General Motors

General Motors Corporation asked for an instantaneous provisional Federal loan of about $4 billion in the month of December 2008. The company anticipated to put together an extra $4 billion in January, 2009 to support operating failures caused by low production in North America. If the situation had no chance of improvement, then the company thought of accessing $2 billion bringing the total amount to nearly $10 billion by the end of the first quarter of 2009. Employment had been cut to forty-two percent from 167,000 to 97,000.

The company had instantaneously ceased the entire corporate aircraft processes. This had an adverse impact on the salaried staffs. The way out for the company is to seek assistance from the U. S. government. Failure to get assistance would hamper the domestic industry and the entire supply chain (Cruz). The board of General Motors (GM) Corporation wanted to evaluate a reshuffling plan which was aimed at deducting costs and winning support for up to approximately $12 billion from the US government. This support was provided in terms of emergency funding.

The GM wanted a bailout as they failed to manage their production suitably. Along with opponents Ford Motor Corporation and Chrysler LLC, GM hurried to accomplish the business plans required by Congress as a clause of considering nearly $25-billion liberation package for the besieged industry. According to the GM board meeting, the United Auto Workers (UAW) president Ron Gettelfinger indicated that his union was ready to provide further allowances so as to win support for the bailout from the management of the auto companies.

As quoted by Ron Gettelfinger, “‘they need to establish that executive compensation is something that they’re willing to curtail. They can also give the government an equity stake in the business” (GM Bailout Plan under review). House and Senate Democratic leaders sent letters to GM, Ford and Chrysler executives declaring that the corporations desired a plausible reorganization plan. According to the statistics, the sales of the auto companies showed depressing results in the month of November, 2008. The figures revealed that October, 2008 proved to have only limited leap due to consumer improbability and tight credit.

As evaluated by the analysts, there is a probability for GM to impede burning cash if the auto industry regains its sales rate. A sales rate of approximately 13 million vehicles and a backup by federal funds would help GM to see the fruits of success. This deal would entail abrupt dispensations from creditors, administrative and the UAW. The union is under force to give up protections that permit jobless factory workers at the Detroit automakers to collect above ninety percent of their compensation by moving to a jobs bank. The union approved to constraints on the program.

A potentially more vital allowance would be payments by GM and other automakers to the retired auto-employees. This payment would be made from a $48 billion trust fund which is planned to take over funding health care assistances from the year 2010. The modified plan of GM is required to be submitted to Congress. This plan is anticipated to illustrate deductions to executive reimbursement. The automaker rewarded its top management over $40 million approximately in 2007 although the stock prices showed a drop of nineteen percent and there had been a loss of about $39 billion.

Moreover, the GM plan is likely to specify that the corporation will inquire a number of bond holders to accept equity and inadequate cash disbursement to buy back the obligation they hold. That recommended debt swap is observed to be essential since GM has in excess of $44 billion in obligation on its balance sheet according to the analysts. The auto manufacturers burned through nearly $6. 9 billion in the third quarter of 2008 and in September, 2008 concluded with about $16. 2 billion. GM required at least an amount between $11 billion and $14 billion to maneuver and compensate suppliers.

The company had also cautioned that it could collapse due to short of cash by the beginning of 2009 if they were unable to get any kind of government help. The revised plan from GM was likely to stress on its investment in fuel-saving know-how and substitutes such as, GM’s battery-powered Chevrolet Volt. Forecasters anticipate the auto manufacturers to feature private product plans that demonstrate they have a game plan for meeting federal obligations for a forty percent enhancement in fleet-wide average fuel economy to thirty-five miles per gallon by year 2020 (GM Bailout Plan under review).

GM operating with about $15. 4 billion of U. S. aid, would be in any case partly possessed by the U. S. government under the auto manufacturer’s plan to cut its debt and slash dealer ranks over forty percent. If this scheme is approved by the Obama administration, then it would provide the Treasury at least fifty percent of the sixty billion shares in a reordered GM. The U. S. would unite with European and Chinese administrations in holding stakes in local auto manufacturers. The U. S. may be the major shareholder in the country’s largest automaker by transferring $10 billion of its loans into equity.

The government gets special treatment over other GM creditors as its loans are protected by assets even as the $27. 5 billion in bond debt is unprotected. The administration has held veto power over GM expenses of above $100 million since December liberation. According to GM, the prevailing equity holders having about 610. 5 million shares outstanding, will possess about one percent of the reorganized corporation on a pro-forma basis. This would be done after approximately sixty billion more shares are issued.

Bondholders would be provided ten percent of the new stock. The U. S. and the UAW union would segregate the remaining eighty-nine percent, with at least half owned by the government. The underlying macroeconomic theory behind the GM bailout plan is the incorporation of private equity model. According to the private equity model, the business governance should not work on a daily basis. The role of the U. S. in this company is to build up a plan whereby the auto manufacturer can be self-sufficient and not require federal assistance to survive.

The company and the government do not have the intention to run the auto business on a day-to-day basis. The corporation requires slashing liabilities so that it can continue its present U. S. loans and borrow an additional of about $11. 6 billion. Under the survival plan, the company will intensify its dealer reductions to forty-two percent by 2010, from an intended thirty-four percent decrease by 2014. The plan for a government ownership stake is still under evaluation. According to Chief Executive Officer Fritz Henderson, the U.

