GM: A Tale of Two Chairmen
The tenures of GM’s past two chairmen were marked by declining market share, record losses and extensive plant closings and layoffs.
GM under Roger B. Smith, chairman, 1981-1990:
* Modernized its aging manufacturing and technological base.
* Introduced the Saturn to compete with the Japanese.
* Set an industry record by earning $4.86 billion in 1988, but little was contributed by the ailing U.S. car operations.
* Lost 12% market share because of weak products.
* Relinquished its position as industry trendsetter in pricing and automotive styling.
* Acquired Ross Perot’s Electronic Data Systems Corp., Hughes Aircraft Co., Lotus and half of Saab.
* Announced plans to close 11 plants and eliminate 29,000 jobs.
GM under Robert C. Stempel, chairman, 1990-1992:
* Set an industry record by losing $4.45 billion in 1991.
* Announced plans to close 21 plants and eliminate 74,000 jobs by 1995.
* Lost money in eight of the last nine quarters.
* In a major restructuring in April, 1992, Stempel lost most of his authority, much of which was assumed by board member John G. Smale and President John F. Smith Jr.
* Stempel announced his resignation Oct. 26, 1992.
Earnings (loss) per quarter (in millions): GM enjoyed healthy earnings under Roger B. Smith during most of the 1980s, but the recession and other woes led to extensive losses under Robert C. Stempel.
