The death of an American icon

An excellent article appeared in Fortune magazine about the recent crisis at GM. Actually it takes a longer view at the decline of GM since the 1960s.

It's a great piece to read. The article exposes the chronic desire of many GM executives throughout the decades to conform and maintain stability in their organization when really what they needed was exactly the opposite. Like the author says: "At GM, conformity was everything, and rebellion was frowned on".

Speaking about GM executives:

"In working for the largest company in the industry for so long, they became comfortable, insular, self-referential, and too wedded to the status quo - traits that persist even now, when GM is on the precipice. They prefer stability over conflict, continuity over disorder, and GM's way over anybody else's. They believe that hard work will overcome adversity, and that tomorrow will be better than today - despite four decades of evidence to the contrary."

About the company:

In many ways the story of General Motors since the 1960s is a tale of accelerating irrelevance. Customer preferences changed, competition tightened, technology made big leaps, and GM was always driving a lap behind. It became a red-state company, its Buicks and Pontiacs seldom seen in California or New York City. GM has been losing market share in the U.S. since the 1960s, destroying capital for years, and returning no share price appreciation to investors.

Interesting given the current economic conditions. Is this the best GM can come up with?

The story of GM is no big secret, but the article is still a great read. Click here to read more.