[longdx]

GM is producing quality cars with increasing reliability. That being said, the current problems with GM start with lack of foresight. What I mean. is that GM tended to be reactionary in their product planning. They based the bulk of their profit potential on SUV and large truck sales. That was fine when gas was relatively stable in the nineties . Without focusing on other segments (i.e. alternative fueled vehicles, smaller cars) for when the gas spikes occured, GM was left in a lurch. GM also aggressively bought other car companies without really utilizing them in the marketplace. They bought Fiat only to sell them back to Italy at a $2B loss. They purchased a large stake in Subaru only to never use their expertise in AWD and boxer engines. They bought Saab and upset the loyalist by using GM ecotec engines in these vehicles (very nice engines , but diluted the spirit of Saab cars) They purchased and expanded Hummer. These were niche vehicles during good times but look like dinosaurs in today's market.

Until recently, they had the highest employee cost (insurance, wages, retirement) that ate profit potential of smaller vehicles (thus GM's aversion to small car production: until recently why the Cavalier was on the market for almost 20 years with only one major redesign). Couple that with almost 2 decades of shoddy workmanship (1970-1990-s) that alienated an entire generation of potential buyers ( and eroding GM's share of the US market) with lackluster dealer support and you have GM realing right now. GM also has too many redundant vehicle lines that fight for the same piece of the market.