Friday, April 11, 2014


So GM has put two engineers on paid leave, and then named them publicly, because that's what a classy joint does to people who have little to no responsibility for the screwed up nature of their organization.

A little back story first though.  I work for a company that has at times been a third tier (in terms of position, not quality) supplier to the automotive industry.  It's something we generally don't do because the buyer (or I should say, the buying committee) will want everything under the sun; generally yearly price cuts and the ability to shove warranty claims down the chain in a 'guilty until proven innocent' agreement.  Some people were surprised by the word that GM wanted Delphi to eat warranty claims even if the issue was because of GM's design.  However, this is par for the course for the big three especially. 

More to the point however, the rot of government ownership is showing through in GM's production.  Sure they aren't technically owned by the government anymore, but I'm sure there's a feeling that another bailout will be in the offing for when they screw up again.  What would one expect of a government owned car company?  Perhaps dangerous design defects?  That are then covered up?  That are then scapegoated out to a few employees that drew the short straws?  And then without fixing any of the issues that led to the problems to begin with?  It's very difficult to overstate how huge and incompetent the bureaucracies are at these organizations even when they're not involved with the government.

Put a fork in that beast.  A real bankruptcy with a real clearing of the air may (may) have set GM on the road to future success, but there's no where to go but down for a government manufacturing business.  It won't be long before GM cars are (completely) manufactured elsewhere and rebadged under their old brands like the French and British government car makers of old.

No comments: