Wednesday, November 30, 2005

General Motors is not nimble enough for the 21st Century – Robert Samuelson reflects on the entrenched management at GM, where inertia rules the day. Here’s an interesting factoid: “In 1950 hourly wages in the auto industry were 24 percent higher than average manufacturing wages; by 1990 they were 34 percent higher (where they remain today). With 2.5 retirees -- receiving health and pension benefits -- for every active worker, GM's high costs would challenge even the most brilliant management.” And now there will be 30,000 fewer active workers at GM because management either wouldn't or couldn't adapt.

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