US president Barack Obama is not willing to provide any governmental aid to the company as he believes that first there should be serious restructuring plan before providing any financial aid. The company has decided to down size its workforce as a process of reorganisation. Moreover GM decided to sell its European arm Opel and Vauxhall to Magna International, a Canadian automobile parts manufacturer and supplier. After a long biding process Magna was selected and it was expected that Magna would invest around 700 million dollar into Opel. It was also expected that with this huge investment would create over 25,000 jobs in Germany. But in the later half of this year GM again decided that it would keep Opel with itself and cancelled that entire plan. The company has been going through such a situation over the past few months which it has never been before.
It is been a century that GM is one of the largest automotive companies in the world. It was holding the number one position in terms of sales for 77 long years before Toyota surpassing it in 2008. Today there are 235,000 employees in the company. GM is operating business in 140 different countries while in 34 countries it has production facilities.
Primary activities are directly involved in creating and delivering values and support activities are not directly associated in the process of value creation but play important role in enhancing the efficiency and effectiveness (Tutor2u, n.d.).
General Motors has strong value chain which enables the company to be at the top for almost a century. GM’s inbound logistics are very strong as the company maintains good relations with its suppliers whom it get the inputs from. These inputs are converted into final product into its large number of production plants. It is already mentioned that the company has its production plants in almost 34 countries. Manufactured cars then reach to the buyers through a strong