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Can GM Get Back On Their Feet?

By: Nick Messe


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General Motors has taken a huge hit in the last few months, and people are wondering if it can restore itself to its former glory. With the tremendous assets it has and its skilled workforce, not to mention the smarts of the folks that are running the ship, it seems that it is possible. There is debate, however, of how exactly this feat can take place.

Some folks say that GM must rebuild its tarnished image. For years and years GM has been seen as this huge giant, with all sorts of vehicle lines and dealerships, that has always been on the automotive front line. Then problems loomed large, and were compounded by the biggest problem of all, the recent huge economic downturn. Customers began losing confidence in the GM product line and sales plummeted.

It appears that GM simply makes far too many vehicle models and brands. They have tried to impress the public with the vast choices available to them, but instead, they have overwhelmed them. Perhaps they can make money producing all these lines, and maybe they can't. The bottom line is that the cars they do offer must be what the consumer wants.

At first it seemed that fuel efficiency was paramount, but lately fuel prices have stabilized and consequently truck and SUV sales have begun to rise again. It really is quite the problem deciding what to keep, what to give up, and what new types of vehicles to concentrate on. GM has discontinued Pontiac altogether, and is trying to divest itself of the Saturn, Saab, and Hummer. This has got to be the biggest question that GM has to confront in order to recover.

In its efforts to restructure, GM is working on closing up to fourteen manufacturing plants. Thousands of workers have been let go as well. If more closings and terminations need to take place to further streamline their business, GM has to stay on the good side of the giant union United Autoworkers (UAW). Concessions could cost them dearly.

While rebuilding its empire, GM will rely heavily on the huge network of companies that supply car parts to them. These companies are suffering themselves in the face of the automotive crunch. Many have closed, or begun new contracts with other car companies. It will require some sweet talking to hammer out new agreements, and restore trust to ensure that the necessary parts come rolling back to the new GM.

GM has to become quicker on its feet than in days of old. This will involve being able to make quicker decisions and not ponder things endlessly. Upper management has to function under a new corporate ideal, so that when cuts are necessary, and new vehicles have to be decided upon, they will be able to respond quickly. There are good heads at the top, but some will have to be let go in the reworking process.

Article Source: http://depositarticles.com/

Nick Messe is president of The Lead Frog LLC. Rogers Auto Group has the most affordable cars in the Chicago land area with the best collection of Illinois Chevrolet and other Chicago GMC cars and trucks. When you buy a GMC vehicle you are buying today's innovation for tomorrow's future.

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