Toyota has attempted to dominate the global automobile market, and has done so successfully, but does not compare favorably with GM in its productivity and profitability measures. In contrast, GM is taking a more cautious approach than it did prior to its bankruptcy and has not been willing to win market share at the risk of its profits (Higgins, 2012)
Like other companies who experienced the downturn, Toyota was impacted by the overall drop in the car industry. Moreover, trying to match up supply and demand without putting assets into unsold products was one of the challenges that the company faced (Johnson, 2009)
Such a course of action would undoubtedly increase the pressure for the American owner, which would not manage to reduce the threat of the crisis. Additionally, they would be forced to invest their own resources to revive the company and it would as such be uncertain if the company would be profitable by 2010, as estimated by Magna's takeover (Stoll, Fuhrmas and Walker, 2009)
An excessively insular corporate culture characterized by a chiasmic divide between unionized workers and managers gave GM a tone-deaf ear to what was going on in the industry. "With so many management levels and a top-down, seniority-based management style, it was tough to make timely, effective decisions" (Chao 2009)
GM gained a solid partner with Shanghai Automotive Industries Corp. (SAIC)" (Krebs 2009)
S. government to survive" and its sales in China were up "29% as an expanding middle class gained wealth, making it the world's largest car market" (Krisher & Kageyama 2011)
It has also closed underperforming plants and discontinued brands which sell poorly or have overlap with its existing products. During the government restructuring, "GM proposed a painful downsizing that would eliminate 21,000 workers, 2,600 dealers, $44 billion in debt and four brands" (Puzzanghera & Bensinger 2009)
General Motors is not exceptional as it is evident from the objectives it wishes to attain, that one of the objectives is about reducing the recurrent expenditures to minimum possible value. This proposed performance evaluation system will help identify the area where the company is losing its inputs; by establishing the employee performance levels (Maurer, 2002)
Lastly, the fourth and final objective the company has out-rolled is to work with the city officials to ensure they gain a better illumination of the main roads. Target job for which the evaluation is intended The performance evaluation focuses on the third objective which focuses on the composing of new designs; that will diversify the market as well as ensure customer satisfaction in the market (Flynn, 2010)
The last information that will be measured is that on the customer reports. All these products and objectives of the company can only bring the desired returns if the customer is happy with the products that they get (Dickson, 2011)
"It created a two-tier entrance system that paid old GM employees $60 an hour with benefits. Meanwhile, new entrants made $30 an hour" (Benedicto 2011)
GM has done little to change the bulk of its output. GM's car sales have fallen 6% which are low even when "compared with last year's anemic numbers, while light trucks (which include pickup trucks, SUV's, minivans and crossovers) are up by more than 16%" (Niedermeyer 2010:1)
GM has done little to change the bulk of its output. GM's car sales have fallen 6% which are low even when "compared with last year's anemic numbers, while light trucks (which include pickup trucks, SUV's, minivans and crossovers) are up by more than 16%" (Niedermeyer 2010:1)
The company lost $1.1 billion during the first three months of that year alone (otherwise a strong one for world automakers) "as poor sales and rampant health care costs hammered the world's biggest automaker" (Schneider 2005)
However, the final verdict upon its long-term prognosis remains uncertain. In February 2011, GM car sales were 49% higher, but critics contend that is due to unsustainable, hard-sell deals rather than real quality improvements (Sweeter deals, newer models, 2011, Associated Press)
Meanwhile, new entrants made $30 an hour" (Benedicto 2011). Regarding the draining health care benefit costs, "The company, along with Ford and Chrysler, has also reduced its health care obligation by paying into a trust to cover the medical bills of its retired hourly workers" (Vlasic & Bunkley 2011: 1)
S. Congress last year, which strives to ensure the company's long-term sustainability and its adaptability to the emergent market conditions (Fowler, 2009)
It had access to about $21 billion cash and $5 billion in available credit at the end of June but an analyst Friday said the automaker will probably need $10.3 billion in fresh cash through next year to maintain a minimum liquidity of $14 billion (Snell & Tierney 2008) Cerberus is likely to play an increasingly critical role in GM's future as merger talks are continuing between General Motors and Chrysler
GM is facing a serious liquidity crisis today. "The credit rating agency Standard & Poor's said Monday that it was keeping GM on a negative watch because of concerns about its declining cash reserves" (Vlasic 2008)
Consumer wariness about making new purchases combined with tightened credit has been a disaster for all major car companies. 70% of all banks this year have tightened lending standards regarding automotive loans (Welch 2008)