he company is one problem analysts predict keeps the giant auto-maker from being more successful, “At its core, GM still has too many models (56), too many North American assembly plants (29) and too many workers (220,000) to support its U.S. market share, which decline from 35% in the early 1990s to 31.1% in 1997” (Stodghill 2). Many experts argues that GM’s many models compete with themselves. They are plagued by labor disputes (16 strikes in the last five years) and it is estimated they would have to eliminate 34,500 jobs and 2,300 dealerships in order to streamline for increased competition (Stodghill 3). GM also takes longer on average where worker hours are concerned, to make the same products as Chrysler or Ford, like fenders, doors and hoods which are stamped out by the competition with almost half the work hours required by GM.
For all the bad news, there is good news for GM stockholders, “GM has steered clear of the competition to remain the worlds #1 manufacturer of cars and trucks” (GM Corporation 1). Since CEO John Smith took over the company in 1992, the company’s finances are stronger, costs have been lowered, global expansion has been pursued and engineering efforts have become more focused. Growing vehicle sales and a strong market are responsible for some of this success, but the company is pursuing many strategies to help regain its competitive edge, from taking advantage of economies of scale to streamlining production, manufacturing and administration process with the help of technology. Sales have risen more than 6% in the past year and consumers appear to be excited over new products from GM, “Total GM vehicle sales for October were 411,156, an increase of more
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