General Motors, in Today's News 03.03.10

General Motors. The Obama-ites have the notion that GM's lack of sales and profits results from the buddy-system of management at the old GM. The Obama-ites think that all the problems can be solved with a new management and a 'you're accountable' management system.

And so, the administration through its friends, brought GM into bankruptcy, reorganized the whole thing under total government control, and brought in a new board of directors and chief executive officer. The Obama-ites just knew that these changes would soon bring profits as the new management system took effect.

The Obama-ites, however, overlooked one small factor: the GM vehicles, for the most part, stink; and the public has so little confidence in them that they are unwilling to shell out five-figures to own one.

And so, we get to witness the continuing corporate comedy at GM. Every time something doesn't go quite right, the new GM managers blame the old management system, and then make all kinds of changes in the corporate ranks.

The latest episode has GM announcing today an overhaul of its top managers because Ford outsold GM for the first time in decades. (This is the second executive shuffle in three months.) [!!!]

So it goes. Expect another executive shuffle when the next bad news occurs as the Obama-ites pursue the folly of their management solution.

GM will only revive when it is recognized that very few in the public want the GM products. This was the problem of the old GM and of the new GM. If GM wants to succeed they will need to design and produce a vehicle that inspires the public, regardless of management machinations.