Even after emerging from bankruptcy, the new GM still faces some of the same troubles that haunted the old one, which piled up more than $80 billion in losses during the past four years.
Five keys to GM's success after bankruptcyCourtesy MSNBC.com: Business Fri, 07/10/2009 - 16:36
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GM auto makers are inflexible
All GM has to do is bring out the most quality built and reliable auto plus superior customer service and they will survive successfully or else they would fail on the way to 2nd bankruptcy. U.S. auto makers are inflexible. This is a huge problem. Detroit can run only one or two models down most production lines, compared to seven or eight at Toyota and Honda. This prevents them from making the small volume niche products they need to survive in the modern world. Dedicated assembly lines and costly changeovers, two of Detroit's legacies from the mass production era, raise the break-even volume of each vehicle. Because the big three require long production runs, there's a lot more pressure for each new model to be a big hit. Detroit might have survived a lot more Pontiac Azteks if their break-even was 10,000 rather than 100,000 units sold.
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