Automotive Industry: Detroit’s Cultural Change
Automotive Industry: Detroit's Cultural Change
image: mug25
Once upon a time it was known as the world's traditional automotive powerhouse, but unfortunately 'Detroit' is no longer a symbol of power within the global automotive industry. Detroit's automotive industry has been forced upon a cultural change as a pure form of transformation, which was radical and fundamental. This cultural change involved changing the basic values, norms, and beliefs, in order to significantly improve performance. A mission that appeared impossibly daunting with numerous obstacles: collapse of market shares, overwhelming structural costs, profuse bleeding of cash.
The unusual suspect character that led the effort had no automotive or governmental experience. Steven Rattner left his Wall Street position, and straight into the largest restructuring attempt in American history. The scale and speed of the rescue raised many more questions, especially within the automotive circle. Rattner, who led the task force, believed passionately that the decision to intervene prevented a colossal economic collapse. Part of the suspicion was caused by the appointment of a 'non-car czar' to come to the rescue of a passionate industry.
GM finally confirms Opel and Vauxhall sale to Magna
Magna acquires Opel
GM has agreed to sell a 55% share of Opel and Vauxhall to Magna and its finance partner Sberbank. Magna and Sberbank will receive each 27.5% of the shares in Opel, while General Motors will keep 35% and the remaining 10% will go to employees.
Magna will keep its future roles as car maker and car parts supplier strictly separated to protect its customers. Upon the successful completion of the acquisition, Magna will put in place appropriate firewalls to ensure a complete separation between its current component business and Opel so that the confidential and proprietary information of its customers is fully protected.
GM Chasing Low-Cost-Car strategy
GM Low Cost Car
General Motors is once again considering making a low-cost-car as it attempts to improve product profit margins and meet a continued shift in consumer choices around the world. The plans involve a car which would retail at or around $4,000 (£2,400), putting almost in the same low-price bracket as India's Tata Motors $2,500 Nano model.
The genuinely low-cost-cars of today are those that were designed from the outset to come close to the standards of their manufacturers’ latest mainstream models but to be much cheaper to develop and make. The Nano is almost in a different category, as it's not just very cheap; to be so cheap it also has to be very clever. By starting with a clean sheet of paper Tata has created a new template for developing low-cost-cars that others will almost certainly find it difficult to follow.
