Who owns GM? GM is a publicly traded company, which means its ownership is distributed among numerous individual and institutional investors who hold shares of the company. Anyone who owns shares of GM’s stock has a degree of ownership in the company. The largest shareholders typically include investment management firms, hedge funds, and retirement systems, among others.
These shareholders exercise their ownership rights by voting on matters during the company’s annual meeting and can also benefit from company profits in the form of dividends or stock appreciation.As of September 2021, some significant shareholders of GM include Vanguard Group, BlackRock, Capital Research Global Investors, and Berkshire Hathaway. However, these shareholders and their respective ownership percentages may change over time due to market fluctuations and trading activities.
Company History
General Motors (GM) is a multinational automobile manufacturer originally founded in 1908 by William C. Durant. The company is headquartered in Detroit, Michigan, and has production facilities in multiple countries worldwide. Over the years, GM’s ownership has undergone significant changes, involving various stakeholders such as investors, employees, and even the federal government.
Here’s a brief history of General Motors’ timeline and its ownership:1908: GM was founded by William C. Durant, with Buick as its primary brand. Durant rapidly expanded the company through acquisitions, eventually including over 20 automakers and over 30 supply companies. 1910-1920: In 1910, the rapid expansion led GM into financial trouble, and Durant was ousted.
He returned to the company in 1915, only to lose control again in 1920. Alfred Sloan was appointed as the new president under the Durant administration and later became the Chairman of the board in 1937. 1920-1970s: Under Sloan’s leadership, GM grew to become the world’s largest automaker by implementing its multi-brand structure. This included five primary US divisions: Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac.
Throughout this period, GM was owned by a combination of private shareholders and investment groups, including the DuPont family and the Morgan financial group. 1970s-1990s: GM expanded globally with the acquisition of several international brands, including Opel (Germany), Vauxhall (UK), and Holden (Australia). In addition, GM established joint ventures in China and South Korea. Ownership during this time remained dispersed among private investors, institutional shareholders, and employees. 2000s: General Motors encountered severe financial challenges in the early 2000s due to waning sales, rising healthcare and pension costs, and increased competition from foreign automakers.
In the mid-2000s, investment group Kirk Kerkorian attempted and failed to take control of GM, eventually selling off his significant stake in the company. 2009: GM filed for Chapter 11 bankruptcy protection in June 2009 amidst the global financial crisis. The United States government stepped in and provided a rescue package, effectively bailing out the automaker. As a result, the US Treasury became the majority shareholder of General Motors, owning a 61% stake. Smaller stakes were owned by Canadian governments, United Auto Workers health-care trust, and bondholders. 2010-present: General Motors exited bankruptcy in late 2009 after the divestiture and restructuring of its portfolio. In November 2010, GM conducted an initial public offering (IPO) to return to being a publicly-traded company. Since then, the US government has systematically sold off its stake in GM, completely exiting its ownership in 2013.
Currently, GM is a publicly-traded company on the New York Stock Exchange (NYSE) under the ticker symbol “GM.” Ownership of the company comprises various institutional investors, retail investors, and employees holding shares of the company.
Who was the original founder?
General Motors (GM) was originally founded by William C. Durant on September 16, 1908. William Durant was an American industrialist and entrepreneur, who was also a pioneer in the automotive industry. Before founding GM, he had a successful career in the horse-drawn carriage business, where he managed and developed the Durant-Dort Carriage Company. Born on December 8, 1861, in Boston, Massachusetts, Durant grew up in Flint, Michigan. At the age of 23, he entered the carriage business and eventually formed the Durant-Dort Carriage Company with business partner J. Dallas Dort.
Their company became one of the leading firms in the horse-drawn carriage industry in the 1890s. As the automobile industry emerged, Durant saw the potential in this new technology. He initially invested in the Buick Motor Company and became its president in 1904, successfully turning it into a leading automobile manufacturer. Recognizing the importance of consolidating automobile makers, he founded General Motors in 1908, with the vision to create a consortium of auto manufacturing companies. Under Durant’s leadership, GM acquired several automakers, such as Oldsmobile, Cadillac, and Oakland (later known as Pontiac). However, due to his aggressive and ambitious acquisition spree, Durant faced financial difficulties, and he lost control of GM in 1910 to a group of bankers. In 1911, Durant co-founded Chevrolet Motor Company with Swiss racecar driver Louis Chevrolet. By 1916, Chevrolet had become successful enough to allow Durant to regain control of General Motors through a stock buyout.
He merged Chevrolet into GM in 1918 and continued expanding the company. Unfortunately, he again faced financial troubles during an economic recession in 1920 and was forced to resign from GM. Following his departure from GM, Durant ventured into other businesses, including founding Durant Motors, but never replicated the success he had with General Motors. He died on March 18, 1947, in New York City. In summary, William C. Durant was the visionary founder of General Motors, and his background in the carriage industry equipped him with the skills and knowledge to create and grow one of the world’s largest automotive companies. Despite facing multiple setbacks, his innovations and pioneering efforts left a lasting impact on the automotive industry.
Frequently Asked Questions
1. Who is the owner of General Motors (GM)?
General Motors is a publicly traded corporation, meaning ownership is divided among numerous individual and institutional shareholders who own shares of the company’s stock. The largest shareholders include investment funds, mutual funds, and individual investors.
2. What is the history of General Motors?
General Motors was founded in 1908 by William C. Durant, who initially focused on consolidating smaller automotive companies. Over the years, GM expanded its reach and acquired several well-known car brands such as Chevrolet, Cadillac, and GMC, turning into a global automotive powerhouse.
3. How is General Motors managed today?
GM’s management is headed by a Chief Executive Officer (CEO), currently Mary T. Barra, who is responsible for overseeing the company’s long-term strategy, operations, and performance. The CEO, along with other top executives, reports to a Board of Directors who are elected by shareholders to represent their interests in ensuring the company’s success.
4. What is General Motors’ current market share?
As of the recent years, General Motors holds a significant share of the U.S. automobile market, typically ranking among the top three automakers in terms of total vehicles sold per year. Globally, GM is one of the world’s largest automakers, with a presence in several international markets.
5. How does General Motors ensure the quality of its products?
GM is committed to delivering high-quality products by investing in advanced technologies, continuous improvement programs, and rigorous quality control processes. The company also collaborates with various suppliers and partners throughout the manufacturing process to maintain consistency and meet customer expectations.
Sources for More Information
- GM Investors (Official Website)
- New York Times: General Motors
- U.S. Securities and Exchange Commission (SEC)
- Reuters: General Motors Co
Featured image provided by Mike Bird; Pexels; Thanks!
