motors Corporation assigned Naza as the sole distributor of Chevrolet model in Malaysia. Naza also entered into contract with Piaggio group to distribute its main brands in Malaysia. According to Cooney & Yacobucci (2007), the products of general motors have repeatedly participated in the worlds racing championship winning many races. The recent invention from general motors, Cadillac V-series has also ventured in the racing championship. General motors did many research programmes for the market demands.

This led to its mergence with various companies to

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