SUPPLY CHAIN MANAGEMENT GENERAL MOTORS (GM) has said all the right things in recent months to offset the criticisms regarding an ignition switch issue that resulted in both deaths and recalls, and is now turning to advanced Six Sigma and an overhaul of its entire production chain to ensure similar incidents are avoided in the future. GM produces vehicles across 30 countries and is one of the world’s leading automakers, responsible for the likes of Chevrolet, Buick, Opel and Vauxhall, but has had its reputation severely dented following the recalling of more than two-and-a-half million cars, which have since been linked Tim Solso, Chairman of GM
to 13 deaths and 54 crashes. The Valukas Report which brought these figures to light has put intense heat on Chief Executive Officer (CEO), Mary Barra and Chairman, Tim Solso, who have since described the report as extremely ‘thorough’, ‘brutally tough’ and ‘deeply troubling’. Conclusion: Change is needed at GM. In the immediate term, 15 employees have been dismissed from the organisation, a further five severely disciplined and a compensation fund has been set up for the people affected by the ignition default. In the long term though, the emphasis has turned towards an
“The Board, like management, is committed to changing the company’s culture and processes to ensure that the problems described in the Valukas report never happen again” – Tim Solso, Chairman of GM
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July 2014