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1897Olds Motor Vehicle Company, Inc., the oldest unit of General Motors Corporation, is organized by Ransom E. Olds with capital of $50,000 (5,000 shares of stock at $10 per share) and the first Oldsmobile is produced.
Olds Motor Vehicle and Olds Gasoline Engine Works of Lansing merge to form Olds Motor Works. This new company is incorporated on May 8, 1899 with $500,000 capital. The first factory specifically for automobile manufacture in the United States is built by Olds in Detroit on Jefferson Avenue East.
1902
Cadillac Automobile Company is organized in Detroit by Henry M. Leland, a precision manufacturer of automotive components.
1903
Buick Motor Company, founded by David Dunbar Buick, is incorporated on May 19, 1903. Ground is broken for the first Buick engine plant on September 11, 1903, with funding from Flint Wagon Works, and operations are moved from Detroit to Flint.
1904
William Crapo ("Billy") Durant of Durant-Dort Carriage Company, Flint, Michigan, takes control of Buick Motor Company on November 1, 1904.
1905
Cadillac produces the Osceola, a single-cylinder favorite of Henry Leland and the first step-in closed-car design. The body was built under the supervision of Fred J. Fisher (who later founded Fisher Body with his brothers) in the Wilson Body Company plant in Detroit.
1907
The Oakland Motor Car Co., predecessor to Pontiac Motor, is founded by Edward M. Murphy on August 28, 1907 in Pontiac, Michigan.
1908
Under Billy Durant's leadership, General Motors Company is organized in 1908 (Sept 16), incorporating the Buick Motor Company.
1909
General Motors purchases Cadillac for $5.5 million on July 29, 1909. Henry M. Leland and his son, Wilfred, are invited to continue operating Cadillac. They do so until 1917, when they leave to form Lincoln Motor Co.
General Motors was founded in 1908 as a holding company for Buick, then controlled by William C. Durant, and acquired Oldsmobile later that year. The next year, Durant brought in Cadillac, Elmore, and Oakland.
During the 1920s and 1930s General Motors bought out the bus company Yellow Coach, helped create Greyhound bus lines, replaced intercity train transport with buses, and established subsidiary companies to buy out streetcar companies and replace the rail-based services with buses. GM formed United Cities Motor Transit, in 1932. See General Motors streetcar conspiracy for additional details.
General Motors bought the internal combustion engined railcar builder Electro-Motive Corporation and its engine supplier Winton Engine in 1930, renaming both as the General Motors Electro-Motive Division. Over the next twenty years diesel-powered locomotives and trains, the majority built by GM, largely replaced other forms of traction on American railroads.
On December 31, 1955, General Motors became the first American corporation to make over one billion dollars in a year.
William "Billy" Crapo Durant was born in Boston, Massachusetts, 8 December 1861, the grandson of a Michigan Governor, Henry H. Crapo [Governor 1864-8] his mother being from the New Bedford area. His father was addicted to hard liquor and stock speculation, a trait which may have been passed-on to his son, though the son was later a public advocate of prohibition enforcement. Henry Crapo had travelled west to the town of Flint, Michigan in order to set-up a timber yard and buy up timberland, having accrued a fortune from whaling. The Durant family followed, and young Billy attended the Flint Grammar School. He showed natural talent for selling medicine, insurance, cigars, real estate and bicycles.
One evening in 1884 Durant saw an attractive two-wheel horse-drawn cart on the streets of Flint, Michigan which had been invented as a cart with "4-wheel riding qualities", and the next night took a train to Coldwater, Michigan to where the carts were made and bought the manufacturing rights as the inventor was about to go out of business. Durant talked his friend Josiah Dallas Dort into putting up a $1,000, Durant parted with $50 of his own money and borrowed another $1,450 to cover the $2,500 cost of buying the business and setting up a shop in Flint to final-assemble and display the road carts. On September 28 1886, Durant and Dort entered into a partnership as the FLINT ROAD CART COMPANY, which became basically a selling company. A Flint carriage-builder made the carts under contract for $8.00 and Durant and partner Dallas Dort sold them and delivered them for $12.50 each. On September 9 1893, the FLINT ROAD CART COMPANY was incorporated with $150,000 capitalisation, with its own assembly plant which bought-in parts from nearby suppliers. The company then changed its name to the DURANT-DORT CARRIAGE COMPANY on November 6 1895. In succeeding years Durant financed the company by subscribing a small minimum amount of stock himself, and talking stockholders and bankers into subscribing for the remainder.
