The New GM And The New Chrysler Will Not Survive

By Ross Reck

Chrysler and GM will emerge from bankruptcy with completely new looks. The logic is that the new Chrysler and the new GM will be in a much better position to compete with companies like Toyota. As GM Vice Chairman Bob Lutz put it, "We will be smaller, leaner and we're going to be a powerhouse." Unfortunately, that doesn't have a chance of happening because Chrysler and GM have not dealt with the one issue that got them into this position in the first place - their management style, the way they treat their employees who do the work that the company gets paid for. Both Chrysler and GM have a long history of top-down management that uses fear as a motivator - the people at the top are treated like royalty and the people at the bottom are treated like third class citizens; it's part of the DNA of these companies and Ford's too, for that matter. Until these companies address this fundamental issue, they are doomed to eventually be run out of business. [more...]