I was keeping a close eye on U.S. car like makers like GM for 10 years, while I was Editor-in-Chief of PDMA’s Visions magazine from 2001 to 2011. I was constantly looking for an opportunity to publish articles about their “innovativeness.” That never happened. On the other hand, there were plenty of interesting articles to publish about Hyundai’s research and new models, as well as about the Chinese car company Geely (now owner of Volvo), a company that was working hard to become competitive—and succeeded.
Here are my thoughts about the underlying causes of GM’s lack of innovation:
#2--Outrageously High Executive Salaries. Top executives did not want to rock the boat and have their own salaries examined.
#3--Union Contraints. High worker salaries contributed to making their products uncompetitive in the marketplace. GM constantly gave up on restructuring of worker salary packages.