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What Happened When Automation Came To General Motors? (qz.com) 198

General Motors was once the world's most profitable company -- for two decades -- and by 1970 its revenue was $22.8 billion (or $152 billion in today's dollars). But five weeks ago GM announced that it was finally ending small-car production and closing its Lordstown Assembly plant in Youngstown, Ohio.

So what went wrong? Quartz argues that GM's decline "began with its quest to turn people into machines," as "the company turned assembly work into an interlocking chain of discrete tasks, to be executed by robots whenever possible." In an article shared by Slashdot reader reporter, Quartz argues that seen in that light, the company's response to a 1972 strike "marked the beginning of the company's long but uneven descent, which would be characterized by a repeated impulse to bet on fancy, futuristic but unproven technologies while undervaluing its workers."

But the strike also raised larger issues for "a massive special task force" issuing a federal report on the quality of working life in 1972, titled Work in America... [T]echnology had failed in its promise to free humans from drudgery and wring profit from their talents, the authors said. On the contrary, the new jobs created generally required minimal expertise and therefore prevented workers from honing their skills. That stymied career mobility and left people mired in the same torpor of boredom for decades. Despite this, America continued to offer its young people increasingly rigorous education -- even as work life left little opportunity to apply it.... The larger hopes and ambitions of Work in America -- the vision that saw satisfying work itself as essential to the health of American society and democracy -- exists now as little but a curio in the footnotes of academic journals....

Meanwhile, GM continued to lavish spending on big capital investments, confident that the secret to competitiveness lay in replacing humans with technology. But as in Lordstown, the spending bore little fruit. As automotive analyst Maryann Keller recounted in her 1989 book Rude Awakening, one GM executive observed that, between 1980 and 1985, the company shelled out an eye-popping $45 billion in capital investment. Despite that spending, its global market share rose by but a single percentage point, to 22%. "For the same amount of money, we could buy Toyota and Nissan outright," said the executive -- which would have instantly bumped GM's market share to 40%.

At GM quality suffered because "Instead of making flawless cars, workers simply did their assigned jobs," Quartz argues. "Workers had no big-picture goal of building cars together to motivate them."

The 7,000-word article concludes by noting that Youngstown residents still hope that their car factory will re-open. But it's also possible that instead Lordstown Assembly "will remain standing, but empty, a vast roadside reminder of a corporate elite's doomed quest to cheapen labor by stripping the human need for skill, learning, independence, and purpose out of production, by reimagining people as machines."
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What Happened When Automation Came To General Motors?

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  • by LynnwoodRooster ( 966895 ) on Saturday January 05, 2019 @10:37AM (#57908860) Journal
    They didn't melt down - and they had the same basic internals with automation and labor. It was GM's belief it was "too big to fail" and its poor designs for 15 years that killed it. The hallmark of much of manufacturing is to treat people as "assigned job robots" so that they can do their one job really well - but to throw an exception when they see something related to their job that is wrong. It wasn't what TFA is talking about at all - it was GM's arrogant leadership.
    • Yes, GM was behind the trends. No one wants the vehicles that were being produced at the plants that are closing down. "Cars" have fallen out of favor for truck-like vehicles.

      Frankly so much has changed since the 70's that comparisons to them are pointless unless done really well, with a level of analysis beyond Quartz. Armchair comparisons may reflect inflation but do they consider all the other quality of life improvements that many of the US's "poor" have these days?

      • This.

        It's a vague reference to the thermometer that is oil. When the next oil crisis arrives, consumers will sell off the trucks and SUV and buy subcompacts instead.

        Those in the auto industry who fail to adapt, as GM did regarding oil saturation, will suffer similar fates.

        • When the next oil crisis arrives, consumers will sell off the trucks and SUV and buy subcompacts instead.

          Doubtful. It's going to be far more cost effective for automotive manufacturers to just switch to an electric drive-train than it will be to retool entire lines to make smaller cars, and to dust off plans for smaller, more efficient engines and get lines up and running for those.

