Post by
Jesda »
https://forums.nicoclub.com/jesda-u7038.html
Wed Aug 04, 2004 11:31 pm
Warning: I'm tired and rambling...
So I just watched Michael Moore's "Roger and Me" tonight for the second time in 6 years. The last time I watched it, my automotive and economic background was limited. Now, older and with a better insight on how the world works, I think I dislike Roger Smith even more than Michael Moore -- strange coming from a libertarian like myself.
In fairness to Smith, GM's necessary vehicle downsizing program began in the early 70s, but resulted in the downgrading of quality with junk from Chevy (Cavalier, Corvette), Buick, Olds, and Cadillac (any of the above) littering American roads. Cost cutting seemed to be as dominant as efficiency downsizing, if not moreso.
Badge engineering, another cost-cutting effort, destroyed brands like Buick and Olds. Consumers eventually stopped seeing Cadillac, Buick, Chevy, and Olds, and started to see only GM. An Olds looked and felt like a Cadillac. A Buick or Chevy was hardly different except in trim levels and features.
And despite all of his hack-and-slash short-term profit-maximizing efforts, GM's market share declined from 45% to 35% by 1990. The only thing he seemed to help create at GM was Saturn, an investment that has proven itself to be charming, but completely unprofitable even to this day.
So what is Roger Smith's legacy? GM is no longer seen as America's hero to the working man. Oldsmobile is dead. We have to put up with Saturn (ugh). Flint, Michigan is a wasteland. And GM's market share is smaller than ever. Blame competition if you want, but the real blame goes to shortsighted shareholder whores without a long-term corporate vision.
Anyone can cut costs and put results on paper, making themselves look good for the moment and ignoring subjective factors that may be equally or more important.But only successful men and women in business can LEAD. Smith was NOT a leader. He was a pathetic number pusher.
I'm also sick of hearing guys like William Clay Jr. whine about the UAW. Yes, the UAW is a strong impedement to progress. But more damaging than unions are nonsensical short-term strategies that destroy quality, customer loyalty, and the national economy. The UAW became a cheap excuse for the folks at the top to continue their self-destructive policies.
They come in, lay off a few thousand people, close some factories, cut some corners in quality, turn a larger profit, steal all the glory, take all the credit, and leave a mess behind them.
Note: The Big Three today are GM, Ford, and Toyota.
-Jesda