S. government desires that GM should opt for a feasible plan to ensure that the taxpayers get reimbursed in the case of government loans or acquire an adequate return in the case of equity. The auto manufacturer’s reductions are planned to ensure productivity in a U. S. market with sales of as few as ten million autos. This was 13 percent lower than formerly predicted. The annual sales rate was approximately 9. 9 million in March 2009 although the company declared its break-even target to be an industry sales rate of nearly 11.

5 million to 12 million. Losses have amounted to about $82 billion since 2004. This led the company to the edge of collapse. Seeing the condition, the ex-President George W. Bush sanctioned the first installment of crisis U. S. loans in December, 2008. It can be concluded that the government of U. S. has no intentions of controlling the automaker for a long-term basis. The ownership of government was by default and not pre-planned (Green). References: 1. Cruz, Gilbert. “GM, Ford and Chrysler’s Bailout Plans”.

Time, Dec 3, 2008. Available at: http://www. time. com/time/business/article/0,8599,1863637,00. html (Accessed on May 17, 2010). 2. “GM Bailout Plan under review”. The Straits Times, Dec 1, 2008. Available at: http://www. straitstimes. com/Breaking%2BNews/Money/Story/STIStory_308890. html (Accessed on May 17, 2010). 3. Green, Jeff. “GM Bailout May Mean Government Becomes Biggest Holder”. Bloomberg. com, April 28, 2009. Available at: http://www. bloomberg. com/apps/news? pid=20601087&sid=aRgY68o56to8 (Accessed on May 17, 2010).

Honda Cars uses in its manufacturing, the state of the art facilities that set standards in the world market (specifically in automotive industry). The company utilized a leading edge painting facility, occupies a full dip paint system based on CED (Cationic Electro Deposition) bath, to guarantee faultless coating, accurate adhesion and anti-corrosion. The cars produce mainly by Honda also guarantees customer’s satisfaction.

Honda employs strict measures to produce quality cars throughout the international market. The produced (cars) are subjected to strict inspection and testing. The company tests the products at Vehicle Quality section to minimize company defects and ensure that cars performed at its crest. Upon release to the dealers, the company determines the products (head and toe, wheel) alignment at the company’s G-SWAT and headlight tester. The company tests the running performance (optimum speed), clutch, breaks, and shifting levels at Brake Speed Tester. Other tests consist of Water Leak Tests, Side Slip Test, Visual Inspection and Simulation Test. This test evaluates the performance of the products at different road condition.

Sales / Distribution

Honda Cars is mainly based in Japan and its branches are spread in the world market. The company in its home country produces quality and good price to Japan. Over the years, through its success, the company maintained a sole proprietor / producer of Honda cars. The company does not join other automobile companies to expand their production. The company maintained its own stlye and makes an icon in the international market. In the recent years (2000-2007, Honda cars was hammered by other big automobile companies in the world market. The company’s introduction of their products in Europe was thrashed by American and European-based car companies. But, the company is still in the line of making and produce cars in the international market.

General Motors

General Motors / GM was known with its production of unique interiors and bodylines. The company’s goal was, ‘To provide the finest vehicles possible to every customer in every market around the globe.’ General Motors Corporation is the world’s largest producer / seller of cars in the world market. Based in U.S.A., the company is present in 33 countries with an employment rate about 284, 000 people around the globe. In 2006, General Motors produced; “Chevrolet, GMC, GM Daewoo, Saab, Saturn and Vauxhall, Buick, Cadillac, Holden, HUMMER, Opel, and Pontiac”.

The company’s biggest sales in its home country (U.S.A.), proceeds by United Kingdom, Canada, China and Germany. The company made a strategy to expand its production in the world market through Minority Dealer Development. It is bilingual in nature; both the dealers and the company benefit (hefty advantage to the company). It is directed through different companies and directs in human resources (training) and dealership.

Today, the General Motors had access throughout the globe; from country to country, cities from cities, overcoming production of sole proprietors of cars. The company sweeps away competition among other car companies and still leading the automobile industry.

Sales / Distribution

The company focuses in partnership to other car companies around the globe and developed profound relationships to its customers. General Motors is the leading / major stockholder of GM Daewoo Auto and Technology Co. of South Korea and collaborates with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. In addition, the company engaged in research and technology advancement with BMW AG (Germany), DaimlerChrysler AG and Toyota Motor Corp. (Japan). Also, the company gambles investing Renault SA of France, Shanghai Automotive Industry Corp. of China, Toyota, AVTOVAZ of Russia and Suzuki.

GM Powertain under General Motors put for sale GM engines and transmissions. Parts and Accessories are retailed via GM Service and Parts Operations under Gm Performance Parts, ACDelco, and GM Good wrench. This supplies GM dealerships and distributors worldwide.

Salesperson Profile

Salesperson assist customers to acquire what they need and attempt to make them interested in buying your product / merchandise. Retail salespersons are highly ‘in demand’ and competitions in this job are high. Employers do prefer college graduate in sales; college graduate people take an advantage over high school graduates.

In layman’s term, a good salesperson needs to have skills in communication. He / She do not only require good education but also needs to be industrious, creative and with talent in chatting with common people (buyers). His / Her talent in making people believe in his / her products will definitely make him / her best in selling products / produced goods. Employers would definitely choose salesperson with talent rather than a common salesperson.

Work Cited

Honda: The Power of Dreams (2007). URL

http://www.hondaphil.com/ourcompany.php?id=2. Retrieved September 14, 2007.

Mckay, Dawn Rosenberg. Retail Salesperson: Career Information (2007). URL https://www.thebalance.com/retail-salesperson-526064. Retrieved September 14, 2007.