Many recall the old adage, “As GM goes, so goes the nation” and General Motors is going, going, and some fear it may soon be gone! General Motors has a habit of cutting costs, jobs, and benefits. Throughout their history this strategy has proven to be ineffective and yet, only weeks ago, they announced that they would continue to do as they have done.
As GM cuts, so too do other American industries and institutions. While investors temporarily profit from this ploy, little else does. Let us look at the legend of this corporate giant, its philosophy, and practices. Then compare and contrast these with those of Toyota. Let us hope that one day, General Motors will do the same.
The decline of General Motors began long ago. During the energy crisis of the 1970s, America changed. GM did not lead the cultural shift, nor did it swing with it, though they may have lead what followed.
The public and foreign industries alike, realized that the Earth could not and would not provide an endless supply of petroleum. Adjustments must be made; dependency on fossil fuels had to stop. Citizens concluded that they could no longer drive gas-guzzling engines; they would prefer economical automobiles. Consciously, people chose smaller cars. Yet, General Motors did not make these. They delayed. Customers went elsewhere.
General Motors acted as though there was ample oil; availability was merely a political ploy. They believed or hoped that consumers would come around. Then, GM would be ready to deliver. GM would ride-out the energy storm, and they did, or so it seemed. Slowly, they realized that times had changed and they needed to change with the times. However, it took this corporate giant time to turn left, right, or even to move straight ahead. Once they did move, they were lumbering. General Motors did not deliver as quickly as other automobile makers did; nor did they deliver as well. [The same could be said of many American industries and institutions.]
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