By 1900, stockholders were sharing in a thriving business, producing 50,000 buggies, carts and carriages per year in Flint, fourteen other locations in the U.S. and "one in Canada" [though this could only have been established in 1905], some of which simply contracted their output to the Durant-Dort Carriage Company. This company was thus a major rival of the Flint Wagon Works run by their President, James H. Whiting, though both rival companies were also part of the Flint Board of Commerce.
The first Chevrolet drawings were made by M. Etienne Planche on 15 March 1911 at a garage premises at number 707, later 3939 Grand River Avenue, Detroit. It appears that the small second story space above the garage was used for new engine design and construction only. The prototypal Chevrolets were in fact produced in what would today be called a "pilot plant" in the 1145, West Grand Boulevard Plant that was used between August 1911 and August 1913.
Within two years, Durant lost control of GM, but remained in the automotive industry. One of his ventures was the founding of Chevrolet Motor Company with performance enthusiast Louis Chevrolet. He returned to power at General Motors in 1915, bringing the Chevrolet Motor Company with him into the GM fold. Durant was forced out again five years later and never regained power.
Racing continued to play a role in the growth of the individual companies and the automaker's overall reputation. A Cadillac scored a victory in an AAA-sanctioned race in Portland, Oregon, in 1909. Louis Chevrolet and Bob Burman teamed up to set a speed record at the recently-built Indianapolis Motor Speedway. Their trip of 105 mph came in a Buick "Bug" in 1910.
Acura //// Audi //// Austin-Healey //// BMW //// Buick //// Cadillac //// Chevrolet //// Chrysler
Daihatsu //// Dodge //// Eagle //// Ford //// General Motors Corporation //// Geo //// Honda //// Hyundai //// Infiniti
Isuzu //// Jaguar //// Jeep //// Jensen-Healey //// Kia //// Lexus //// Lincoln //// Mazda //// Mercedes Benz //// Mercury //// MG //// Mini
Mitsubishi //// Nissan //// Oldsmobile //// Plymouth //// Pontiac //// Rolls-Royce //// Rover //// Saab //// Saturn //// Subaru //// Suzuki //// Toyota //// Triumph //// Volvo //// VW
Early history GM's headquarters from 1923 until 1996, a National Historic Landmark, is now Cadillac Place state office building. General Motors was founded on Wednesday, September 16, 1908, in Flint, Michigan, as a holding company for Buick (then controlled by William C. Durant), and acquired Oldsmobile later that year. The next year, Durant brought in Cadillac, Cartercar, Elmore, Ewing, and Oakland (later known as Pontiac). In 1909, General Motors also acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. In 1910, Welch and Rainier were added to the ever-growing list of companies controlled by GM. Durant lost control of GM in 1910 to a bankers trust, due to the large amount of debt (around $1 million) taken on in its acquisitions. Durant left the firm and co-founded the Chevrolet Motor Company in 1911 with Louis Chevrolet. After a brilliant stock buy back campaign, he returned to head GM in 1916, with the backing of Pierre S. du Pont. On October 13 of the same year, GM Company became incorporated as General Motors Corporation.[3] Chevrolet entered the General Motors fold in 1917; its first GM car was 1918's Chevrolet 490. Du Pont removed Durant from management in 1920, and various Du Pont interests held large or controlling share holdings until about 1950. In 1918 GM purchased the McLaughlin Motor Car Company of Oshawa, Ontario, Canada, manufacturer of the McLaughlin-Buick automobile since 1908 as well as Canadian versions of Chevrolet cars since 1915. The company was renamed General Motors of Canada Ltd., with R.S. "Colonel Sam" McLaughlin as its first president and his brother George as vice-president.[4] GM's headquarters were located in Flint until the mid-1920s when it was moved to Detroit. Its building, originally to be called the Durant Building, was designed and began construction in 1919 when Durant was president, was completed in 1923 (Sloan became president that year) and officially dedicated as the General Motors Building in 1929.[5] GM maintained this headquarters location, now called Cadillac Place, until it purchased the Renaissance Center in 1996.[6] The Buick Division headquarters remained in Flint until 1998 when it was relocated to the Renaissance Center.