General Motors

Last edited by Ian Elwood on August 18, 2008 - 12:51pm
Company Snapshot: 

General Motors, headquartered in Detroit, Michigan, is the leading car and truck maker under brands such as Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, and Saturn. In addition, the company produces communications and commercial transportation products. The company has 335,000 employees and reported $192.6 billion in revenues in 2005.

Ownership status: 
Publicly traded
Number of employees worldwide: 
284,000
Chief executive officer: 
Rick Wagoner
2008 Global Fortune 500 rank: 
9
Corporate accountability
Labor: 

From Coop America's Responsible Shopper Profile:

General Motors announced plans to cut up to 30,000 jobs at its factories across the U.S. over the next six years. The news came just days after Ford announced plans to cut its workforce by between 25,000 and 30,000. Washington Post, 01/26/2006

As a means to remedy a lackluster financial year, General Motors asked the United Auto Workers (UAW) to concede to cut benefits that cover 750,000 American workers. According to the Washington Post, the UAW has requested court approval for this pending agreement. The concessions are not expected to stop there, as competing automakers commonly ask for matched agreements with regard to union bargaining. GM expects to save $3 billion with the cuts. Washington Post, 10/18/2005

In March 2004, General Motors acknowledged that it planned to outsource more white-collar manufacturing jobs to people in Canada and India to cut labor costs. CBS News, 03/23/2004

Since 1993, General Motors has laid off more than 70,000 workers and now ranks as the wealthiest U.S. corporation with more than $168 billion in annual revenues. According to Global Exchange, an international human rights organization, GM has cut production costs by relocating many of its manufacturing operations overseas. Global Exchange, 06/01/2003

Environment and product safety: 

From Coop America's Responsible Shopper Profile:

Out of eight major car manufacturers, General Motors ranked as the second worst polluter, just above DaimlerChrysler, according to a Union of Concerned Scientists analysis. This is an improvement over previous years when GM ranked as the worst polluter. GM produces the most cars which get 15 MPG or worse in city driving. Union of Concerned Scientists, 04/03/2007

General Motors has been criticized by environmentalists for its promotion of the HummerH2 SUV, which resembles the U.S. military's Humvee vehicles. The HummerH2, which gets only 13 miles per gallon, does not meet U.S. regulations on fuel economy at 100 pounds above the cutoff point. GM has, for many years, "claimed that federal fuel economy regulations don't work and should not be raised." Sierra Club created a satirical web site called HummerDinger which calls attention to the inefficiency of GM's Hummer. Sierra Club 01/01/2007

General Motors' Central Foundry Division plant has been placed on the EPA's Superfund National Priority List, a listing of national hazardous waste sites the that EPA has determined pose a significant threat to human health. The GM site, located in St. Lawrence County, NY, contains approximately 850,000 cubic yards of polychlorinated biphenyl (PCB)-contaminated material. The EPA determined that sediment from two nearby rivers, the St. Lawrence and Raquette have been contaminated with PCBs, as well as soil and sediment on the local St. Regis Mohawk Reservation. The EPA states: "Individuals ingesting or touching contaminated surface water, groundwater, soil, sludges, or sediments potentially are at risk." Because of the local Mohawk Reservation consumption of fish or wildlife from contaminated areas is of special concern and fishing is restricted by the State Health Department and the Indian Reservation Administration. Environmental Protection Agency 12/14/2006

The state of California is seeking monetary compensation for the environmental damages caused by tailpipe emissions. The State’s Attorney General filed a lawsuit against General Motors, Toyota, Ford, Honda, Chrysler, and Nissan for damaging the state’s weather, economy, and public health. Attorney General Bill Lockyer, filing the suit, stated, “Vehicle emissions are the single most rapidly growing source of the carbon emissions contributing to global warming, yet the federal government and automakers have refused to act. It is time to hold these companies responsible for their contribution to this crisis.” Green Consumer Guide 09/22/2006

