NEWS > BUSINESS > BANKRUPT GM STILL HESITANT TO MAKE CARS PEOPLE WANT TO DRIVE

BANKRUPT GM STILL HESITANT TO MAKE CARS PEOPLE WANT TO DRIVE

June 3 2009

Detroit, MI – The bankruptcy of the second oldest automaker in The United States came as a shock to no one. For decades observers had been predicting doom for General Motors as companies such as Toyota and Honda began eating up ever more of the international car market. It took a near complete collapse of the financial system but finally the company has begun to realize that business as usual just doesn’t work in the modern world, though hesitantly.

With the company filing for bankruptcy and essentially ending their reign as an
independent company many had hoped that the company would be able to change its fortunes but an ingrained corporate culture may make that more difficult than anyone had believed. The departure of CEO Rick Wagoner had signalled for many a changing of the guard that would pave the way towards the future, but increasingly the new owners are finding that the people working for the company simply aren’t interested in changing the way they have done things and want to continue to make the exact same cars they have been making for years.

“People who work for car companies aren’t special. They are just like normal people
with the same faults and deficits that everyone else has. One of the most common failings that many people have is falling into a rut and a sometimes unhealthy attachment to the past and that seems to be pervading the very fabric of General Motors and their workers. It’s going to be an uphill battle to change that,” said Scrape TV Business analyst Ken Green. “By cutting a few of the brands they are already forcing a change. It’s unlikely that anyone will be bold enough to just start building a bunch of Trans-Ams. That kind of thing is likely to get noticed. Making those cuts will force people to change and hopefully break them of the habit.”

Among the cars most loved by GM employees are the Cadillac Cimarron, the Cadillac
Allanté, the Buick Invicta, and the GMC Syclone. Most of the favourite cars have long been discontinued and are unlikely to see a resurrection under the new management which includes the governments of The United States and Canada, and the UAW, though no firm decisions have yet been made.

“People become attached to things for reasons that may seem irrational to outside observers. Sometimes it’s association, sometimes some aesthetic, but regardless of the reasons people tend to remain very loyal to what they love, especially when what they love is a car and a GM one in particular,” continued Green. “Of course personal affection is not necessarily a sound basis for making business decisions especially when a company is in such a dire
financial position. My guess is the new owners who for the most part won’t share the same type of affections and make decisions based on sound and rational business prospects. There’s also a good chance that they will have different favourites as well.”

Reportedly the Canadian government has a great deal of affection for the 1985 Fiero but the end of Pontiac made the return of that car impossible. President Obama reportedly favours the 1978 4-door Buick Electra, which is also an unlikely comeback story.

“From what I’ve heard there’s a lot of heavy sighing and sideways looks going around
the GM headquarters. There is a concern that once the bankruptcy ends and the new owners aren’t around as much that they will fall back into their old habits and that wouldn’t do anyone any good,” continued Green. “Obviously it took a traumatic event like this financial collapse to force them into reassessing themselves and their behaviour and that is a good thing. Unfortunately if things don’t fundamentally change they are going to go back to making cars that no one wants to buy for exorbitantly high prices and then we may end up in the same position again.”

It is not expected that the new cars made by the revamped version of the company will strike much of a chord with consumers or result in significant sales.    

William Ashford, Business Correspondent

NEWS > BUSINESS > BANKRUPT GM STILL HESITANT TO MAKE CARS PEOPLE WANT TO DRIVE