[7] In 1925, GM bought Vauxhall Motors of England, and then in 1929 went on to acquire an 80% stake in German automobile manufacturer Adam Opel AG. Two years later this was increased to 100% and the company remains the core of GM Europe to this day. In 1931, GM acquired Holden of Australia. In 1926, GM created the Pontiac as a "companion" to the Oakland brand, an arrangement that lasted five years. The companion outsold its parent during that period, by so much that the Oakland brand was terminated and the division was renamed Pontiac. GM surpassed Ford Motor Company in sales in the late 1920s thanks to the leadership of Alfred P. Sloan. While Ford continued to refine the manufacturing process to reduce cost, Sloan was inventing new ways of managing a complex worldwide organization, while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model; they wanted style, power, and prestige, which GM offered them. Sloan did not neglect cost, by any means; when it was proposed Chevrolet should introduce safety glass, he opposed it because it threatened profits.[8] Thanks to consumer financing via GMAC (founded 1919), easy monthly payments allowed far more people to buy GM cars than Ford, as Henry Ford was opposed to credit on moral principles. (Nevertheless, Ford did offer similar credit arrangements with the introduction of the Model A in the late 1920s but Ford Credit did not exist until 1959.) At one time each of GM's automotive divisions in the United States was targeted to a specific market segment, and, despite some shared components, each distinguished itself from its stablemates with unique styling and technology. The shared components and common corporate management created substantial economies of scale, while the distinctions between the divisions created (in the words of GM President Sloan) a "ladder of success", with an entry-level buyer starting out with a "basic transportation" Chevrolet, rising through Pontiac, Oldsmobile, Buick, and ultimately to Cadillac. [edit] 1933 - 1958 During the 1920s and 1930s, General Motors assumed control of the Yellow Coach bus company, and helped create Greyhound bus lines. They replaced intercity train transport with buses, and established subsidiary companies to buy out streetcar companies and replace the rail-based services as well with buses. GM formed United Cities Motor Transit in 1932 (see General Motors streetcar conspiracy for additional details). In 1930, GM also began its foray into aircraft design and manufacturing by buying Fokker Aircraft Corp of America (U.S. subsidiary of Fokker) and Berliner-Joyce Aircraft, merging them into General Aviation Manufacturing Corporation. Through a stock exchange GM took controlling interest in North American Aviation and merged it with its General Aviation division in 1933, but retaining the name North American Aviation. In 1948, GM divested NAA as a public company, never to have a major interest in the aircraft manufacturing industry again. General Motors bought the internal combustion engined railcar builder Electro-Motive Corporation and its engine supplier Winton Engine in 1930, renaming both as the General Motors Electro-Motive Division. Over the next twenty years, diesel-powered locomotives — the majority built by GM — largely replaced other forms of traction on American railroads. (During World War II, these engines were also important in American submarines and destroyer escorts.) Electro-Motive was sold in early 2005. In 1935, the United Auto Workers labor union was formed, and in 1936 the UAW organized the Flint Sit-Down Strike, which initially idled two key plants in Flint, but later spread to half-a-dozen other plants including Janesville, Wisconsin and Fort Wayne, Indiana. In Flint, police attempted to enter the plant to arrest strikers, leading to violence; in other cities the plants were shuttered peacefully. The strike was resolved February 11, 1937 when GM recognized the UAW as the exclusive bargaining representative for its workers. [edit] World War II General Motors produced vast quantities of armaments, vehicles, and aircraft during World War II for both Allied and Axis customers. By the spring of 1939, the German Government had assumed day-to-day control of American owned factories in Germany, but decided against nationalizing them. During the war, the U.S. auto companies continued to be concerned Nazi Germany would nationalize American-owned factories.[citation needed] GM's William S. Knudsen served as head of U.S. wartime production for President Franklin Roosevelt, who called Detroit as the Arsenal of Democracy. The General Motors UK division, Vauxhall Motors, manufactured the Churchill tank series for the Allies. The Vauxhall Churchill tanks were instrumental in the UK campaigns in North Africa (ironically often being used to attack German logistics units using Opel trucks). Bedford Vehicles manufactured logistics vehicles for the UK military, all important in the UK's land campaigns. In addition, GM was the top manufacturer of U.S. Army 1½ ton 4x4 vehicles.[9] Nevertheless, while General Motors has claimed its German (Opel) operations were outside its control during World War II, this assertion appears to be contradicted by available evidence. General Motors was not just a car company that happened to have factories in Germany; GM management from the top down had extensive connections with the Nazi Party, both on a business and personal level.