What downsizing meant for General Motors

Article Abstract:

General Motors Corp. decided in 1972 to begin a program intended to help reduce its dependency on foreign sources for oil, creating an ad hoc task force for this purpose that, in May 1973, told the company's management that an energy problem was on the horizon, that there was no government plan for this eventuality, and that the company's business would be impacted severely by the cost of oil. Still, GM was hurt severely by the oil embargo in October 1973, being forced to shut down 16 of its 24 assembly plant for one week the following December and reduce its production by one-fifth in the first quarter of 1974. The effect of the oil crisis on GM's planning and corporate strategy is described, and its approach to small-car design is discussed.

Analysis, Environmental aspects, Business planning, Energy conservation, Energy management, Energy management systems

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Harnessing 'worker power' at a U.S. Cadillac plant

Article Abstract:

John J. Nora, a former assembly line worker and now management pioneer at Cadillac's Livonia engine plant in Michigan, started implementing his revolutionary program on transformation of the workplace in 1979, and, by 1984, the results have been phenomenal: costs and absenteeism were reduced by 50 percent, productivity increased by over 100 percent, and warranty claims were reduced to almost none. In an interview with contributing editor Roy Hill, Nora states that the motive for adopting the program was not humanitarian, but the intense competition from Japan. Since the jobs at the engine plant could not be enriched, Nora concentrated on improving the workplace by forming teams and allowing them to make decisions and solve problems.

Methods, United States, Management, Human resource management, Employee motivation, General Motors Corp. Cadillac Motor Car Div., interview, Nora, John J.

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Crash course

Article Abstract:

The single European market of 1992 offers both opportunities and challenges for automobile makers. The expansion of Japanese firms into Europe is posing a great challenge to the European automobile industry. The already declining industry, with car sales in western Europe falling by 1.6% to 13.2 million in 1990, has to contend with Japanese carmakers' manufacturing productivity, effectiveness of new model development, and speed and variety of new model offerings. To protect European car manufacturers, the EC has sought an agreement with Japan to limit the sale of Japanese cars in Europe until the end of 1999.

Europe, Foreign investments, Economic aspects, Japan, European Union, Foreign cars, Automobiles, Foreign

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