GM to Ax 30,000 Jobs, Close 12 Facilities

Posted: December 2, 2005 in lean
Tags: ,

(, Nov. 22, 2005)

GM has been crippled by high labor, pension, health care and materials costs, as well as by sagging demand for sport utility vehicles, its longtime cash cow.

I find it quite amazing that business reporters and business professors just don’t get it. Toyota’s current and strategic advantage is not based on its labor contracts, health care costs, gasoline prices, or… Toyota’s ability to “make cars more cheaply and offer vehicles with designs and features that increasingly appeal to American buyers” is because of their commitment to the principles of the Toyota Production System.

GM will not rise from their current situation by laying off workers and reducing production capacity. I fear that we will see another great American manufacturing company decline to the point of extinction as we have witnessed the extinction of Douglas Aircraft Company and its commercial airliners. We as a country need to stop being so superficial in our business thinking and approaches else the United States will become inconsequential in the global economy.


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