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Saturn was Supposed to Save GM (Visit this link)
Paul Ingrassia from Newsweek: It's hard to remember a time when the top man at GM was the most celebrated industrialist in America, maybe even the world. But that was the case on January 8, 1985, when Roger B. Smith convened a press conference in Detroit to make what he billed a "historic announcement." But on this wintry day in Detroit, Smith would make his biggest gamble yet: unveiling the Saturn, GM's first new brand in 70 years. More than just a car, it would be a stand-alone subsidiary—using innovative technology by workers and managers engaged in unprecedented joint decision making. "Saturn is the key to GM's long-term competitiveness, survival and success," Smith said. Its mission: "to develop and produce an American-made small car that will be fully competitive with the best of the imports … [and] affirm that American ingenuity, American technology and American productivity can once again be the model and the inspiration for the rest of the world." Twenty-four years later, Smith has passed away, and his dream is in shambles. GM is fighting for its life; its CEO, Rick Wagoner, was ousted by the federal government as part of a bailout effort that may yet involve bankruptcy and billions more in taxpayer dollars. The Obama administration is contemplating splitting GM in two, dividing the "good" from the "bad"—a plan that, if adopted, would essentially treat Saturn as a toxic asset to be sold off like so much subprime mortgage debt. GM has 60 days to submit a new plan to the White House, but its first one called for Saturn to be phased out by 2011, unless a "Hail Mary" play by its dealers to buy the brand succeeds, or a better alternative can be found.
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