Tuesday, Jun. 02, 2009
Fear and Loathing in the Boardroom
1992: GM's board revolts and orders a reorganization of the company's top management. The reorg is cheered on Wall Street but ultimately robs the company of important momentum that had developed with the initial success of Saturn and the pioneering EV1, its experimental electric car. The new management team is increasingly focused on overseas growth; American brands like Chevrolet languish and innovation inside the company is stifled. GM loses crucial momentum in product development and design and shelves investment in fuel-saving technology. GM's reputation for shoddy quality grows following the boardroom shake-up, and relations with the UAW degenerate into open warfare.