auto 2_Notes - It comes down to restructuring the business...

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It comes down to restructuring the business model for them to be competitive. UAW prevents them from having a competitive business model. Their current contract isn’t up until 2011 They have focused their sales on large gas guzzling vehicles. Report stated that they would have to sale 10 small cars to make up for the profit of one large vehical Look at report “Must get the organization to behave differently and fast” CEO of ibm. He feels they were too caught up in the culture of the past… put in quote from henry ford. People were stuck in that thought of mind and didn’t look at the competition, even when it was obvious it was coming. (they don’t make the cars people want to buy, labor contracts that don’t allow them to compete, and their distribution system is wack) -Gerstner Second visit to Senate talked about GM and Crysler merger. They think crysler is the weakest of the three and urge a merger. Also pressuring the UAW to make concessions in terms to labor costs. “Jobs
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This note was uploaded on 02/20/2009 for the course AEM 4140 taught by Professor Schulze,w. during the Fall '08 term at Cornell University (Engineering School).

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auto 2_Notes - It comes down to restructuring the business...

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