Restructuring / Turnaround Strategies Case Study

GM's Turnaround Strategies: Will they Ensure its Survival?

Abstract:
Continued losses at its core North American operations had called into question the very survival of General Motors (GM). The giant automobile manufacturer was rapidly losing ground in the North American market to its nimble competitors and its brands were losing their popularity. The company also had huge legacy costs. But the company's management, led by Chairman Rick Wagoner, was confident that their turnaround strategies would be successful in ensuring the survival of GM.

Pedagogical Objectives:

• To comprehend the reasons behind GM’s declining fortunes
• To discuss whether the turnaround strategies devised by Wagoner ensure the company’s survival.

Keywords : General Motors (GM); Turnaround strategies; Rick Wagoner; Legacy costs; Sports utility vehicle (SUV); Cash flow negative; Non-investment negative; United Automobile, Aerospace and Agricultural Implement Workers of America (UAW); Restructuring / Turnaround Strategies Case Study; Product differentiation; Brand image; Value pricing