          That's almost possible now, but not quite. In another 5-10 years? Shouldn't be a problem.

          The biggest issue will be enough batteries, and more than likely, that's where Tesla ends up making the big bucks. Couple more gigafactories, and they can start to supply everyone else.

    • by Futurepower(R) ( 558542 ) on Saturday January 05, 2019 @01:03PM (#57909326) Homepage
      "It was GM's ... poor designs for 15 years that killed it." -- from the parent comment.

      The poor designs were at least partially deliberate, apparently. Most car buyers weren't knowledgeable about cars. The bad designs made more money for GM car dealers. The dealers wanted more work, so they wanted more failures. The dealers would make huge amounts of money and would pay for expensive local advertising.

      A friend of mine who was also 14 years old then, and who had a father who was an excellent mechanic, suggested we ride our bikes to the places where GM and Ford stored their cars when they arrived in the local area. My friend demonstrated sloppy GM design. Then we went and looked at Ford cars. They were much better designed and built.

      Back when car buying became very popular in the U.S., and many years later, it was See the USA, in your Chevrolet". [youtube.com]

      My understanding is that now the best car manufacturer is Toyota. My understanding is that cars designed in the U.S. are far more likely to fail.

      10 Least Reliable Cars -- Consumer Reports' annual survey exposes the models with the greatest risks of problems. [consumerreports.org] (Oct. 24, 2018 )

      The U.S. has laws that prevent car manufacturers from selling directly!!! One story: Tesla US dealership disputes. [wikipedia.org] Amazing!!! Laws that help car dealers make more money. Quoting that Wikipedia article:

      "48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers, and although Tesla has no independent dealerships, dealership associations in multiple states have filed numerous lawsuits against Tesla, to prevent the company from selling cars."
      • by Anonymous Coward

        My friend demonstrated sloppy GM design. Then we went and looked at Ford cars. They were much better designed and built.

        Got any specifics? Because I've seen my share of 60s, 70s, and 80s (and later) GMs, Fords, and Chryslers. And Datsuns (Nissans), Toyotas, and Hondas. And VWs, Audis, and Mercedes. And there isn't any appreciable difference between any of them in terms of design AFAICT. They were all pretty much all designed – at the macro level – the same. The difference beween a Chevy Monte Carlo and a Ford Torino was, literally, just how they looked and which name was on the grill.

        At the end of the 70s and beg

        • by HornWumpus ( 783565 ) on Saturday January 05, 2019 @03:26PM (#57909788)

          The Japanese invented (first to implement anyhow) the hard chrome rings trick. That's what turned 100k mile engines into 250k. The world copied them about a decade after (mid to late 80s). Once consumers saw how long Hondas and Toyotas were going on the original engines.

          I wouldn't be at all surprised to find that GM, Ford, Mercedes, VW etc had sat on that for decades. Liking the service income.

          My dad remembers the annual valve job and 40k rings and bearings. Yeah metallurgy.

          American cars truly did suck in the 80s, beyond the sloppy body fits which were just longstanding crap standards. The only computer controlled carb worth a shit came from Japan. Thank dog we've settled into EFI. EPA rules and carbs made for absolute shit engines, from everyone.

    • by gweihir ( 88907 )

      I agree. This is somebody desperately trying to argue that mass-production (of all things!) is better be done manually by hand than by automation. Complete nonsense. GM just did it wrong.

  • Um... no (Score:5, Interesting)

    by rsilvergun ( 571051 ) on Saturday January 05, 2019 @10:42AM (#57908872)
    GM's decline came when they started making crappy, low gas mileage cars and ignored the Japanese's well built, high mileage cars. Toyota, Nissan and even Hyundai produce decent cars with lots of automation.

    GM's suits don't like paying to build quality except in Trucks where the higher profit margins mean they can spend a little more (and even there they lag behind Ford & Toyota). They'd rather chase short term profits and let the Government bail them out every 10 years because they know we need their factories in case we need to ramp up for war.

