It appears that GM has rather lost its way. 55,000 workers are striking its us plants over higher wages and benefits, which now average $63 per hour.
It’s been awhile since I was at Ford, but back in the day, benefits were about 25% of the total pay package. If that’s true, then the AVERAGE worker is making about $40 per hour, which equates to something like $80,000 per year to build cars.
That’s about 25% more than the workers get in non union plants dotting the South that are building Hondas, Mercedes and BMWs.
What this means is that GM has got to move upmarket in the cars and trucks that it builds in the US. Trucks aren’t the problem, other than the GM truck products routinely get poorer reviews than their counterparts at Ford and FiatChrysler.
Ford figured out the wage/product conundrum a few years ago, and builds nothhing but Mustangs. SUVs and trucks in North America. And hasn’t roused The Donald’s ire lately. But they need to make more money, averaging, apparently only 2% of sales in gross profits. The problem is probably poor capacity utilization…I think their recent marketing has been pretty good.
Fiat Chrysler builds Dodge rockets and trucks in their assembly plans, which they can do at only $50 per hour pay and benefits.
So, Ms. Barra, it’s time to shake up your management.: fire all your product managers who aren’t in the right SWOT (strengths, weaknesses, opportunities and threats) buckets. Do some serious product evals against Ford and Dodge/Chrysler.
Get YOUR crew going.