Running head: FORD VS GM Ford vs. GM Amy Hook Chamberlain College of Nursing (Keller Graduate School of Management) Managing Organizational Change Professor Marco Faggione November 4, 2012 Ford vs. GM In 2009 the American auto industry was about to change as all of America had known it in the past. The “big three” automakers Ford, General Motors, and Chrysler were in major financial crisis. The bankruptcy of the auto industry meant total devastation to the American economy.
The fall of the auto industry would be devastating to the American economy for many reasons including over a million unemployed auto workers, not including all of the companies that are contracted through the auto industry, and millions of dollars in tax revenue. The federal government decided to bail out the auto industry through the Trouble Asset Relief Program (TARP). General Motors and Chrysler were among the companies that received help from the TARP.
Ford chose to decline the money and decided to make changes within the company to avoid bankruptcy. General Motors made several changes due to the financial crisis including cutting employees and plants throughout their workforce, reducing debt, and revising their retirement programs. Ford had recruited a new CEO to reorganize the company and pull it out of its own financial crisis. The new CEO made several changes including selling off luxury brands and listening to the public’s need for smaller cars.
Both companies survived the crisis with many changes, the changes will be broken down and evaluated for final project. References Canis, B. , and B. Webel. “The Role of TARP Assistance in the Restructuring of General Motors. ” Congressional Research Service: CRS Report for Congress (2012). Massenburg, C. O. , and S. B. Massenburg. “The Big 2/3 Auto Bailout and Its Aftermath: Measuring the Effects on the Past, Present, and Future of the Big Three. ” DriToday July 31 2012.