General Motors Co. and Ford Motor Co. are included in the top 10 largest companies in the U.S., according to Fortune magazine’s recent ranking of the top 500 firms. Over 23 auto-related firms were included in the list. According to the list that ranks companies based on annual revenue, GM is at No. 5, from being at No. 8 in 2011.
Ford is now ranked No. 9, just one place higher than No.10 in 2011. If you’re wondering about Chrysler Group, it wasn’t even considered since Fiat S.p.A. of Italy is controlling it now. Johnson Controls Inc. is the highest ranked auto supplier on this list at No. 76, a drop from being No. 67 last year. AutoNation Inc., which stayed at No. 197, is the top ranked dealership group. Fortune mentioned that GM’s revenue in 2011 rose by 11% from 2010 to $150.3 billion.
The magazine said that Ford’s 2011 revenue rose by 6% from 2010 to $136.3 billion. Fortune’s editor-at-large, Shawn Tully, believed that GM’s success was attributed to the company’s reduced costs and higher sales. Tully said that GM had presented a fleet of in-demand models since late 2010, led by the compact Chevy Cruze and the subcompact Sonic.
Since GM emerged from bankruptcy in 2009, it was able to cut costs to the point where it makes money when the U.S. car market hits 10.5 million units. This is 5 million units below GM’s previous profitability threshold. The magazine also praised Ford’s CEO Alan Mulally for turning around the company.
Its stock has resumed paying a dividend during the tenure of Mulally. The publication stated that more importantly, the company is making and selling “lust-worthy cars” again. Its profits increased by 208% last year, a growth that’s comparable to what’s happening with the world's oil and tech giants.
Certainly, other car makers are not experiencing this type of growth. In a statement, Fortune said that the 500 U.S. companies ranked this year have 17 million Americans and 25.8 million people worldwide under their employment. They also have a combined $824.5 billion in profits during 2011, higher by 16% from the prior year.