General Motor

Topics: General Motors, Alfred P. Sloan, United States Pages: 3 (847 words) Published: April 26, 2013
At the new General Motors, they are passionate about designing, building and selling the world’s best vehicles. This vision unites of GM as a team each and every day and is the hallmark of their customer-driven culture. Based on an article published by Uncommon Thought in 2005, one of the biggest concerns relating to the day to day operations of General Motors was the increasingly erratic cost of fuel. Because GM relies on a steady supply of fuel for transportation of their vehicles and vehicle parts, high gas prices caused a significant reduction in General Motor's profits,resulting in cutbacks wherever possible. While cutbacks in staff, advertising and operations presented a temporary solution to GM's budget, their long term affects were harmful to the company, resulting in reduced quality, reduced sales and a sharp decline in GM stock. According to a report published by Bloomberg Business Week in 2005, another issue that was directly contributing to problems at General Motors at that time had to do with the company's inability to compete with its foreign competition. With foreign automakers manufacturing and selling vehicles at prices far less than GM could afford to, budget conscious consumers turned to foreign autos as a means to save money. Because of the economic issues General Motors was facing, the company simply could not lower their prices enough to compete without creating economic hardship to its employees and investors. The cost of operations also played a large part in the problems faced by General Motors. Already facing economic hurdles, governmental demands for tougher fuel standards posed an increased risk of economic hardship, forcing the company to spend money it did not have to redesign and improve its fuel models. According to an article published by Economist's View, in as early as 2006, General Motors management was in heated negotiations with union representatives from United Auto Workers (UAW) over high wage and benefit...
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