A Hole Below the Water Line

The Economist declares that GM has a hole below the water line today. The basic analysis is stuff you have heard before, bad products plus ineffective management plus high legacy costs equal massive losses. The Economist doesn't think GM will be able to pull it out.

In my mind the key to any turnaround at GM is creating great products, and then reshaping your brand portfolio in a way that makes sense to consumers. For example: if Pontiac is your "sporty" line then they shouldn't also have a mini van.

"Critics, such as Dan Gorrell of Strategic Visions, a Californian consulting firm, say GM concentrated more on finance and marketing than designing and making cars. Indeed, after the company’s annual meeting, Mr Wagoner conceded: “If we had a chance to rerun the last five years, we probably would have done a little more thinking about making sure that each product was distinctive and had a chance to be successful.”"

Timothy Burger
timothyb(at)timothyburger.com