Gm’S Chief Is Optimistic About 2006

Laura Query

MKTG 334 - Promotional Strategy

The Wall Street Journal

GM’s Chief Is Optimistic About 2006

GM’s line of SUV’s and pickups could be in trouble but GM appears to not be worried about the situation. Statements in the article made by various big wigs of the company tried to give the notion that they believe they are not in trouble with issues such as the rising price of gasoline. This issue comes into play because many people will think to purchase other vehicles that do not consume as much fuel which would involves fuel efficient vehicles or possibly even hybrids.

Rick Wagoner, Chairman and Chief Executive, seems to think they will be alright because they will be able to cut cost in various ways. They believe that the cost of materials will go down in the next year. This is one cost they do not control but does help them out in the cost of making new vehicles. They also plan on reducing health-care costs. They don’t come right out and say it but I believe this to mean that they are going to pick a cheaper health-care plan for their employees so they don’t have to pay out as much. I have personally seen this happen in many businesses. This is not something that is illegal to do in a company but can be viewed as unethical. While this does cut down costs for the company, it also makes it to where the employees have to pay out more to get prescriptions and medical treatment because a cheaper plan involves having a smaller plan. Another issue that could be considered unethical is that they have been closing down company plants. This means that there are many people who are loosing their jobs because GM wants to continue creating a product that will possibly not be in high demand. I believe they are trying to keep a product going that