Environmental Defense’s report entitled “Global Warming on the Road” sheds light on the role of automobiles in augmenting the problem of global warming. Automobiles emit roughly 10 percent of global CO2 emissions from fossil fuels, the main form of greenhouse gas pollution. In 2004, CO2 emissions (MMTc), from the “Big Three”- GM, Ford, and DaimlerChrysler- were comparable to that from the nation’s 11 top electric companies. In that same year, GM’s products emitted 99 MMTc, which accounts for 31 percent of MMTc emitted by all automobile makers. Environmental Defense, 06/22/2006

As part of a campaign to discredit evidence of the threats posed by global climate change, the conservative nonprofit think tank Competitive Enterprise Institute (CEI) released two television ads defending carbon as a benign part of the natural environment. The ads end with the tagline "Carbon dioxide: they call it pollution; we call it life," and suggest that the effects of global warming are simply concocted by alarmists. CEI is funded by companies including ExxonMobil, Ford, and General Motors. Salon, 05/18/2006

General Motors was rated as the 20th worst polluter on the Political Economy Research Institute's (PERI) Toxic 100 index. PERI is an “independent unit of the University of Massachusetts,” that promotes environmental sustainability and human rights through research. The index is based on 2002 EPA Toxics Release Inventory data. PERI's Toxic 100 index ranks the nation's largest companies based on the quantity of their emissions, relative toxicity of chemicals emitted, and proximity to population centers, among other criteria. Political Economy Research Institute (PERI), 03/11/2006

A 2006 Ceres (formerly the Coalition for Environmentally Responsible Economies) report titled "Corporate Governance and Climate Change: Making the Connection," commissioned by Investor Responsibility Resource Center, details a comprehensive measurement of how 100 leading global companies are responding to global warming. Through an evaluation of board oversight, management performance, public disclosure, emissions accounting, and strategic performance, to address climate change, the companies were evaluated on a 0 to 100 scale. General Motors scored a total of 52 points. Political Economy Research Institute (PERI), 03/01/2006

A report published by Ceres, a "national network of investors, environmental organizations and other public interest groups" confronting environmental issues, has found that GM is not doing as much as it can to improve the fuel economy of its vehicles. Though the fuel economy of some of its vehicles has improved in the last 10 years, the efficiency of the entire fleet hasn't changed. This is largely due to the increase of SUVs, trucks, and minivans that guzzle fuel accounting for a much larger percentage of the company's vehicles. In addition, GM has long praised CERES for being knowledgeable and reasonable about the automobile industry.

The Alliance of Automobile Manufacturers, a lobbying group of which GM is an important member, filed a lawsuit against two state agencies in Oregon to contest the state’s proposed adoption of the Clean Cars program. The industry-opposed program includes measures to raise emissions standards to levels that would significantly reduce greenhouse gas pollution in Oregon. California Clean Cars Campaign, 09/12/2005

The American Council for an Energy-Efficient Economy(ACEEE), a nonprofit dedicated to fostering nationwide energy efficiency, listed the GMC Yukon XL K2500 and the Chevrolet Suburban K2500 on their 2005 “Meanest Vehicles” list, a ranking of the twelve most polluting vehicles of the year. ACEEE ranks vehicles based on tailpipe emissions, fuel consumption, and the emissions of gases that cause global warming. GreenBiz, 02/15/2005

General Motors CEO, Rick Wagoner, stated in June 2001 that the company would oppose any efforts to increase fuel-efficiency standards in the U.S. GM also claimed it will oppose any efforts to tighten the definition of which vehicles can be labeled 'light trucks'. Light trucks require less stringent gas-mileage standards than cars. Christian Science Monitor, 06/21/2001

Human rights: 

From Coop America's Responsible Shopper Profile:

In November 2002 a lawsuit was filed against General Motors and 19 other companies for reparations because of alleged support to the apartheid regime that ruled South Africa until 1994. The case, which was filed by the Khulumani Support Group, seeks compensatory and punitive damages for more than 32,000 South Africans hurt by apartheid. Africa Action, 11/12/2002

Location(s)

Headquarters
300 Renaissance Center
Detroit, MI, 48265
United States
See map: Google Maps
Financial information
Stock ticker symbol: 
GM
Total revenue: 
$207.349 billion
Fiscal year: 
2006
Net Income: 
$1.978 billion
Fiscal year: 
2006