Thursday, Dec. 04, 2008
GM
•Market cap: $2.9 billion
•Employees: 252,000
•The company lost
$38 billion in 2007
Rick Wagoner
GM's CEO is asking for loans and credit lines of $18 billion. He needs $4 billion this month and $4 billion next month to stay afloat.
How It Got Here: A long-term management failure, GM could not adapt its cars and production system to be consumer-focused and globally efficient.
How to Fix It: A new labor agreement will help, as will making its plants more flexible. But GM has to make cars people love so that its price per car — and profit — rises.
Best Hope for Future: Much is riding on the 40-m.p.g. Chevy Volt hybrid electric, but GM models like the Malibu have to produce too.