Interesting article on qz.com. GM layoffs can be traced to its quest to turn people into machines. Link enclosed.

https://qz.com/1510405/gms-layoffs-can-be-traced-to-its-quest-to-turn-people-into-machines/?utm_source=YPL&yptr=yahoo

It basically relates how GM’s mistrust of its workers ultimately prevented it from making great cars.

This quote from the article was something I hadn’t fully realized

“As automotive analyst Maryann Keller recounted in her 1989 book Rude Awakening, one GM executive observed that, between 1980 and 1985, the company shelled out an eye-popping $45 billion in capital investment. Despite that spending, its global market share rose by but a single percentage point, to 22%. “For the same amount of money, we could buy Toyota and Nissan outright,” said the executive—which would have instantly bumped GM’s market share to 40%.”

It is sad that GM has never really learned what ails it. It just keeps repeating the same mistakes.

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This is still alive and well even in the lower ranks of management today. I could, but won't get into the countless scenarios in how GM management wanted to improve on a process, only to make it worse. They never ask the most qualified contributors before decisions are made, and typically find out in the aftermath the decision was incorrect.

The Dilbert comic strip is very real. It is very much alive and well today. What companies need today, are intellectuals and critical thinkers, actual think tank kind of people. They settle for much less, and these are the results.

Good history lesson. This sentence stood out

“characterized by a repeated impulse to bet on fancy, futuristic but unproven technologies while undervaluing its workers”. I hope enough of the pre-bankruptcy behaviors are gone for GM to survive. Midway through the article I thought if I just substitute Tesla for Toyota it sounds remarkably similar to today’s happenings.

The GM of the 1980s and 1990s went bankrupt in 2009 and was dissolved due to those poor decisions. The largest expense for a manufacturing company are raw materials, followed by labor. If the company needs to free up money to increase their investments in certain areas, reducing the number of employees on their books is the biggest target. You have to hope the money they free up is invested in the right area for the long term health of the company.

Thread regarding General Motors layoffs

Interesting article on qz.com. GM layoffs can be traced to its quest to turn people into machines. Link enclosed.

3 replies (most recent on top)

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