First, the bulk of the cost reduction benefits

First, the bulk of the cost reduction benefits were shared with only two stakeholder groups: employees and shareholders. Labor peace had a high price in increased MBT Staka, wages, benefits, and work rules. Over the entire period, these costs rose much more rapidly than for most worldwide competitors.

Because Ford and Chrysler produced many fewer of their own parts, these high-cost labor contracts affected the General Motors cost structure more than anyone else's. In addition, a very high percentage of the earnings of General Motors were paid out in dividends to shareholders. Such funds were not available to reinvest to Mbt Unono, lower costs, create more customer and end user benefits, and more attractive pricing.

Companies that reinvest the bulk of such cost proceeds to benefit customers create the potential for further gains in cost position, while those who consume the gains in other ways may lose many of the benefits they have if competitors do more, or more effective, cost-improvement reinvesting.

Second, the company did not do significant work on creating and applying new business models for its base automobile business until the Saturn experiment began offering cars in the 1990s. During those years, Toyota pioneered the so-called lean manufacturing process that provided customers with cars built to their own specifications with higher quality in just a few days while investment levels and costs were slashed by these improved methods.

Although GM did some experimentation in this same area by partnering with Toyota, the lessons of Saturn and lean manufacturing were not widely disseminated throughout the company.MBT Salama Sandals As a result, most of GM's investments came in support of the company's outmoded, high cost business model.