GM: A Mighty Icon's Reinvention

Updated on July 10, 2009.

General Motors announced Friday that it completed the sale of its strongest brands and other assets to a new company that's funded by the U.S. Treasury Department. The sale allows the auto maker to swiftly emerge from Chapter 11 bankruptcy protection and launch the "new GM." It’s a turn of events that few could have envisioned 50 years ago, when the company was on its way to becoming America’s dominant auto maker.

Indeed, since its inception in 1908, General Motors evolved into an icon of corporate America. The innovations introduced by its executives and engineers shaped the cars that Americans drive and cemented the automobile’s role in shaping the nation’s society for the latter half of the 20th century. More than that, though, GM became deeply intertwined with America’s economy, politics and culture.

A few examples: In 1911, GM revolutionized the American automobile with the introduction of the electric self-starter on a Cadillac, making cars safe and easy to start. Until then, drivers had used hand cranks, which broke numerous shoulders and caused several deaths. Years later, GM helped carry U.S. troops through World War II when it transformed its assembly lines to roll out tanks and ships. The firm remained profitable during the Great Depression and in 1937 allowed its workers to unionize, marking a major breakthrough for organized labor. And in the 1950s, GM became more than a symbol of corporate America. It became emblematic of what corporate America could help you achieve. Work hard and your family will own not one but two Oldsmobiles. Or maybe a red Corvette sitting in the driveway.

The future for GM is looking much different. The company declared bankruptcy on June 1 then promptly laid out a plan to create the “new GM.” By early July, the company sold its most viable assets to a company funded by the U.S. and emerged from that bankruptcy. Now, the U.S. government is in the driver’s seat with ownership of almost 61% of the company. A health trust held by the United Auto Workers union has a 17.5% stake, GM’s bond holders control 10% and the Canadian government would get 11.7%.

It’s been a long road to the auto maker's bankruptcy and the creation of the new GM. SmartMoney took a look at 13 key moments over the last century that helped shape GM and the American automobile. Of course, no timeline could capture every key GM event — but here are some of particular importance to the company and the nation.