Monthly Brent Spot (Crude Oil) Prices Over the Last 20 years
I think you are trying to lay the blame on the wrong people. The reason why GM is in this mess it partly because of external factors and not necessarily because they sell bad cars, which they don't. Prior to the rise of gasoline from 2003 to 2008, GM was making profits. The rise in the price of gas made consumers not only change their driving habits, but also their buying habits as well. Consumers began to opt for more fuel efficient vehicles instead of gas guzzling luxury vehicles and SUV's. Even if GM could recover by issuing a more fuel efficient car, the normal design cycle of 3 years would have prevented that from happening until sometime last year (
which is the case). Toyota was in a better position since they had their alternative, the Prius -- their first hybrid vehicle -- released to the world wide market in 2001. Its sales began to pick up sometime after 2003. This is key because it occured after its second design cycle. GM, on the other hand introduced its electric vehicle, the EV1 in 1997 and had discontiued it by 2003 after 2 design cycles due to poor sales. Had they introduced the car to the market in 2001 like Toyota did, it may have been a different story. This was all a matter of timing and you really can't blame the execs nor the workers at GM for that. They all regret the fact that they couldn't keep the EV1 since it would have led to an earlier release of the Chevy Volt. Then again, I don't think anyone would have predicted the trend of crude oil to go beyond $60/barrel in 2003.