Through all this economic crap, bailouts, recession, rising prices, and falling job numbers, everyone seems to be complaining about budget cuts instead of working toward finding better ways to deal with them. I read on some business blog somewhere that if any business or organization told you they couldn't cut 10% of spending, they were either lying or not giving it a serious effort...this recent article about GM leads me to believe that.
Not only is GM keeping a subcompact car production in the US, but they are keeping it cheap enough that they can still make a profit. When normal car production lines can end up costing 60$ per employee per hour, using union workers, production of cheap cars just didn't make sense. BUT with the changes to the plant, production, and union wages the subcompact can finally be kept in the states providing jobs to Americans who desperately need them.
How they got unions to agree to drastically reduced wages, I'm not sure, but the production changes seem like something every business can look to as a model for getting back on their feet. Simple changes that cost money up front, but will save millions over time. The way to get a business back to making profits isn't pumping money into an expensive and broken system, but to change the system completely, reduce the costs without reducing the product quality, and be thrifty....being on a budget sucks, but it works. take a look and hopefully the rest of the factory based industry does also...
http://finance.yahoo.com/news/With-Chevrolet-Sonic-GM-and-nytimes-3082900830.html?x=0&.v=1
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