Everyone has felt the effects of the recent economic recession. Some of the biggest companies in America closed, or came close. One of the industries to feel the impact of recession was the automobile industry. From bailouts to bankruptcy to completely revamped management teams and business models, the big car companies came crashing down to earth.
GM was no exception. Known for its sluggish decision making, this giant fell hard and required billions of dollars in government aid to remain in business. Now, reports, promises, and an entirely new structure of business offers a glimmer of hope to the company and the Americans who view this icon as a symbol of prosperity within our economic structure.
Although GM faces the largest slump in car sales according to predictions, it is promising to pay off government loans in less time than the mandated payment term of 2015. The company spent 40 days under the supervision of courts, which is less time than most expected. During that time, the changes made to the company should produce the speed, customer care, and streamlined decisions necessary to pull the company up by its bootstraps.
“We recognize that we’ve been given a rare second chance at GM, and we are very grateful for that. And we appreciate the fact that we now have the tools to get the job done,” CEO Fritz Henderson said in a news conference.
Some of the tools come in an eight member executive committee which will replace two senior leadership forums. This alone indicates the company’s seriousness in the matter of improvement. It is estimated that over the coming year 6,150 positions in the salaried employment departments will be cut. Of those destined to be eliminated, 450 positions are with executive jobs.
Based on this and the fact that the government will now own a majority of the company, it is looking as if GM can see the light at the end of the tunnel. If GM stays relevant, produces vehicles a more earth conscious society wants, increases the speed at which decisions are handled, and improves customer care, they may just pull off one of the biggest come backs in corporate history.
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