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Report - USA - GM's Big Cuts
USA -Yhe Car Connection/WJR Auto Report -23 Nov 2005: -- The big cuts announced at General Motors this week are "tough medicine," in the words of CEO Rick Wagoner. The question is whether GM has taken a large enough dose to cure what ails it... Sadly, it's not the first bitter pill GM has had to swallow over the years. It ordered a procession of cut backs in the wake of the 1979 oil crisis. And in 1984, the company completely reorganized, in an ill-conceived plan that virtually paralyzed operations for two years. That prompted a series of follow-up cuts and reorganizations that started to feel like the plan-of-the-month club... Yet in 1992, it was obvious that things weren't working, as GM came within an inch of bankruptcy. Since then, the company has continued to cut and reorganize. But as Wagoner pointed out, the pace of change in the auto industry has been startling, and so, still more cuts are now needed... Yet there's one constant in the business, and that's the need for good product. And that's where GM has routinely fallen short. If it doesn't deliver soon, there'll be more tough medicine needed later...
posted by Unknown @ 10:54 AM
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