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November 14, 2009

Where is the fundamental problem?

I see the fundamental problem as being the Union Auto Workers conversations / negotiations so it seems to me like large amounts of energy at these companies HR and overall management has been spent in negotiating labor contracts vs. finding the appropriate design workforce, and appropriate people to be working at these large auto-manufacturers that could get them out of the slump and to be able to catch up with their direct competition. Toyota and other foreign companies (as we all know and study their cases at SMG) have re-invented their supply chain and production systems much longer then 5-6 years ago. Where where US auto companies then and why didn't they effectively enhance their production systems and found better and efficient ways to produce American cars? To me all of that stems from lack of proper HR recruiting perhaps and capable employees within the design teams and a more competitive management. But then again, you can't blame them full till, since they were negotating Auto - Union Labor contracts for majority of their time. Would like to hear other SMG colleague opinions.

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