One former GM employee said the company's management’ CULTURE needs an almost immediate overhaul if GM is to start producing the vehicles it needs to revive sales and return to profitability. This statement indicates there are some things that are fundamentally wrong with GM. To start with, GM faced the consequences for what GOP warned every one about for the last 2 years in 2009 that how our auto industry consumes more oil if we don’t switch from gas guzzlers to electric cars, hybrids, and fuel cells, and the compact cars, the key player in the carbon-conscious automobile market of the next ten years, especially one powered by diesel engine. Also, GM has lost its ability to develop small cars with the sale of its Opel subsidiary to Canadian auto parts maker, Magna. It was an erroneous move by the GM leadership due to lack of foresight on global competition.
And the second biggest problem was the UNION. The unions have too much to say in GM’s work labor on how they get paid for the rest of their kids’ lives. The communist style workers manifesto called a collective bargaining agreement lead to huge debts for GM filing for bankruptcy.
It is another failure of leadership all around starting with Wagoner and his board of directors to the enablers in congress led by a Michigan delegation that looked the other way for years, to the Bush administration and congressional democrats, who proved to be better at panicking and throwing our money at the mess than getting tough.
The auto industry leader, GM, unbothered by competition and looming threats, began to coast on its former glory, however, and bypass such areas as consumer preferences and industry innovation.
Although there are many factors that contributed to the company’s long, slow bleed, the three fundamental issues are management’s consistent failure to do the very things that made the business so successful initially.