Management and Labor

The American automobile industry is undergoing a transition of immense proportions. This process of change has not been easy, and it is certainly not over. Few organizations in American industry have had the long-term success that General Motors enjoyed. Until much of the 1970s, GM was the industry's low-cost producer because of its economies of scale. With nearly 60 percent of the car market, its most challenging problems seemed to revolve around concerns that the Justice Department would try and break up GM because of its dominant position and market share.

But, in the 1970s, two energy crises, important new government regulations, and significant sales gains by the Japanese were followed by real and far more substantive challenges in the 1980s. During the 1980s, GM tried to capitalize on the weakness of its U.S. competitors, Ford and Chrysler, with unprecedented investments in new products, facilities and advanced technology. However, the path that was charted for GM almost brought the corporation t

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ould just have a few job titles, compared with dozens at a typical GM plant. The multiple job titles had been a tactic by the union for years past to build employment levels. Saturn vowed that all decisions on the plant floor would be made in consensus between UAW members and GM managers. The UAW's executive board approved the contract at a special meeting called in Chicago in the spring of 1985. Once the contract was signed and the new site for the plant was selected--Spring Hill, Tennessee--Smith went on a public relations mission. He hyped Saturn, still five years away from the market, as the car to end all cars. Finally, with Richard LeFauve at the helm, attention began to turn to the car itself. The car was now slated to be introduced in 1989 or 1990, the year Smith would retire. GM management exercized intense pressure for Saturn to be a styling sensation, as Ford was about to introduce the Taurus. However, the Saturn team argued that futuristic looks and flashy features would defeat their purpose. Instead, they would replicate their Japanese counterparts, where cars usually came in just two or three versions--DX, LX or EX. Saturns were thus introduced in just three styles--a no-frills sedan, a slightly upscale fo
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Approximate Word count = 7574
Approximate Pages = 30 (250 words per page)