I wasn't surprised to read that Rick Wagoner had been canned as part of the deal to get more bailout money from Washington. Scapegoating is a useful temporary measure for pleasing external critics. But it is often a symbolic act that is done in lieu of any substantive changes. As I have written before, and in detail, I believe that a core problem with GM is their broken culture — see the first post (which has more hits than anything I ever posted) and the follow-ups here and here, plus the comments are very telling.
I wonder, have people at GM changed their behavior in meetings — are the new top dogs still doing all the talking? Are they doing anything to actually get in touch with the experience of owning a GM car? Or are they still acting like all that really matters is the GM pecking order, regardless of the quality of the ideas, the cars, and the experience of owning a GM car? That's the real question. Clearly, under Wagoner's leadership, there was an inability (certainly on his part) to grasp and implement the need for a cultural change and GM still has too many product lines and far too many choices of options (this both complicates the manufacturing and supply chain, and screws-up the selling and buying experience — making it longer and so that people are less satisfied because they have too many choices, see The Paradox of Choice). It seems they are finally trying to do something about it (Anyone want to buy the Hummer brand? GM might give it to you for free!)
I am rooting for the automobile industry, especially for all those people who so desperately need jobs. But as the old saying goes, the definition of insanity is doing the same thing over and over again, while hoping that something different happens. This isn't a bad description of how GM has been ran for years. Time well tell if this change is just window dressing. Of course, a rebound in the economy will help them — but it also will mask the core problems they have if they somehow manage to survive.
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