[10] During war Opel's Brandenburg facilities produced bombers JU-88, trucks, land mines and torpedo detonators for Nazi Germany.[11] During War years GM declared it had abandoned its Nazi subsidiary , and took a complete tax write-off because of which they have received tax reduction of "approximately $22.7 million" or about $285 billion in 21st-century money. After the War GM collected some $33 million in "war reparations" because the Allies had bombed its German facilities [12] for which they have earlier declared complete tax write-off and received tax reduction. American GM Vice President (later Colonel) Graeme K. Howard was a committed Nazi, and expressed such views in his book, America and a New World Order. Adolf Hitler awarded GM boss James D. Mooney the Order of Merit of the Golden Eagle for his services to Nazi Germany. General Motors’ internal documents show a clear strategy to profit from their German military contracts even after Germany declared war against America. Defending the German investment strategy as “highly profitable”, Alfred P. Sloan told shareholders in 1939 GM’s continued industrial production for the Nazi government was merely sound business practice. In a letter to a concerned shareholder, Sloan said that the manner in which the Nazi government ran Germany "should not be considered the business of the management of General Motors...We must conduct ourselves as a German organization. . . We have no right to shut down the plant."[13] After 20 years of researching General Motors, Bradford Snell stated, "General Motors was far more important to the Nazi war machine than Switzerland ... Switzerland was just a repository of looted funds. GM-Opel was an integral part of the German war effort. The Nazis could have invaded Poland and Russia without Switzerland. They could not have done so without GM.”[13] [edit] Post-war growth At one point GM had become the largest corporation registered in the United States, in terms of its revenues as a percent of GDP. In 1953, Charles Erwin Wilson, then GM president, was named by Eisenhower as Secretary of Defense. When he was asked during the hearings before the Senate Armed Services Committee if as secretary of defense he could make a decision adverse to the interests of General Motors, Wilson answered affirmatively but added that he could not conceive of such a situation "because for years I thought what was good for the country was good for General Motors and vice versa". Later this statement was often misquoted, suggesting that Wilson had said simply, "What's good for General Motors is good for the country." At the time, GM was one of the largest employers in the world – only Soviet state industries employed more people. In 1955, General Motors became the first American corporation to pay taxes of over $1 billion.[14] [edit] 1958 - 1980 By 1958, the divisional distinctions within GM began to blur with the availability of high-performance engines in Chevrolets and Pontiacs.[citation needed] The introduction of higher trim models such as the Chevrolet Impala and Pontiac Bonneville priced in line with some Oldsmobile and Buick offerings was also confusing to consumers. By the time Pontiac, Oldsmobile and Buick introduced similarly styled and priced compact models in 1961, the old "step-up" structure between the divisions was nearly over. A classic General Motors muscle car, the 1969 Pontiac GTO The decade of the 1960s saw the creation of compact and intermediate classes. The Chevrolet Corvair was a flat 6-cylinder (air cooled) answer to the Volkswagen Beetle, the Chevy II was created to match Ford's conventional Falcon, after sales of the Corvair failed to match its Ford rival, and the Chevrolet Camaro/Pontiac Firebird was GM's countermeasure to the Ford Mustang. Among intermediates, the Oldsmobile Cutlass nameplate became so popular during the 1970s that Oldsmobile applied the Cutlass name to most of its products in the 1980s. By the mid 1960s, most of GM's vehicles were built on a few common platforms and in the 1970s GM began to further unify body panel stampings. The 1971 Chevrolet Vega was GM's launch into the new subcompact class to compete against the import's increasing market share. Problems associated with its innovative aluminum engine led to the model's discontinuation after seven model years in 1977. During the late 1970s, GM would initiate a wave of downsizing starting with the Chevrolet Caprice which was reborn into what was the size of the Chevrolet Chevelle, the Malibu would be the size of the Nova, and the Nova was replaced by the troubled front-wheel drive Chevrolet Citation. In 1976, Chevrolet came out with the rear-wheel drive sub compact Chevette. While GM maintained its world leadership in revenue and market share throughout the 1960s