“It all perception anyway that sells. Not sure how GM can change that.”
It takes time. After all, Toyota and Honda eventually overcame their reputations for shoddy rust buckets.
Agree that changes made years ago could have prevented this collapse. However, there would still be Toyotas, Hondas and Nissans, but in smaller numbers.
Maybe…And not only would GM/Chryco NOT be in the huge financial mess…but the quality of cars would even be better then they are now. Competition is GREAT for the company AND consumers.
It takes time. After all, Toyota and Honda eventually overcame their reputations for shoddy rust buckets.
And they were…they rusted out so early. I just hope it’s NOT too late for GM and Chryco. But I think it is. They’ve been screwed up for so long affecting MILLIONS and MILLIONS of drivers.
Many have argued that one of GM’s failed strategies was to focus on the high profit trucks and SUVs at the expense of their car lines. I tend to agree. They let their car dividions languish.
Mike’s articlle was a good one, although too superficial. I wish it had gone deeper. One excellent point made was that GM was run by accountants rather than “car guys”. That was the root cause of their allowing their car lines to languish and focus on trucks and SUVs. Another good point was that they were using their cars basically as devices to sell their financing packages, making their money off the GMAC arm rather than the sale of the cars. Again, a byproduct of being run by accountants.
It’s long been my belief that when companies lose the understanding of what compells their customers to buy and focus only on the numbers they ultimately falter. I’ve seen it happen countless times. Companies need to be headed by people who understand what’s at the core of their success, and GM strayed from that path long ago. Perhaps they’ll find their way back, but with Washington as involved as it is now I have my doubts.
Companies need to be headed by people who understand what’s at the core of their success
You can even take that further. I’ve seen it at the division or group level within a company. Been working as an engineer for over 30 years. And EVERY SINGLE group/division that I worked for where a engineer (or at least someone technical) heading the group… the group did very well and was profitable for the company. And the groups/divisions I worked with where they put someone with a Business degree in charge…THEY ALL FAILED. The person did NOT have the technical knowledge to lead or even understand what was going on. An engineer learning how to run a business is a LOT EASIER then someone with a business degree learning how to be an engineer. Why do engineers like Dilbert so much…Because it’s TOO realistic. I’ve worked for managers like the Pointy head manager in the Dilbert cartoons. It was a joke. They know the Buz-words…but haven’t a clue to their meaning.
Take a look two of the BIGGEST tech companies in the last 20 years…Microsoft and Apple. Both headed by tech-geeks. In fact if you follow Apple’s ups and downs…you’ll see that every time Steve Jobs left or was no longer in control of the company…it’s profits and market share dropped…and every time he was in charge the company soared.
Wasn’t this guy the one who said, “I don’t know anything about cars”?
Check this out:
| The Colbert Report | Mon - Thurs 11:30pm / 10:30c | ||
| Car Shout - GM & Chrysler | |||
| www.colbertnation.com | |||
|
Stephen Colbert is a comic genius.
He and his writers consistently point out instances where “the emperor has no clothes”.
I do not believe that it is too late for GM. Harley-Davidson went through some tough years as well and they came back. Would still be booming if the economy was.
GM is an American icon and as such I believe it will take more than this donwturn to tank the company.
Our history is filled with American Icon companies that are no longer in existence today.
Agree; Studebaker, Nash, Hudson, Kaiser, Willys, Kelvinator, Outboard Marine Corporation, Singer Sewing machines, Ansco Cameras, Argus Projectors, Underwood Typewriters, and so on. I have actually owned some of these products.
Companies come and go, get absorbed by more agressive competitors, or just fade away since they don’t innovate. Burroughs Busines Machines was once a powehouse, as was National Cash Register.
You can add to the list some biggies…
Wang
Cabletron
F.W. Woolworth
And who were those financial biggies again…?
Why suddenly does the executive branch feel we need to bail out failing biggies?
Or is this simply Ben Bernenke run amok? That man is entirely too power hungry.
And EVERY SINGLE group/division that I worked for where an engineer (or at least someone technical) headed the group…the group did very well and was profitable for the company. And the groups/divisions I worked with when they put someone with a Business degree in charge…THEY ALL FAILED.
GM is a good example. When Bunkie Knudsen and Ed Cole ran divisions, the cars were winners. The Chevrolet V-8 introduced in 1955 was an engineering marvel designed by “car guys”. With Roger Smith as CEO, who was not an engineer, troubles started in the company. Chrysler almost went broke in the early 1960’s when Lynn Townsend was in charge. He was a business type, not an automotive engineer. On the other hand, when Lee Iacocca ran Chrysler, the company was profitable.
The MBA degree was originally intended for engineers in order for these engineers to gain management skills. Now many MBA degreed people come via the business route.
I think that the next American insitution that will have problems much like GM is higher education. Higher education has become top heavy with management types who can’t or won’t make decisions and have little understanding of education. The big concern of many of these administrators is to get the students through commencement without much thought as to whether they are really educated just as the auto industry wanted to get as many cars as possible through the assembly line with much thought as to quality.
Also IBM. IBM at one time was the giant in the computing field.
“Burroughs Busines Machines was once a powehouse, as was National Cash Register.”
NCR is a powerhouse today. They are the largest manufacturer or ATMs. They just changed their business focus. So did Singer. The others did go out of business, but refocusing efforts into something more productive is another avenue.
IBM is still a giant in the computing field. They had revenues of $103,600,000,000 in 2008. What do we call them if they are bigger than giant?
A tenth of a trillion?Wow ,sounds like they are doing pretty good-Kevin
Where was this guy when GM needed his 20-20 hindsight?
I have possibly a broader view. The oriental car manufacturers are having their day in the sun but their day of trouble will come just as it has for US car brands although now it does not appear that way. GM, Ford and Chrysler are a lot tougher than people might think having survived the early years and the depression.
Meanwhile I am supporting US car brands that employ US car designers, marketing people, and suppliers and pay dividends to mostly US stockholders or whatever is appropriate for GM these days. I am of the view that US car companies will tend to use US suppliers for things such as machine tools, electrical controls, and other manufacturer’s goods and the like in their factories, multiplying the US employment effect.
My job was dependent on the US car industry in a big way. If I were to be a recent college graduate today, I seriously doubt that I would find the job that I had.
If anyone here is out of a job, I will refrain from asking what kind of car you drive; you may have already figured out if your car buying actions are overall contrary to your own prosperity.
We believe in our country so we have 08 and 09 GM cars and I can assure you that we feel good about that.
I fully expect the Vibe to become a Chevy.
Sadly, I expect that GM will probably sell the rest of the Vibe plant to Toyota and keep on making BUVs like the HHR and the Avaeo.
One of the main selling points on the Vibe was that you could get a Toyota for $1000-$2000 less.
Yes, and Harley Davidson also benefited from government assistance (in the form of a tarriff on import bikes over 700cc (1983-88)).
H-D also had feirce brand loyalty associated with its “outlaw” image. On the contrary, most new car buyers (excepting sports cars?) are only mildly brand-loyal.