Reason for downfall in rank of general motors from 3rd place in 2007 to 4th place in fortune 500 company list?

Question

Reason for downfall in rank of general motors from 3rd place in 2007 to 4th place in fortune 500 company list?

Answer 1

The Fortune 500 is based upon revenues.  Between the 2007 and 2008 list, GM's revenues dropped over $38 billion (down from $220 billion to $182 billion) while Chevron's revenues increased from $192 billion to $210 billion, putting them ahead of GM.  GM is only $4 billion in revenues ahead of ConocoPhillips who is in 5th, so unless GM can do something, they may drop even lower on the list.

Answer 2

The previous responder is correct, but it should be pointed out that GM's revenues are based on production, not on actual dealer sales. Given the company's own production forecast, it is virtually guaranteed that GM will fall to at least 6th place on the Fortune 500, with Conoco Phillips and GE surpassing them.