• Apr 20, 2010
By nearly all accounts, things are starting to look up at General Motors. The company has shed dead weight, cut down its debt and slimmed its dealer network in order to be a more healthy business, but those moves have officially knocked The General from the top 10 of Fortune Magazine's fabled 500 list. It's the first time in 101 years GM hasn't been one of the top 10 businesses on the list.

Fortune says that because of last year's bailout and massive plant closings and layoffs, the carmaker now holds the 15th slot among the heavy-hitters of the business world. Meanwhile, rival Ford has managed to hold onto its place among the top 10 corporations. The Blue Oval fell from seventh last year to eighth this year.

[Source: MLive I Image: Bill Pugliano/Getty]


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  • 19 Comments
      GMbandits
      • 4 Years Ago
      .....slimmed its dealer network in order to be a more healthy business.

      Are you kidding me? GM is reopening almost every store they closed with a new dealer and most are just moving a block or two down the street. Some are moving across the street! They did not close the slime ball dealers. They closed the good family owned dealerships in business for decades.

      Over the next 6 months you will see 95% of those stores reopen with new dealers. It has already started and it is happening all over the USA. Just look around....You can't miss it.

      I use to work for one of those family dealers. I watched it happen. GM was bailed out and the dealer was booted out after three generations of successful ownership. The new owner of the store is less than a block away.
      • 4 Years Ago
      interesting...
        • 4 Years Ago
        More interesting that a bankrupt company was there last year...
      • 4 Years Ago
      Does the fact that GM spent half the year as a private company have anything to do with its drop? This is a list of revenue of public companies, and GM only spent January through the middle of July earning money as a public company. Did they include the revenue from July to December when GM was a privately held company and if so does GM's new accounting practices factor in?
      • 4 Years Ago
      Big Surprise.
      • 4 Years Ago
      Whatever. Who cares?
        • 4 Years Ago
        You do. Enough to read the article and leave a comment.
      • 4 Years Ago
      Oh, boo-hoo! Would somebody please hand me a tissue. *Snicker!*
      • 4 Years Ago
      Profit is more important than revenue.
      • 4 Years Ago
      To erase some confusion, the Fortune 500 ranks US companies based on annual revenue. It is not on value added. It does not include foriegn companies (see Global 500). It is not the bottom line of the balance sheet (net worth) or market cap (stock worth). They are not ranked by profits.

      As automakers tend to sell expensive products that are by and large assembled out of parts made by other people (cars typicaly contain around 3/4 of their value in supplier parts), they tend to rank high on the charts in terms of revenue. However, as the auto industry tends to have relatively low to negative margins, revenue alone is not really a reflection of the value of the company...

      However, I find it interesting that the people who provide fuel for vehicles (Exxon, Chevron, etc.) have higher revenues and are dramatically more profitable than the people who make vehicles...
      http://money.cnn.com/magazines/fortune/fortune500/2010/full_list/index.html
        • 4 Years Ago
        As HP figure out long ago, it's better to be in the market of consumables. You make more money on ink then you do on printers. You make more selling blade replacements on a shaver than the shaver itself. That's why Apple doesn't just make $200 MP3 players but also has the iTunes store.
      • 4 Years Ago
      Wow, GM has only existed since 1908, so being off of the top ten for the first time since 1909 is a big deal.
      • 4 Years Ago
      Frankly it would be bigger shock if after all their problems - and continued ones at that - they remained in the top 10.

      I'm no cheerleader for GM but least anyone forget over the years the company's they've owned and disposed of. From Hughes Aircraft and Hughes Electronics (DirecTV) to EDS they at one time controlled firms which today have strong balance sheets and billions in equity.

      Within 10 years I doubt any automaker will remain in the Top 10 of Fortune's 500.
      • 4 Years Ago
      "By all accounts, things are starting to look up at General Motors..."

      I would like to believe this too, but let's look at the three actual elements that are the lifeblood of any carmarker. 1: product. 2: product. and 3: PRODUCT.

      Cadillac has the CTS, Buick has the Enclave (and maybe the LaCrosse, if they can convince people to cross-shop it), Chevrolet has the Corvette, Silverado, and Traverse, and GMC has its equivalent GMT900 and Lambda rebadges. That's about three-quarters of a single-brand lineup; otherwise, GM's NA range is deeply "meh."

      The fact is, we're still talking about a ginormous company with only a few products that can be reasonably deemed at or near the heads of their respective classes. The company still needs to either trim a lot of fat, or seriously step up its game (hint: the Cruze ain't gonna cut it) before it can expect to earn that top-ten spot from Fortune 500.
        • 4 Years Ago
        Nearly every product that GM has produced since 2007 or so has been very competetive if not class-leading. In fact, if you consider the time frame between 2007 and 2012, GM will have either significantly refreshed or completely redesigned nearly every vehicle in its lineup. Every one of them has competed or will compete nicely in their segements.

        Refreshed for 2007, the GMT900 trucks are the best-selling platform in the U.S. if I'm not mistaken. Collectively, the Tahoe, Suburban, Avalanche, Silverado, Sierra, Yukon, Yukon XL, Escalade, Escalade ESV, and Escalade EXT sold over 57,000 units in March alone. That was over 30% of GM's total sales for that month. Even if most people have shied away from SUVs, GM remains king of the "large truck" hill.

        As far as the rest of its lineup, GM has already released:
        7th-gen Chevy Malibu - 2008 - a far more serious midsize contender, even if not class-leading
        2nd-gen Chevy Equinox - 2010 - one of the best in class
        Chevy Traverse - 2009 - the 4th straight Lamba success
        5th-gen Chevy Camaro - 2010 - has remained the muscle car leader since its relaunch
        2nd-gen Buick LaCrosse - 2010 - kills the ES and has made Buick relevent for the first time in years
        Buick Enclave - 2008 - can't help loving the Lambdas
        GMC Terrain - 2010 - competes nicely against other midsize crossovers
        GMC Acadia - 2007 - Lambda Lambda Lambda
        2nd- gen Cadillac CTS - 2008 - the CTS-V is the greatest luxury sport sedan on earth
        2nd-gen Cadillac SRX - 2010 - much better competitor to the RX

        And in the next 16 months or so we will be seeing:
        Chevy Volt - 2011 - one of the most important steps in alternative energy solutions
        Chevy Cruze - 2011 - finally a compact that not only competes with, but destroys the Asian competition
        2nd-gen Chevy Aveo - 2011 - the RS concept shames everything else in its class save for the somewhat smaller Fiesta
        5th-gen Buick Regal - 2011 - Buick's first true sports sedan in ages will compete nicely against the stuff the Asian brands have put out
        Chevy Spark - 2012 - Compared to other city cars coming out, the Spark should do fine
        Chevy Orlando - 2012 - the much-need HHR replacement will reintroduce GM to the compact crossover segment
        8th-gen Chevy Malibu - 2012 - the 7th-gen hoped to compete, the 8th-gen will hope to lead
        Cadillac ATS - 2012 - Will do to the 3-Series what the CTS did to the 5-Series
        Cadillac XTS - 2012 - A much-needed replacement for the STS/DTS dinosaurs.

        Besides those, GM has plans for a compact crossover for GMC (likely the Granite), a midsize crossover and compact sedan for Buick, and a possible Lambda-based replacement for the Escalade. The next-gen Impala is forth-coming and will hopefully compete against the likes of the Taurus and Maxima, the Corvette will remain the Corvette, and all that's left are the small trucks and work vans.
      • 4 Years Ago
      Let's face it, they're damn lucky to even be in business still.
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