Will GM survive this last debacle?

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The CEO is being served the 3rd degree by congress, and sales of GM products seems to have been hit with a battering ram. Will GM survive this latest ordeal?

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Type: Discussion • Score: 2 • Views: 1,828 • Replies: 5

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Unless a celebrity - like Ralph Nader or Oprah steps up and becomes the advocate for the public, it will be forgotten in 6 months.

People remember the Corvair - but have forgotten the Firestone Tire debaucle.

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They may have to merge with a good name, like Ford, to survive.

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@edgarblythe,

GM sold 10k more vehicles last month, but the media coverage about their late recall that killed some young drivers is bad press for any company - especially a company that sells cars to the young.

I think the media coverage on the ignition switch problem that would have cost only a couple of dollars to repair was ignored.

Just wondering....

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Quote:

Yet the "new" GM remains bedeviled by a decades-old problem: stagnant or sliding share of sales in its home market.

The past two years have seen one of the biggest new-product blitzes in company history; GM has launched new products to replace 70 percent of its U.S. sales volume since 2011.

But GM's U.S. market share remained stuck at 17.9 percent last year, the same level as 2012, and down from 19.6 percent in 2011, when it was only two years out of bankruptcy.

While GM executives voice optimism that the company will soon post gains, they acknowledge that changing perceptions after decades of lackluster products will take time.

"Market share increases are not instantaneous," Mark Reuss, GM's new chief of global product development, told reporters at the Detroit auto show on Monday. "We've got a lot of baggage. Don't underestimate what people thought of us, or these brands, through these hardships and 30 years."

http://www.reuters.com/article/2014/01/14/us-autoshow-gm-marketshare-idUSBREA0D03J20140114

Shedding debt, liabilities and no longer wanted assets did nothing to deal with GM's #1 problem , great difficulty in producing products that people want to buy. It also did little to deal with GM's #2 problem, a cancerous culture. Did anyone at "new GM" step up to the plate about this ignition problem voluntarily, that is before they were forced to by people outside of the company? Nuff Said.

Shrinking the company without coming up with products that people want is not a sustainable business model, GO ask KODAK, or Blackberry, or Motorola or...

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@hawkeye10,

Most problems of production companies can be blamed on upper management and their inability to bring products to the marketplace that excites the consumers. If they have quality problems on top of that, it only proves management doesn't have the skills to remain competitive.

When problems are first detected, they must do everything in their power to regain the confidence of consumers. That was proven by Johnson and Johnson on the problems they encountered with Tylenol. They not only did an immediate recall with expansive media ads, but refunded monies to consumers.

This is Johnson and Johnson, a respected name.

Quote:

Our Company
Caring for the world, one person at a time... inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

Our Family of Companies comprises:
The world’s sixth-largest consumer health company
The world’s largest and most diverse medical devices and diagnostics company
The world’s fifth-largest biologics company
And the world’s eighth-largest pharmaceuticals company
We have more than 275 operating companies in more than 60 countries employing approximately 128,700 people. Our worldwide headquarters is in New Brunswick, New Jersey, USA.

A company respected by almost everyone.

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Will GM survive this last debacle?

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