Automotive News GM 100 Supplement

General Motors Pivot Points 25 game-changers for GM The story of General Motors’ first 100 years is filled with talented people, amazing inventions, sweeping cultural changes and key decisions. Selecting 25 “Pivot Points” that were crucial in creating the GM of 2008 is an exercise that we hope will inspire reflection, argument and discussion. That’s part of the fun of history. Here are our editors’ 25 choices. Each, of course, rates a story in the following pages. Many people were forming (and usually losing) auto companies in the bustling early years of the 20th century. Most were mechanics who loved the grease and the gears. Salesman Billy Durant had a new approach: Buy as many auto companies and their suppliers as you could, and try to keep one step ahead of the bankers who had lent you the money. . . . . . . . . . . . . . . . . . . . . . . . 10 1 A supersalesman creates GM Most rivals had a product, or maybe a few, and tried to fill a particular niche. But Billy Durant’s plan was to assemble enough brands and vehicle types so all car buyers, no matter what they were looking for, could wind up in a GM vehicle. . . . . . . . . . . 22 2 A car for every buyer It was a B.C.-A.D. moment in motoring. No longer was driving only for those hearty enough to deal with a crank starter (and risk a broken arm or jaw in the process). The 1912 Cadillac, miraculously, was a machine that could be started from inside the car. . . . . . . . . . . . . 36 3 Cadillac’s self-starter With the founding of GMAC — the first captive finance company — GM solved the problem of bankers saying no to car loans because they considered the auto a frivolous luxury. Suddenly, with a little money down, it became easy to buy a car, and sales soared. . . . . . . . . . . . . . . . . . . . . . 50 4 GMAC makes ownership easy 5 6 Creating an r&d powerhouse This ad for the 1912 Cadillac was dramatic, and so was the innovation: With the self-starter, drivers no longer had to risk a broken arm to start their cars. From humble beginnings in an Ohio barn in 1909, GM created a world-class research organization. . . . . . . . . . . . . . 52 Durant is pushed out An acquisition binge put Billy Durant deep in debt by the time the nation’s economy slumped in 1920, and GM couldn’t generate enough cash to pay its debts. The bankers pounced, and Durant was out. Pierre DuPont took over, with the help of the up-and-coming Alfred Sloan. . . . . . . . 56 In 1927, Harley Earl came to GM and transformed styling from a secondstring activity into a vital part of the business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 10 Harley Earl creates a design empire The 1950s came to be known as the golden age of GM styling. At the grandiose Motorama shows from 1949 to 1961, GM designers got to strut their stuff. . . . . . . . . . . . . . . . . . . . . . 110 15 The Motorama years In 1992, led by John Smale, GM directors dumped CEO Bob Stempel and President Lloyd Reuss. . . . . . . . . . . 250 20 21 Revolt in the boardroom Billy Durant was a talented collector of businesses but a poor businessman. As GM grew, his frenetic, gut-instinct style threw GM into disarray. Alfred Sloan was his opposite: an organized chart-maker who never acted on emotion and loathed chaos. His 1920 organizational plan formed the structure for the new GM — and for the modern corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 7 Order from chaos: The Sloan era Reluctantly, after a bitter strike, GM was forced to recognize the UAW in 1937. Suddenly workers had rights, and management no longer could call all the shots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 11 GM accepts the union Unsafe at Any Speed, Ralph Nader’s scathing 1965 critique of the Chevrolet Corvair and the process that created it, fed the auto safety movement and helped usher in an era of government scrutiny on safety, emissions and fuel economy. . . . . . . . . . . 140 16 Ralph Nader and the age of scrutiny Lopez shakes up purchasing J. Ignacio Lopez saved GM big money by creating a new purchasing model. Then, on the verge of a big promotion, he bolted to VW — allegedly with stolen documents. . . . . . . . . . . . . . . . . . . . . . . . . 253 The thought of wrestling with a gearshift lever and clutch pedal kept many people out of the driver’s seat. But the automatic transmission in the 1940 Oldsmobile changed all that. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 12 What? No clutch? When fuel prices soared in the 1970s, GM moved quickly to make its cars smaller and lighter. The crash program had mixed results. “It took us awhile to get it,” one designer recalls. . . . . . . . . . . . . . . . . . 218 17 Downsizing in the 1970s A disastrous strike made it clear that GM and the UAW needed to change the way they did business. . . . . . . . . . . . . . . . . . . . . . . . 264 22 23 24 25 UAW, GM hit bottom The Delphi debacle GM built an overseas empire by acquiring established companies and allowing them a degree of independence. . . . . . . . . . . . . . . . . . . . . . . . 74 8 9 GM looks abroad At President Franklin Roosevelt’s request, GM President William S. Knudsen helped turn America’s industrial might into a war machine. GM’s contributions in the World War II effort were enormous. . . . . . . . . . . . . . . . . . . . . 100 13 GM goes to war In the 1980s, CEO Roger Smith made major acquisitions and reorganized GM. Critics say the company lost focus on its key mission: high-quality products. . . . . . . . 222 18 GM diversifies, reorganizes, falters When GM shoved its giant parts maker from the nest in 1999, it was supposed to be a win-win deal. They’re still cleaning up the mess. . . . . 266 Lutz to the rescue In 2001, Rick Wagoner decided product was the problem and Bob Lutz was the answer. . . . . . . . . . 272 Creating a strong dealer network From his days at Buick, Billy Durant was a dealer guy. Alfred Sloan also knew that a strong dealer corps was essential to automotive success. Their leadership helped make GM’s retail distribution a model for the industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 8 September 15, 2008 In the 1940s, GM began paying a small portion of employees’ health care costs. Over the decades, health care costs became a major part of the debate over GM’s ability to compete. . . . . . . . . . . . . . 108 14 Health care: A benefit, a crisis A California joint venture with Toyota in the early 1980s provided insight into the importance of consistency and communication in the assembly process. . . . . . . . . . . . . . . . . . . . . . . . . . 234 19 NUMMI: Learning from Toyota The CEO gets a vote of confidence In April 2006, Rick Wagoner came to the board with a crucial question: Am I the man you want to lead this company’s turnaround effort? He’s still there. . . . . . . . . . . . . . . . . . . . . . . . . . . 280 AUTOMOTIVE NEWS © GM Corp.

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