| BUSINESSWEEK ONLINE : FEBRUARY 1, 1999 ISSUE | ||||||||
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| COVER STORY
Wagoner Is Driving GM Forward... -- Restored domestic auto profits from a $982 million loss in 1993 to a $1.6 billion gain in '98 and an estimated $3 billion in '99. -- Whittled seven vehicle groups down to one car unit and one truck unit. -- Trimmed its product portfolio from 89 models in 1994 to 75 by dropping such slow sellers as the Chevy Caprice, Buick Roadmaster, Cadillac Fleetwood, and Buick Skylark. Merged GMC division with Pontiac. -- Streamlined product development by appointing one manager to head each vehicle program, replacing a mishmash of chief engineers, manufacturing bosses, and marketing managers. -- Cut manufacturing time by 10%, to an average of 30 hours per vehicle, and reduced the U.S. hourly workforce 14%, to 229,000 employees--all since '94. Closed two plants, with two more to shut down in '99. ...But He Still Faces Major Challenges -- Needs to reach a new pact with the UAW while spinning off its unionized Delphi parts unit and replacing factories with new ones requiring fewer workers. -- Must develop breakthrough car and truck models to halt GM's 20-year slide in U.S. market share. Just 29.2% last year, it was 49% in '67. -- Needs to increase GM's sales of trucks, minivans, and SUVs from 47% of total vehicles sales to improve the company's lagging profits per vehicle. -- Must improve marketing efforts to lure younger consumers and more aggressively kill off dated, poorly performing models. DATA: GENERAL MOTORS CORP., HARBOUR & ASSOCIATES, BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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