General Motors Essay Example | Topics and Well Written Essays - 750 words

oecumenic Motors - Essay ExampleHow does the order plan to rally. Are they being realistic in their efforts to meet outside(prenominal) competition Are they actually expression at the areas that need further attention, or are they looking for short-term incentives as a means of increasing their market share Exactly what are the important issues that must be addressed before GM can begin to recoup its lossesIn 2005, GM North America reported a loss of $1.6 billion in the third quarter, compared with a loss of $88 million in 2004. In the last quarter of 2005, GM had to revise its losses by a further $2 billion (Krolicki, 2006), the reason said to be charges related to grinder job losses and Delphi Corporations bankruptcy. Unfortunately, the keep companionship can be compared at present to a house of cards, weak to topple. Toyota, on the other hand is growing by leaps and bounds and is expected to take over the add together unity spot in auto sales within the next few years. The chart under is based on an NPR study by Diane Geng (2005) and indicates some of the more telling statistics regarding competition between these companiesUnfortunately, the company does not seem to be focused on global issues, and its efforts have been limited to quick fixes. The modern agreement with United Auto Workers union to cut health care costs, perhaps by $3 billion a year, prolongs an neighboring(a) boost. However, this savings is expected to be achieved by higher co-pay for doctors visits and prescription drugs. The company also announced its intention to eliminate 25,000 jobs. Where is the incentive for employees to increase output How much emphasis does the company place on employee satisfaction The most recent effort is a promotional incentive for anyone who buys a new SUV in California or Florida. With gas prices at present well over $3 a gallon, the offer for a redeemable card with gas at $1.99 a gallon for one year if the customer signs up for On-Star, free f or a year and then $16.95 a month (Durbin, 2006) is an immediate benefit. But will this incentive improve the way customers see the GM brand The major selling push has been for trucks, especially popular over the past few years, and SUVs. The companys promotional incentive will suffice sell the SUVs that are no longer as popular as they were, but then what incoming Issues to be Addressed at General MotorsBecause of the present interest in fuel consumption, commentary on the current economy as it relates to automobile design and manufacture is being updated every day. Some of the online publications that offer a running commentary are Business Day, MarketWatch, YEALD and NPR, as well as books and journal articles as noted in references. Certain areas must be explored if GM wants to stay ahead of the market. Because of the serious issues cladding the company, a study directed