Only by eradicating existing problems can GM turn around

• Source: xinhua
• [09:43 June 09 2009]
• Comments

OPEN MINDSET AND GOVERNMENT SUPPORT

Asked whether a new GM will come into being as planned, Young said that businesses are different from human beings who will naturally become old and feeble when age grows, and a company can try to stay young if constant and correct reform initiatives are introduced. "In this aspect, corporate culture and art of leadership play a significant role," she stressed.

"Senior executives of GM must always be ready to absorb new ideas and concepts," she suggested. "If they continue to eye its internal world to the neglect of the vast outer world, they will surely tumble under the current circumstances of fierce market competition."

While government control is not desirable in a normal market, Young commended the "critical" role that the Obama administration played in the restructuring effort of GM.

"The Obama administration has removed many obstacles for GM's revival effort," she said. "The basic conditions are there, but the key lies in the new management team which should seize the time and make the best use of these hard-won conditions."

"We can not be sure whether a new GM will rise as planned, " she said. "Only time will tell. I hope it will happen with all my heart."

WORDS FOR CHINESE AUTO INDUSTRY

Speaking of the Chinese auto industry, Young said: "Although GM has met some problems, it does not mean the global auto industry is going downhill."

The global auto industry will continue growing, so will the auto market, she said. "China has become one of the most important car markets in the world, so Chinese auto companies including GM's joint ventures should seize this hard-won opportunity to develop itself."

GM's business in China has been extremely successful, she said. "It proves that GM has within its company the products, technology and market approaches to be successful. The success of the Shanghai GM joint ventures was because it could start with a blank sheet, and because senior executives of GM in China were open to new ideas and concepts, and implemented them quickly."

"This and other factors such as paying close attention to customer needs have made GM's joint ventures successful in China," she said.

China should avoid the mistakes GM made in the United States, she said. "It should know the importance of controlling costs, avoid changing brand names, avoid having too many car dealers, and focus on meeting customer needs in products and service."

From 1988 until Dec. 31, 1999, Young served as corporate vice president of General Motors Corp. and was involved in the development of GM's 1.5-billion-dollar joint venture in Shanghai.

She is governor and founding chairman of the Committee of 100, a national Chinese American leadership organization, and serves as chairman of the Committee of 100 Cultural Institute whose objective is to bridge the cultural gap between the United States and China through arts and education.

"China is critical to the success of GM," Young said. "It is a key market which ensures the success of a new GM."

China's auto industry is still in need of core technologies, but it could grasp more advanced technologies by cooperating closely with first-class automakers in the rest of the world, Young noted.

"I was born in China, and I have warm feelings for the land of my birth," she said. "I hope to see the Chinese auto industry become stronger and more effective as part of the world economy in the future."