    And tech didn't free us from drudgery because we didn't let it. Instead of cutting our work weeks we used the improvements in productivity to lay people off, reducing the demand for labor and then using the reduction in demand to cut wages (yes folks, supply and demand work both ways). Based on productivity gains (real ones, e.g. manufacturing and farm outputs, measured productivity is kind of iffy because it includes the largely make-work service sector economy) we should be working 20-30 hours a week tops but we're pushing over 50. Stupid motherf*ing puritanicals...
    • by DarkOx ( 621550 )

      Its easy to say that but the truth a bit murkier. Most of us can't work 20-30 hour weeks because we want (I use the term loosely) to consume more services, such as modern medicine that did not exist 60 years ago; oh and fun a full 30 years of retirement too.

      So it was a question what would amount to being job sharing and working half a week or earning enough to fund those wants at the cost of displacing someone else; someone else who by the way is being taken care of by the government. The government is fu

    • by Octorian ( 14086 )

      They'd rather chase short term profits and let the Government bail them out every 10 years because they know we need their factories in case we need to ramp up for war.

      This is often cited as the reason that the US Gov't never lets them fail, and they can get away with running a terrible business indefinitely. However, I often wonder how valid of a reason this really is. Given what's involved in manufacture of modern military hardware, how realistic is it to repurpose a GM factory? Would it actually take less time/effort than simply helping the various defense contractors to stand up entirely new facilities?

    • by Mashiki ( 184564 )

      GM's decline came when they started making crappy, low gas mileage cars and ignored the Japanese's well built, high mileage cars. Toyota, Nissan and even Hyundai produce decent cars with lots of automation.

      That was ~40 years ago, and even then in the 1980's post-gigantic fuckup with the cheaper JP imports they were massive. Stupidly massive on a scale that would surprise you, they were heavily diversified in everything from raw material extraction to refining. And the 'emerging markets' of IBM-compatible components and held companies like EDS and GM-DIESEL(now known as Electromotive), if you're unfamiliar with GM-Diesel they held around 70% of the train engine market, and emergency generator market in the 1

    • It's worth noting that Nissan merged with Renault a long time ago, and since then, Nissan's quality (and business) has gone down substantially. Among Japanese manufacturers, Subaru seems to have filled the market hole left by Nissan.

  • by BrookHarty ( 9119 ) on Saturday January 05, 2019 @10:54AM (#57908900) Journal

    I've worked at multiple companies where a VP goes with a vendor, buying 10s of millions of dollars of network gear, then goes to work for them after a year or 2, after the hardware is deployed.

    Theres always seems to be some kickbacks, wouldn't doubt some GM execs went to go work for those manufacturing/robot vendors after buying billions in equipment.

  • by Kjella ( 173770 ) on Saturday January 05, 2019 @11:03AM (#57908912) Homepage

    Everybody else was automating too, if they stood still or went backwards towards more manual processes they'd be long since dead. Besides, automation is a bottom-up process, you automate the simplest, most routine operations freeing up people to do more complex tasks. If they couldn't grok it 50 years ago, they should see what assembly line work was like 100 years ago. There was competition and they lost, simple as that. A lot of people reason like things were great, we made changes, then things were shit, so the changes were shit. That happens too, but sometimes the world is changing around you and you can either try to roll with it or bury your head in the sand and hope for a miracle.

    Despite all the "you get what you pay for" trash talking the truth is that automation is often really good at pushing out thousands of almost identical objects. Sure those objects can be built flimsy and cut safety margins to sell even cheaper, but that's a problem with the market and not the tool. Maybe I'm just exceptionally lucky but I find it's really rare that I find something that's a manufacturing defect. It's usually either a design flaw meaning they all got it or it's transport damage somewhere between the factory and me. Of course nothing is ever without exception, but unless it's like really unique handmade piece of art you don't get special attention with manual labor either it's just dull routine work.

