PART I - Early History of GM 1904 GM founded by the visionary but unpredictable William Crapo Durant.

1910 GM was close to collapse, dogged by uncertainty, mismanagement; Durant u nable to pay his workers or suppliers, rescued by infusion of a $15 million loan from Durants bankers, who assumed control of the company as collateral. 1914 GM becomes second-largest car maker in US but distant second from Ford 1915 GMs stock price booming once again, Durant set out to reclaim his company from the banks by buying back the company shares. 1915 Pierre du Point buys 2000 GM shares and joins the board as Chairman. Du Point wanted rigorous controls and structures like in his own DuPont Company. Durant wanted du Ponts financial backing, but not his advice. Constant friction b etween du Pont and Durant. Eventually, Durant gave in reluctantly. Pierre du Pon t gained the upper hand because he had the money. Increasingly, Durant relied on du Pont to help out his cash-starved company. 1918 DuPont Company buys $25 million of GM common stock equal to a 23.8 perce nt stake. In exchange for its cash, DuPont gains control of the board s fi nance committee. There followed an ill-advised program of expansion, vertical integration by buyi ng a major supplier, dramatically increasing production capacity. Also bought Fi sher Body Corp. for nearly $28 million, and GMs workforce increases exponentially . As the expansion continued, DuPont was required to add fresh infusions of cap ital. 1919 - 21 DuPont Co. had increased its investment in GM to $49 m, a 28.7% stake . But postwar recession sets in. Demand collapses, rival Ford slashes pric es. From 1920 to 1921 Ford increases market share from 45 to 60% while GMs market share falls from 17 to 12%, diminishing share of a diminishing marke t. GM sales decline by three-quarters between summer and winter of 1920, and i n Jan 1921 vehicle production hits all-time low.DuPont Co. contributed still more money, raising its stake to 36%. 1921 Having restored the companys ability to operate, Pierre du Pont took a hug e step in ensuring that GM wouldnt run into such problems again. In Decembe r 1921, Durant is forced to resign and Pierre takes over the presidency of the company. He set about reorganizing and revitalizing GM. 1923 Alfred Sloan is appointed president, with Pierre du Pont as Chairman. S loan is described as a management genius. 1928 GM overtakes Ford as the US number 1 automaker. Pierre du Pont retires a s chairman. There followed a long period of growth and unprecedented prosperity.