Saturn Case Study Analysis

1238 WordsJan 21, 20095 Pages
Saturn is a company that prides itself on producing economical, quality automobiles, offering innovation and practicality, which was supposed to give it a high rating of customer satisfaction in its industry. It borrowed many of GM’s strategies and applied them to create a Saturn’s business model. However, things haven 't gone as planned. In fact, Saturn has been something of a fiasco. "I view Saturn as a failure," says George Magliano, director of automotive industry research for Global Insight. "It hasn 't done what they expected it to do. Saturn has had two or three incarnations, and none of them has worked.” I read two articles on Saturn. Most of the recent articles about the state of the company are 4 to 5 years old. This…show more content…
As we look at the fall of the US auto market you can see how they ran into problems. In US Congressional hearings on December 2nd, 2008, General Motors announced its intentions to only focus on four core brands (Chevrolet, GMC, Buick, Cadillac), with the sale, consolidation, or closure of Saturn and the remaining brands. This makes my analysis of the future of Saturn very simple. They will no longer be in existence and therefore speculation of the company is easy, they won’t be a part of GM and probably will lose the Saturn brand and that is not a bad thing. The big three’s survival will be dependent on management and how they plan to restructure their respective companies. They need to transform the past and move into the present. This will enable them to better compete with companies like Toyota and Honda. One of the first places for GM to start is by filing for bankruptcy. This will enable them to restructure the current contracts they have with the unions that are not favorable. When you compare other car companies like Toyota to GM you will find they do not have unions at their factories yet there is no problem with job security, benefits or pay. Toyota offers the employee’s profit sharing, and due to the efficiencies there the employee’s actually make more money than the employee’s at GM. The second suggestion for GM would be to get rid of the current management team and bring

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