    • by dgatwood ( 11270 )

      It's usually a design flaw.

      FTFY.

      If a vehicle gets damaged between the assembly line and the customer, short of someone wrecking it, that's a design flaw. Vehicles should not be that fragile.

      Ironically, this is a problem that automation is likely to make worse. If a part is defectively weak by design, the rate of early breakage during assembly will be much higher with human assembly than with automated assembly, because humans are less careful. This can make design flaws in parts obvious earlier, which in

      • by Kjella ( 173770 )

        If a part is defectively weak by design, the rate of early breakage during assembly will be much higher with human assembly than with automated assembly, because humans are less careful.

        What part of a car do you think is meaningfully tested through assembly? I'd say next to nothing. Sure it would be nice if it was factory tested afterwards, but I doubt anything is so flimsy that it breaks when you're putting it together. Even cheap plastic crap from China typically lasts a little while before it breaks...

    • Repeat after me: Toyota smart, GM dumb

      Toyota was well managed and navigated the same waters as GM, but the results were completely opposite. If you aren't familiar with Toyota's history, it's a pretty interesting read, and a somewhat rare example of good mgmt in business.
  • Tax Payer Bailout (Score:5, Insightful)

    by DaMattster ( 977781 ) on Saturday January 05, 2019 @11:06AM (#57908922)
    It angers me to no end that we bailed out GM. If anything, GM is proof that no business is too big to fail and we should have let GM completely implode. So now GM is going back to building gas-guzzlers instead of responsible, (more) environmentally friendly smaller cars. GM and the other companies that got bailed out are proof that we practice a form of welfare called wealthcare. We had to protect the billionaire class and I am fucking sick of it.
    • Seconded. The only parasite ruining the economy in this story is GM itself.

    • by PPH ( 736903 )

      We had to protect the billionaire class

      Not so much. Equity owners lost their shirts on the GM bankruptcy. Bondholders had to be arm-twisted into taking a deal. What got bailed out was the pension fund. The alternative being the government having to pick up the tab for retirement and healthcare payments.

    • The irony is that the argument put forth by both sides about the GM bailout were backwards. When a company goes bankrupt (chapter 7 dissolution, not chapter 11 restructuring), it does not disappear. The parts are sold off to the highest bidder. Things like factories and their workers become part of another car company. The closer the company was to solvency, the more viable its business was and thus a greater percentage of its parts would be absorbed by other companies. But if a company was in a terrib
      • You seem to not realize that light trucks are a part of Corporate Average Fuel Economy and that CAFE is the primary reason that Ford moved to aluminum bodies for the F-150. Light trucks are classed separately and do have to meet a lower standard. Current average for cars is 34.2 and 26.2 for light trucks.
  • Yes, GM invested in automation but so did its competitors.

    The main problem was twofold. Bad leadership that couldn't look further than end of quarter results and labor unions that forced companies to keep people in the same torpor of drudgery rather than uptrain the good ones and fire the bad ones. GM still can't fire workers until they have to close down the entire factory, so you end up with line workers being bored most of the day as they meet their quota faster and faster due to automation.

    Japanese car

    • by Anonymous Coward

      A funny observation: all the right skills and motivation often implies unbearably difficult work. I bet someone with the right skills and motivation tends to figure out how to make work easy. Unless, of course, they are being hindered in some way from achieving their goals

    • "Japanese car companies on the other hand invented the kanban board and people with the right skills and motivation drifted to the top, the rest fell to the wayside."

      So GM not firing workers led to this mess, while the Japanese, who were famous for being _unwilling_ to fire workers, leapfrogged them?

      • by guruevi ( 827432 )

        I don't think you read this right. There is an entire different mentality, unions prevent people from being promoted and force people to work in a particular position. Sure, Japanese manufacturers often can't layoff workers due to Japanese labor laws but those people aren't then forced to work and don't get pay raises every year either like the labor unions require.