to 1980s, it was product controversy that plagued the company in this period. It seemed that, in every decade, a major mass-production product line was launched with defects of one type or another showing up early in their life cycle. And, in each case, improvements were eventually made to mitigate the problems, but the resulting improved product ended up failing in the marketplace as its negative reputation overshadowed its ultimate excellence. The first of these fiascos was the Chevrolet Corvair in the 1960s. Introduced in 1959 as a 1960 model, it was initially very popular. But before long its quirky handling earned it a reputation for being unsafe, inspiring consumer advocate Ralph Nader to lambaste it in his book, Unsafe at any Speed, published in 1965. Ironically, by the same (1965) model year, suspension revisions and other improvements had already transformed the car into a perfectly acceptable vehicle, but its reputation had been sufficiently sullied in the public's perception that its sales sagged for the next few years, and it was discontinued after the 1969 model year. During this period, it was also somewhat overwhelmed by the success of the Ford Mustang. The 1970s was the decade of the Vega. Launched as a 1971 model, it also began life as a very popular car in the marketplace. But within a few years, quality problems, exacerbated by labor unrest at its main production source in Lordstown, Ohio, gave the car a bad name. By 1977 its decline resulted in termination of the model name, while its siblings along with a Monza version and a move of production to Ste-Therese, Quebec, resulted in a thoroughly desirable vehicle and extended its life to the 1980 model year. Oldsmobile sales soared in the 1970s and 1980s (for an all-time high of 1,066,122 in 1985) based on popular designs, positive reviews from critics and the perceived quality and reliability of the Rocket V8 engine, with the Cutlass series becoming North America's top selling car by 1976. By this time, Olds had displaced Pontiac and Plymouth as the #3 best selling brand in the U.S. behind Chevrolet and Ford. In the early 1980s, model-year production topped one million units on several occasions, something only Chevrolet and Ford had achieved. The soaring popularity of Oldsmobile vehicles resulted in a major issue in 1977, as demand exceeded production capacity for the Oldsmobile V8, and as a result Oldsmobile quietly began equipping some full size Delta 88 models and the very popular Cutlass/Cutlass Supreme with the Chevrolet 350 engine instead (each division of GM produced its own 350 V8 engine). Many customers were loyal Oldsmobile buyers who specifically wanted the Rocket V8, and did not discover that their vehicle had the Chevrolet engine until they performed maintenance and discovered that purchased parts did not fit. This led to a class-action lawsuit which became a public relations nightmare for GM.[15][16] Following this debacle, disclaimers stating that "Oldsmobiles are equipped with engines produced by various GM divisions" were tacked on to advertisements and sales literature; all other GM divisions followed suit. In addition, GM quickly stopped associating engines with particular divisions, and to this day all GM engines are produced by "GM Powertrain" (GMPT) and are called GM "Corporate" engines instead of GM "Division" engines. Although it was the popularity of the Oldsmobile division vehicles that prompted this change, declining sales of V8 engines would have made this change inevitable as all but the Chevrolet (and, later, Cadillac's Northstar) versions were eventually dropped. In the 1980 model year, a full line of automobiles on the X-body platform, anchored by the Chevrolet Citation, was launched. Again, these cars were all quite popular in their respective segments for the first couple of years, but brake problems, and other defects, ended up giving them, known to the public as "X-Cars," such a bad reputation that the 1985 model year was their last. The J-body cars, namely the Chevrolet Cavalier and Pontiac Sunfire, took their place, starting with the 1982 model year. Quality was better, but still not exemplary, although good enough to survive through three generations to the 2005 model year. They were produced in a much-improved Lordstown Assembly plant, as are their replacements, the Chevrolet Cobalt and Pontiac Pursuit/G5. [edit] 1981 - present Roger B. Smith served as CEO throughout the 1980s. GM profits struggled from 1981-83 following the late 1970s and early 1980s recession . In 1981, the UAW negotiated some concessions with the company in order to bridge the recession. GM profits rebounded during the 1980s. During the 1980s, GM had downsized its product line and invested heavily in automated manufacturing. It also created the Saturn brand to produce small cars. GM's customers still wanted larger vehicles and began to