General Motors ' Demise Of Automobile Manufacturing

1767 WordsMay 17, 20168 Pages
General Motors, a once supposable untouchable force, was immediately a leader in the field of automobile manufacturing upon its establishment in 1908. Its focus on motorised transportation saw its rapid success and accession through the acquisition of many companies with the mission statement of “a car for every purse and purpose”, making it a super power within the motorised industry. However, due to a number of internal and external problems within the business, General Motors began to quickly demise. Japanese automotive manufacturer, Toyota, established as an independent company in 1937, directly attributed to the demise of General Motors. It was not due to a direct sabotage, rather, Toyota were able to perform and were highly…show more content…
General Motors’ inability to analyse and diagnose complex situations showed that they were lacking some of the characteristics needed in order to be effective and efficient managers. This crucial as managers to be able to understand the organisation’s environment, analysing and reacting to issues within and outside of the business. In the past, General Motors had been a a forerunner in innovation with designs such as the first tailfins in 1948, sharped edged vehicles in 1959 and 1975 being the first manufacture tom implement emission controls. However, as The New York Times correctly identified in 2009, that the 1980s began to see General Motors slip. Consumers had begun to shift to small, more efficient cars as demand for lager cars decreased. This can be pinpointed on a number of reasons. Statistics show that the amount of people per household had dropped from 3.37 people per household in 1950 to 2.69. With less people on average per household, it is evident that families no longer required bigger cars. The US Petroleum Crisis of 1979 saw fuel prices increase and therefore so a demand in more efficient vehicles. “American consumers were told that the cause of the crisis was a decline in Iranian oil production from 5.8 million barrels a day in July 1978 to 445,000 barrels a day in January 1979.” In foreign markets, General Motors’ tradition large size and fuel consuming vehicles were never suited, most notably in Asian
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