General Motors

This environmental analysis paper will discuss macroeconomic factors that affect General Motors and the automobile industry. It will enlighten the reader on how macroeconomic factors create challenges and opportunities for the economy. The automotive industry plays a leading role in the growth of economies throughout the world since the industrial revolution. The automotive industry confronts greater challenges as the industry undergoes fundamental changes.
  General Motors Corporation is a part of the automobile industry. The U.S. is the world's largest producer and consumer of motor vehicles with production. Average sales per dealership are 31.9 billion. GM is an American multinational corporation and the world's largest automobile company and has been the number one global seller since 1931. According to NADA, GM total revenue in 2006 was 207.349 billion, its net income for 2006 was $1.978 billion, and currently employs 284,000 people.
Key macroeconomic factors that affect GM and the automobile industry include gross domestic products (GDP), automobile manufacturer’s policies and prices, weather peaks and recessions, and telecommunications and technology. Gross domestic product includes all goods and services produced by either citizen-supplied or foreign-supplied resources employed within the country. The automobile manufacturing industry is one of the largest industries within the U.S. and is a vital engine for the U.S. economy contributing greatly to employment and productivity.   Reports indicate that motor vehicle production represents over 5% of the U.S. private sector GDP.   Automotive dealerships like GM are required to make profits in order to support their operations. GM uses tools such as GDP or the optimism index to help keep their products selling. Automobile manufacturer’s policies include manufacturer’s suggested retail price (MSRP), rebate programs and incentive programs. These policies help automobile dealers create the operating environment...