Thursday, December 08, 2005

Saving General Motors: 105

101 Revisited: Idea 02...

A friend candidly told me that the various divisions within must be kept if the General Motors Corportation is to survive and I whole heartedly disagreed with him. He made, howbeit, a rather compelling point that these various brandnames are the very reason the people buy, say Pontiac over Oldsmobile or Chevy from Cadillac.

I agreed with him, only to the extent that my friend's point that many of these people are Detroit (okay, Michigan and quite possibly, the Great Lakes) bound and they, and or close relatives have worked for these respective divisions. Longevtivity does count for something and salespeople are only too willing to capitalize on nostalgia: I see far too many old people driving Detroit steel not to see my friend's point.

However, there is a compelling reason for eliminating many, if not all divisions, by name, in General Motors and it's called saving money. Each division carry around a series of dead weight in the personages of a president and vice-president. These have their respective executive secretaries and then there are paper pushers and bean counters attached to them.

Eliminating these divisions would save substantial monies from the payroll; a move that would certainly go a long way in letting the saleried people at the company know the pain is shared. It would also pave the way for ending duplication within the company, which would further save money.

Note what I am saying here: I want the divisions to go. That means all the trappings which go along with them but in no way am I advocating the non-use of the names. General Motors is free to retain and use these brands for their automobiles because it's already being done.

Divisions withing General Motors share technology and production lines pump out the same product. A Chevrolet Blazer is the same thing as an Oldsmobile Bravada, which is no different than a GM Jimmy. These are all trucks, marketed as SUVs with similar drive trains, wheel sizes and tires.

What therefore is the difference if one million Jimmys, as opposed to one million Bravadas re sold annually?

None, except the cost would be substantially lower than making 333,333 Jimmys, Bravadas and Blazers each.

Come on General Motors: Get the rid of these wasteful divisions and get on the track of saving yourself.

Youth is the wave of the future. Save your luxury division for the people with money...

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