General Motors Company, commonly known as GM, is an American multinational car manufacturing company founded in 1908 in Michigan, USA, mainly designing and manufacturing vehicles and vehicles parts. Originally, GM acted as a holding company for the Buick and McLaughlin Car Company of Canada Limited. Nowadays, it produces vehicles in 37 countries under thirteen brands (Global Car Brands, 2015). Affected by the financial crisis in 2009, GM announced bankruptcy and experienced restructuring. The current company, General Motors Company LLC, was founded in 2009, after the bankruptcy of the old General Motors. The new company purchased the majority of the assets of "old GM", including the name "General Motors". In 2010, the reorganized GM made an initial public offering and returned to earn profit again. General Motors has a long history and led global vehicle sales for 77 consecutive years, excelling in both domestic and international markets. In its domestic market, the US, it has the largest …show more content…
Frequently referred to as an "extraordinary stimulus" project, QE is essentially when a central bank buys bonds to lower interest rates and aimed at reviving the economy, help free up credit and make loans cheaper to consumers and businesses (ref 6). There were three rounds of quantitative easing. From late 2008 to 2010, the Federal Reserve began the first round of QE, by buying nearly 2.1 trillion of treasury bonds and mortgage-backed securities. This is a great success commented by many economists since it helped increase the economic growth by 2.8% (ref 5) and the mortgage rate dropped immediately. The QE policy is to some extent good news for automobile industry. The interest rate is as low as near zero, people are simulated to consume more, which shifts the AD curve to