GM Files for bankruptcy: What advice do you have for the company?

Posted by Glassdoor Team • June 1st, 2009 • Comments
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It finally happened —  General Motors officially filed for chapter 11 bankruptcy. Although the numbers varied in the media in terms of the actual on employees effected, reports note that up to 14 plants and 17 factories will be closed, including the lay-off of nearly 8,000 salaried employees between now and the end of the year. All of these efforts will be made in attempt to bring the company back to life in the midst today’s filing. The New York Times includes a great primer on the bankruptcy announcement for those interested in learning more on the details.

Back in April we reported on the cuts GM had made to potentially avoid today’s announcement, along with some advice employees had for CEO Fritz Henderson. Since publishing that blog post, we’ve seen a number of employees offer up additional advice given the current environment. As the last round of cuts didn’t seem to work, perhaps if Henderson and other senior management pay more attention this time around it will help GM get back on its feet:

Look towards the future, should have a break-even point that would be recession proof. Should always have a bottom line and conserve our capital.- Anonymous, Warren, MI

What happened to common sense?- Anonymous, Detroit, MI

If you’re going to downsize employees and want to improve morale at the same time, get rid of the non-value-added people regardless of their years of service.- Supervisor, Warren, MI

It is time to push back on the U.S. government and ask for a coherent energy policy, health care policy, global trade policy, manufacturing policy, and tighter regulation of the banking and oil industries. Maintain the perfect GM leadership track record of integrity and ethical practices. Publicly promote GM’s plant safety record, quality improvements, productivity gains, diversity policies and corporate responsibility.- Director of Program/Planning Management, Detroit, MI

 Do you, or have you worked for GM in the past? What advice would you give the company to help them emerge from Chapter 11 and go on to once again be a successful company?

The Glassdoor Team is a small yet seasoned group of individuals looking to provide greater transparency into one of the most important aspects of our lives – our jobs. Contributions to the blog are designed to present a unique perspective on current events, offer commentary on the inside workings on specific jobs at a multitude of companies, and provide details on the latest happenings from within Glassdoor.

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  • Jim
    There are a number of facets to this issue.

    First, the UAW is a labor cartel. Unless the supply and cost of labor can be controlled by the manufacturer and not labor, the industry will succumb to bankruptcy as we've seen with GM and Chrysler.

    Second, GM was building cars we were willing to buy - they were supplying the gas-guzzlers people wanted, even if they couldn't afford them. It was only until the rising cost of fuel made owning them prohibitive that people turned away leaving an industry that needs long lead times for product development with nothing to sell.

    Third, just as money flowed to people who otherwise could not buy a house (thus creating the housing bubble that burst), so too has money flowed to people who should not have been buying cars.

    Fourth, government policy is always addressing the wrong party. For example, raising CAFE standards does not address people's behavior. It is like penalizing the fast food industry for people overeating and becoming obese.

    In the face of this, its difficult to advise GM what to do. The knee jerk reaction is to tell then to build small, fuel efficient cars. But Americans have shown they will not buy them unless fuel prices are high. So the government needs to address fuel prices that incent people to buy fuel efficient cars, if that is our goal. They need to do away with labor cartels that control the supply and cost of labor (but that is not likely). Car manufacturers are precluded from collusion in setting prices for their products but unions are free to set prices for their labor. Unless that is addressed, the non-union manufactured Hondas and Toyotas being built elsewhere at less cost will put any re-emerging Detroit auto manufacturer out of business in short order.
  • i can even tell 100 advice but my best advice is do not repeat
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