But assistance was also presented as the only way for GM to avoid a bankruptcy filing. GM said the assistance would, among other things, play a key role in promoting the Chevrolet Volt (mostly) electric car it was planning to introduce. began making the rounds on Capitol Hill seeking $25 billion in federal loan guarantees for the Big Three. In September 2008 Wagoner and Ford executive chairman William C. After the federal government came to the rescue of the big banks, GM and other automakers began to appeal to Congress for their own bailout package. The company has had to contend with large-scale recalls, massive federal penalties and demands for compensation from victims and their families.Ĭonditions for GM deteriorated amid the sharp economic downturn in 2008. The new GM placed greater emphasis on more environmentally-friendly vehicles such as its Chevrolet Volt, but in 2014 it became embroiled in a scandal involving a decade-long failure to deal with an ignition switch problem that has been linked to more than a dozen deaths. GM then claimed to be serious about developing a zero-emission electric car, but prematurely pulled the plug on its own creation. During the 1980s and 1990s it led the industry’s effort to block stricter federal fuel-efficiency standards. During the 1970s its attempt to intensify the assembly line to an unbearable extent gave rise to a blue-collar rebellion centered on the company’s plant in Lordstown, Ohio. During the 1960s it was at the center of controversy over auto safety and through its clumsy actions helped turn consumer advocate Ralph Nader into a national figure. The recession that began in 2007 dealt a heavy blow to the weakened company, which had to be bailed out by the federal government and undergo a brief period in bankruptcy.Īlso for decades, General Motors was seen by many as the epitome of corporate irresponsibility. The company lost more and more ground to Japanese competitors such as Toyota and Honda, which seemed better able to respond to changes in consumer preferences. GM’s dominance began to deteriorate in the 1970s, and the slide continued over the following three decades. It was widely believed, as GM President Charles “Engine Charlie” Wilson famously told Congress, that “what was good for our country was good for General Motors-and vice versa.” GM also had far-flung operations outside the United States, making it the world’s largest automaker. After emerging from the consolidation of various carmakers, parts producers, and other operations early in the 20th century, GM went on to become the cornerstone of the U.S. For decades General Motors held a commanding position in the motor vehicle industry.