  • by Fringe ( 6096 ) on Saturday January 05, 2019 @11:11AM (#57908936)
    Automation didn't kill G.M.; it slowed the decline such that the existential threats faced by G.M. seemed manageable.

    On the management side, G.M. had competing brands wit their own bureaucracies and managers, fighting each-other for R&D budgets, production resources, marketing dollars and more. It wasn't Buick against Mercury, but rather Buick against Oldsmobile, Chevy and Cadillac. It wasn't Camaro vs Mustang but Camaro vs Firebird.

    And it was the union vs the company. Any proposed changes came with significant concessions to the union, or with a strike.

    Take the Saturn effort... which was designed to be "clean-sheet" (rather than badge-engineered clones, such as the above-mentioned Camaro/Firebird.) The Union forced GM to cede significant control to the union, even before the factory opened, including:

    • No time clocks
    • Permanent Employment (== no layoffs)
    • According to UAW President Owen Bieber, the union would have veto power over all decisions
    • Supplier contracts were awarded based on points... which that awarded extra points to unionized suppliers... which were often both higher price and lower quality.

    That's what killed G.M. Not automation, but the combined culture of competing accountants and a greedy-and-hostile monopoly for the labor (UAW), both of whom could only act on relatively short timeframes.

  • between 1980 and 1985, the company shelled out an eye-popping $45 billion in capital investment. Despite that spending, its global market share rose by but a single percentage point, to 22%.

    There is a hidden assumption here that corrupts that statistic. "If GM had not made the investment, there would have been NO change in their global market share."

    This is important, because without considering that, "22%" has no point of reference. The assumption is the reference is 0% - "no change". The likely realit

  • But five weeks ago GM announced that it was finally ending small-car production and closing its Lordstown Assembly plant in Youngstown, Ohio.

    So what went wrong? ... Quartz argues that GM's decline "began with its quest to turn people into machines," as "the company turned assembly work into an interlocking chain of discrete tasks, to be executed by robots whenever possible."

    So the author here seems to think that GM should be keeping its Ohio plant open, producing small cars and employing more people and les

  • The GM plant in town is mostly been demolished now and 2018 was a good year for the city, so FU GM.
  • I suspect poor sales of the Impala and Cruze had a lot to do with it. Plus GM's pursuit of cheap.

    Impala - $40K for a common package. Though listed as a larger car than the Camry, Mazda 6 or Altima. Those are about $10K less and let's face it, the Camry shows up on the "cars most likely to last 200K" list. The Impala doesn't. When I saw the price of the Impala I had to ask "what were they thinking?"

    Cruze - not sure on price. I was considering it, but until 2018, it wasn't exceptional in quality or
    • Cruze - not sure on price. I was considering it, but until 2018, it wasn't exceptional in quality or style. Compare that to a similarly priced Hyundai, Kia, Mazda, Toyota and it will probably get outshined.

      Probably? There is no probably. The Cruze comes dead last (and far back) in every comparison except price. When I was looking for a new car I drove a Cruze. Suck comes to mind as to how to describe it. Everyone knows cars have lots of plastic in them, but to "see" and feel the plastic is off-putting.

  • I have about 20 years of experience working with GM. This is what I think: GM has a disproportionally large number of managers, a lot of the managers are incompetent retrogrades and most of then only are worried about their own well-being and completely ignore company goals. Endless meetings, where incompetent managers talking to each other and wasting the time of competent people. Most of the managers are afraid of decision making and often make often bad (and safe) decisions; lower level managers are afra
    • by dk20 ( 914954 ) on Saturday January 05, 2019 @02:02PM (#57909548)

      Having grown up in a "GM Town" for many years, let me share my opinion.

      GM workers were terrible, they had a HUGE sense of entitlment, knowng they had union protection and could do almost anything they wanted.

      The biggest concern from "management" where i lived was how can they fire the worst of the worst.

