Posted on 06/01/2009 4:02:30 AM PDT by Corky Boyd
Today we will see a different General Motors. It is a sad ending to a state of affairs that should never have happened. There are many reasons for what occurred, some like union issues were truly beyond GM’s ability to resolve. But most were of GM’s own making. I’ll touch on a few.
The seeds of GM’s downfall came from a management culture that was bureaucratic and averse to self criticism. But it was Roger Smith, a clueless yet arrogant Chairman and CEO, who did the most damage. Smith was an accountant who saw his role as reorganizer and a cost cutter and failed at both. He took over in 1981 in the depth of a recession that had devastated car sales. His first mistake came in early 1982 when talks were reopened between GM and the UAW to address the massive financial losses. The UAW expressed willingness to permit short term give backs in exchange for profit sharing when times got better. But GM did not exhibit the sense of urgency the talks should have had, probably from a sense of distrust Smith had for the UAW. It came to a fiery conclusion when the UAW obtained a copy GM’s
(Excerpt) Read more at islandturtle.blogspot.com ...
My choice is Roger Penske."
Right On! While I've owned a number of used GM cars & trucks, I've never bought a new one. However, give Penske (often called "the General") 5 years at the head of GM and I might consider a new GM car.
Penske IS a car guy and Penske gets things done...and gets them done right!
I don't see it ever working, either. Although I've never been a fan of GM because of their quality issues, Obamalamadingdong has ensured with absolute certainty that I will never, ever buy or rent a GM car ever, regardless of whether or not GM returns to profitability. I've run into a bunch of folks recently who've said the same thing and some of them were die hard GM fans. I've read estimates that the gubmint will have to throw in something north of $100 billion of our tax money to "save" GM and that still might not be enough.
Good post. Interesting slice of the history/legacy of a couple of GM managers. Thanks.
I think that the UAW is just trying to keep GM and Chrysler viable long enough to try to unionize the forgein maker plants in the US-Toyota, BMW, Mercedes, Honda etc. If they can persuade those workers to unionize “their problems will be over”. The govt will try to grease the skids by passing “card check”. The UAW won’t be able to sell the workers on hourly pay or benfits-but will try to persuade those workers that by unionizing their retirment will be much better. I don’t think that the UAW can sway them with current pay and benefits-I would be suprised if the guy on the line in Detroit makes a much as the guy on the line at the BMW plant in Greenville SC. BUT the UAW will try to convince them that by being in the UAW their retirment will be much better. The only way GM, Chrysler and Ford survive is NOT by making better vehicles, and doing so cost competitively-its to drag the competition down to their level of “quality”.
what kind of a person will buy a GM anything?
when that 60% becomes zero (along with the canadian gov share becomes zero) THEN perhaps one would look at them.
But NOT these idiot micro cars that can’t hold a second thought.
I think your sentiments are correct.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.