New Management, New Problems: The Current Status of GM

The beginning of this year was a time of celebration for GM.  For the first time since the government bailout GM was independent.  The new CEO, Mary Barra, took charge of the company and promised to keep the company on a straight path in 2014.  Barra is committed to reinventing the GM way.  She wants to eliminate the bureaucracy that plagued the old GM management team, and focus on shifting the core values of GM to service oriented and personal excellence. Unfortunately, she was unable to keep her promise and reach her goals.  Currently, GM is facing three major problems that were outlined in article, “Year of hope, promise veers badly off course for GM.”  Seven million cars recalled across the globe, costly law suits related to wrongful deaths from the Chevy Cobalt, and accusations of criminal cover-up, are filling the executive team’s plate.  Instead of focusing on their line-up and consumer interest, the management team is forced to defend themselves in Washington and deal with wrongful death lawsuits.

It is saddening to see GM in this situation once again.  Not only are they dealing with these harsh repercussions from the recalls, but also overproduction of cars due to declining sales in the first quarter of 2014.  The chaotic mess that is surrounding GM is eerily similar to the situation they endured in the early 2000’s.  However, I think the new management team has a few advantages over the old GM.  The new executives are focused on improving safety of their products, which is evident due to the massive amount of recalls.  While this is negative in the short term goals, overall this will improve the quality of their products, which is a category in which the old GM lacked.  In addition, this new team does not have the “old GM mentality.”  They are aware of the magnitude of the situation they are in, and are willing to call in outside help and think outside the box.  The future of GM right now may look bleak, but with a determined team of executives and with enough time they will rise to the challenge and be prosperous.


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