That old adage came to mind this morning as I learnt that GM is planning to shut down six plants and eliminate 30,000 jobs in the next three years. That is going to be the tip of the iceberg because untold number of jobs in the supporting supply chain will also be eliminated.The hardship,the devastation of communities will be similar to the one the heartland went through in the steel industry’s downsizing.
Unless GM takes the right lessons from this and structures its business in the new world of international competition, it is going to become a dinosaur.Specifically, its business model of spewing out the same car with different hood ornaments, grilles and new name plates are passe’.The current GM management, made up of uninspiring empty suits with the Dick Cheney mentality, need to be replaced with younger imaginative people who can infuse new blood into this dying giant.
Until that happens, all else is rearranging the chairs on the Titanic.