      The Employees? If they were not bragging about how they will just "shut em down" if they didnt get what they wanted.. They were faking injuries to take the summer off so they could run their side job (landscaping).

      Most of my neighbours were either drunks, or high all the time.

      There is a "licensed' restaurant right by the plant. During lunch, they'd all head down there and get loaded up before going back to work.

      There wasnt much you couldnt get "on the line".. Chickens (farm fresh), stolen merchandise, drugs of all kinds..

      • by Anonymous Coward

        What you said might be true but the negative impacts of those apparently incompetent workers will always be dwarfed by the leveraged , exponentiated mistakes of managers, owners, and capital. The mathematics behind your assertion simply aren't there.

        The solution: worker owned co-ops. Where the people building the products are the ones who are responsible for making decisions.

  • by WindBourne ( 631190 ) on Saturday January 05, 2019 @01:38PM (#57909444) Journal
    It was GM's management misapplying it.
    GM used robotics to try and replace top talent. Why? Because they are costly. But it is the top talent, such as tool makers, where you get your real innovation. So, GM's management was/is killing its own innovation. We see the same issue throughout America with exporting of jobs. What is left are jobs that can not be exported and even the high-end jobs on these have been replaced with illegals, who then send the bulk of the money out of the nation.

    GM should be looking at Tesla. Musk is doing things right. And rather than claim that GM is better than Tesla (which they do all the time), they would be better to acknowledge that Tesla is destroying them, like the German's have, and then try to learn from tesla. Tesla's model Y, will likely be the most automated vehicle ever done. And knowing Musk, he has almost certainly disobeyed his board and is now designing the car to be much less expensive than the M3. Both in Design, and build.

    GM needs to learn from that.
    • by kackle ( 910159 )
      When Musk was interviewed on "60 Minutes" in 2018, he said that he brought people in to do the work of certain robots because robots break down frequently. I found that interesting, though not surprising if someone actually weighed all of the numbers involved. ...I find that humans love their assumptions (like those made about robots).
  • I don't know all of the factors leading up to GM's situation, but I do not think it's about factory workmanship. I think it's more about poor designs and cheap parts. In the last 18 years I've been driving Hondas putting on ~140K to 160 K miles before getting a different one. Almost no repairs. No wheel bearings, no alternators, no mufflers, no A/C pumps, no water pumps, no timing belts. None of that.

    Friends driving GM Terrains are getting new wheel bearings at 40 K miles, new mufflers at 50 K. D

  • Understand the new production line methods and what improvements they offered metal work and engine design.
    Don't just use robots to produce 20 year old car designs with less union workers.
    Quality control.
    Make the new cars look good, drive well, be efficient and pass on the new technology to people buying new cars.
    10 and 20 year old car parts resold every decade as a new "looking" car is not a new car design.
    Learn from what was working and not working well in a France, Italy, West/Germany, Japan, So
  • I recall being in high school and watching a movie made many years before about working in a car plant. It involved a guy that had been working at the plant for many years and was now working on some machine where all he did was X all day long.

    At one point a new worker asks for his advice working a spot welder because he knew the protagonist had worked it for many years, and our hero tells him there's a trick to it they don't teach you and shows him how to do it. Then the foreman arrives and tells the hero

    • And this needs special mention:

      > At GM quality suffered because "Instead of making flawless cars, workers simply did their assigned jobs,"

      Uhhh, yeah, high quality like the ones coming out of the NUMI plant? Where the workers were often drunk on the job, and put their beer cans into the doors of the cars so there would be a rattle you couldn't fix?

  • It's true that GM car sales have declined to the point that GM doesn't want to be in the business any more. That's because Toyota and Honda captured the US car market by focusing on quality. Toyota and Honda use the same robotic process as GM.

    On the other hand, GM's truck business is doing fine. Is this segment less automated than cars?

  • Why are we picking on GM's decline, such as it is? If robots were the cause, wouldn't all the manufacturers be suffering the same fate?

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