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Apple CarPlay is a trademark of Apple Inc. Quality was better, but still not exemplary, although good enough to survive through three generations to the model year. Roger B. Smith served as CEO throughout the s. GM profits struggled from to following the late s and early s recession.
In , the UAW negotiated some concessions with the company in order to bridge the recession. GM profits rebounded during the s. During the s, GM had downsized its product line and invested heavily in automated manufacturing.
It also created the Saturn brand to produce small cars. GM's customers still wanted larger vehicles and began to purchase greater numbers of SUVs. Roger Smith's reorganization of the company had been criticized for its consolidation of company divisions and its effect on the uniqueness of GM's brands and models.
His attempts to streamline costs were not always popular with GM's customer base. Each of these agreements provided opportunities for the respective companies to experience different approaches. The s also marked the dismantling of General Motors' medium and heavy trucks, with imported Isuzu trucks taking over at the lighter end and with the heavy-duty business being gradually sold off to Volvo through a joint venture. The decade of the s began with an economic recession , taking its inevitable toll on the automotive industry, and throwing GM into some of its worst losses.
As a result, "Jack" Smith not related to Roger became burdened with the task of overseeing a radical restructuring of General Motors. Sharing Roger's understanding of the need for serious change, Jack undertook many major revisions. Reorganizing the management structure to dismantle the legacy of Alfred P.
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Sloan , instituting deep cost-cutting and introducing significantly improved vehicles were the key approaches. These moves were met with much less resistance within GM than had Roger's similar initiatives as GM management ranks were stinging from their recent near-bankruptcy experience and were much more willing to accept the prospect of radical change.
For the remainder of the decade the company's profits rebounded and it made market share gains with the popularity of its SUVs and pick-up truck lines.
Rick Wagoner had served as the company's Chief Financial Officer during this period in the early s. GM's foreign rivals gained market share especially following U. Trade issues had prompted the Reagan administration to seek import quotas on some foreign carmakers. Later, the Clinton administration engaged in trade negotiations to open foreign markets to U.
After GM's lay-offs in Flint, Michigan , a strike began at the General Motors parts factory in Flint on June 5, , which quickly spread to five other assembly plants and lasted seven weeks. Because of the significant role GM plays in the United States, the strikes and temporary idling of many plants noticeably showed in national economic indicators. In the early s, following the first Gulf War and a recession, GM had taken on more debt.
In the late s, the U. In , following the September 11th attacks , a severe stock market decline caused a pension and benefit fund underfunding crisis. GM began its Keep America Rolling campaign, which boosted sales, and other auto makers were forced to follow suit.
The U. In , GM redirected resources from the development of new sedans to an accelerated refurbishment of their light trucks and SUVs for introduction as models in early The current marketing plan is to tout these revised vehicles extensively as offering the best fuel economy in their class of vehicle.
From June to September , the Federal Reserve , in a move to quell potential inflationary pressures created by, among other things, the stock market, made successive interest rate increases, credited in part for "plunging the country into a recession. Although GM had already taken action to fully fund its pension plan, its OPEB fund became an issue for its corporate bond ratings. GM had expressed its disagreement with the bond ratings; moreover, GM's benefit funds were performing at higher than expected rates of return.
GM began its Keep America Rolling campaign, which boosted sales, and other automakers were forced to follow suit. As part of the deal, GM granted Fiat a put option , which, if the option had been exercised between January and July , could have forced GM to buy Fiat.
GM had agreed to the put option at the time, perhaps to keep it from being acquired by another automaker, such as DaimlerChrysler , competing with GM's German subsidiary Opel. The relationship suffered and Fiat had failed to improve.
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In March , GM divested GM originally invested in Suzuki in the early s. Investors also included Citigroup 's private equity arm and Aozora Bank of Japan. In , GM offered buyouts to hourly workers to reduce future liability; over 35, workers responded to the offer, well exceeding the company's goal. GM gained higher rates of return on its benefit funds as a part of the solution. But GM remained afloat and the company's stock in the Dow Jones industrial average posted the biggest percentage gain in Having sold off the majority, it will, however, keep its heavy-duty transmissions for its trucks marketed as the Allison series.
During negotiations for the renewal of its industry labor contracts in , the United Auto Workers UAW union selected General Motors as the "lead company" or "strike target" for pattern bargaining. Late in September, sensing an impending impasse in the talks, the union called a strike , the first nationwide walkout since individual plants had experienced local labor disruptions in the interim. Within two days, however, a tentative agreement was achieved and the strike ended.
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The deal will increase GM's liquidity and echoes previous moves to shift its focus towards its core automotive business. The two firms will control seven factories around Indianapolis but GM will retain management of a factory in Baltimore. Former Allison Transmission president Lawrence E.