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Using Buick as a foundation, he established General Motors (GM) as a holding company in 1908. His revolutionary idea was to acquire multiple car manufacturers and parts suppliers, creating a broad and diversified automotive conglomerate, mirroring his earlier success in transportation and manufacturing.
Within just a year, GM acquired 13 car companies—including Oldsmobile and Cadillac—and 10 parts manufacturers, swelling its capital to around $60 million amid rapid growth. However, a mild recession in 1910 hit the company hard, revealing strength deficits and liquidity issues. Durant, overly optimistic, had neglected to build cash reserves or fully integrate acquisitions. When GM struggled to pay its debts, banks intervened to save the company under strict conditions.