Karl Ludvigsen

Wednesday

Karl Ludvigsen

Not so sclerotic: the truth about General Motors

From our UK edition

Karl Ludvigsen is irritated by ill-informed criticism of the troubled American auto giant — which was once a model of quick, responsive and decentralised decision-making Outraged is too mild a word for the way I felt after reading a piece in the 12 November edition of the New York Times about General Motors. Focusing on the faults of this once-great company, its author said the following: For all its financial troubles and shortcomings as an automaker, no aspect of GM has confounded its critics as much as its hidebound, command-and-control corporate culture. When GM collapsed last year and turned to the US government for an emergency bailout, itcentury-old way of conducting business was laid bare, with all its faults in plain sight.

Wednesday

Karl Ludvigsen

Who’s really driving the rescue of Vauxhall?

From our UK edition

It’s an axiom of auto-makers — as it is of most producers of goods — that they are squeezed between suppliers and customers. Upstream suppliers have options to reduce costs and improve profits while their customers downstream, the retailers, can set prices to suit their markets. Although the producer likes to think of himself as king, in fact his thankless task is to squeeze such profit as he can from the narrow margin between supplier and customer. So why, you may well ask, does Magna International, a Canadian supplier of vehicle components, unheard of to the British and European public, want to relieve ailing General Motors of the challenge of running Vauxhall and Opel?