purchase greater numbers of SUVs. Roger Smith's reorganization of the company had been criticized for its consolidation of company divisions and its effect on the uniqueness of GM's brands and models. His attempts to streamline costs were not always popular with GM's customer base. In addition to forming Saturn, Smith also negotiated joint ventures with two Japanese companies (NUMMI in California with Toyota, and CAMI with Suzuki in Canada). Each of these agreements provided opportunities for the respective companies to experience different approaches. The decade of the 1990s began with an economic recession, taking its inevitable toll on the automotive industry, and throwing GM into some of its worst losses. As a result, "Jack" Smith (not related to Roger) became burdened with the task of overseeing a radical restructuring of General Motors. Sharing Roger's understanding of the need for serious change, Jack undertook many major revisions. Reorganizing the management structure to dismantle the legacy of Alfred P. Sloan, instituting deep cost-cutting and introducing significantly improved vehicles were the key approaches. These moves were met with much less resistance within GM than had Roger's similar initiatives as GM management ranks were stinging from their recent near-bankruptcy experience and were much more willing to accept the prospect of radical change. Following the first Gulf War and a recession GM's profits again suffered from 1991-93. For the remainder of the decade the company's profits rebounded and it made market share gains with the popularity of its SUVs and pick-up truck lines. Rick Wagoner had served as the company's Chief Financial Officer during this period in the early 1990s. GM's foreign rivals gained market share especially following U.S. recessionary periods while the company recovered. U.S. trade policy and foreign trade barriers became a point of contention for GM and other U.S. automakers who had complained that they were not given equal access to foreign markets. Trade issues had prompted the Reagan administration to seek import quotas on some foreign carmakers. Later, the Clinton administration engaged in trade negotiations to open foreign markets to U.S. automakers with the Clinton administration threatening trade sanctions in efforts to level the playing field for U.S. automakers.[17] José Ignacio ("Inaki") López de Arriortúa, who worked under Jack Smith in both Europe and the United States, was poached by Volkswagen in 1992, just hours before Smith announced that López would be promoted to head of GM's North American operations. He was nicknamed Super López for his prowess in cutting costs and streamlining production at GM, although critics said that his tactics angered longtime suppliers. GM accused López of misappropriating trade secrets, in particular taking documents of future Opel vehicles, when he accepted a position with VW. German investigators began a probe of Lopez and VW after prosecutors linked Lopez to a cache of secret GM documents discovered by investigators in the apartment of two of Lopez's VW associates. VW, faced with a plummeting stock price, eventually forced Lopez to resign.[18] GM and Volkswagen since reached a civil settlement, in which Volkswagen agreed to pay GM $100 million and to buy $1 billion worth of parts from GM. [19] After GM's lay-offs in Flint, Michigan, a strike began at the General Motors parts factory in Flint on June 5, 1998, which quickly spread to five other assembly plants and lasted seven weeks. Because of the significant role GM plays in the United States, the strikes and temporary idling of many plants noticeably showed in national economic indicators. In the early 1990s, following first Gulf War and a recession, GM had taken on more debt. By the late 1990s, GM had regained market share; its stock had soared to over $80 a share by 2000. However, in 2001, the stock market drop following the September 11, 2001 attacks, combined with historic pension underfunding, caused a severe pension and benefit fund crisis at GM and many other American companies and the value of their pension funds plummeted.
Hughes Electronics Corporation was formed on December 31, 1985 when Hughes Aircraft Company was sold by the Howard Hughes Medical Institute to General Motors for $5.2 billion. General Motors merged Hughes Aircraft with its Delco Electronics unit to form Hughes Electronics Corporation, an independent subsidiary. This division was a major aerospace and defense contractor, civilian space systems manufacturer and communications company. The aerospace and defense business was sold to Raytheon in 1997 and the Space and Communications division was sold to Boeing in 2000. Hughes Research Laboratories became jointly owned by GM, Raytheon, and Boeing. In 2003, the remaining parts of Hughes Electronics were sold to News Corporation and renamed DirecTV Group.