Essay - General Motors: a Perfect Storm of Delaying Much-needed Factory Shutdowns...

General Motors: a perfect storm of delaying much-needed factory shutdowns, ignoring a ch*****nging auto industry structure, and high x-inefficiency

Once upon a time, it w*****s said that, as GM goes, so goes the nation—in other words, that the *****motive manufacturing behemoth w***** such an integral part of ***** national economy, that ********** prosperity *****d America's prosperity were inexorably intertwined. Now, however, GM struggles to stay afloat in a newly competitive world c*****r market, where Toyota has come to dominate the traditional American automotive brands. "***** ***** seen its slice of U.S. vehicle sales slide steadily over ***** last 30 years, taking its share of the U.S. market down to 26.2 percent in the first 10 months of this year, compared with 43.8 percent in 1980. (Isidore, "Many problems dog the No. 1 automaker,"2005)

Streamlining and shutting ***** old, inefficient factories were deemed ***** of GM's necessary survival strategy. GM was so desperate to close inefficient factories that it renegotiated an agreement w*****h the powerful United Auto Workers union (UAW). The ***** encouraged ***** workers to take early retirement packages so that GM could hopefully stay solvent and honor its commitment to its many current and retired employees to pay wages, pensions, and benefits. *****, all ***** workers are guaranteed full pay and benefits through the end of their contract in September 2007, whether or not the company has work for these employees. (Sahadi, 2005)

This means that GM can ***** outmoded assembly, stamping, and power-rain or eliminate un***** shifts at its existing plants. However, "with the announced closings, ***** is essentially keeping its capacity of large sp*****t utility vehicles ***** pickups intact, even though big SUVs sales have slumped in recent months ***** the face of *****er gasoline prices...The plan is essentially as expected, meaning not terribly aggressive," observed one auto industry insider. (Isidore, "GM's Big Shakeup," 2005)

In other *****, al***** there will be some reduction in the costs ***** production, ***** terms of maintaining the s*****aries of the workers at these plants, and the overhead costs, the company's failure to address the *****-wide changes that ***** shook ***** world car market remain.

After years of unquestioned industry dominance, GM was ***** prepared to shift its approach to making *****s to cope with the ***** edge possessed by Japanese au*****motive manufactures such as Toyota since the **********. "To be sure, GM h***** seen sales jump from time to *****, but always because of costly incentives, like zero-interest financing after the Sept. 11 attacks, or the 'employee pricing' ***** summer. Ford and Chrysler have been forced to follow GM's lead on incentives, though ***** Asian automakers have largely avoided them by *****fering more attractive vehicles." (*****, "Many ***** dog the No. 1 automaker," *****) More attractive vehicles do not necessarily mean more luxurious vehicles—far from it. Rather by offering inexpensive, reliable and mid-sized cars tailored to the average consumer desiring fuel efficiency, Toyota has gained an industry edge. It ********** the desires of the public, ***** also deploys a *****