America: My Time

Chapter 388 The Decaying Universal
Chapter 388 The Decaying Universal
Just as the First Lady was about to leave, she saw someone walking towards John and suddenly said with interest to Brant, the White House chief of staff beside her, "That person looks like Morgan's manager?"

Brant glanced at him and immediately nodded, saying, "That's right, he's Mr. Jimmy, whom Morgan has always valued, Morgan's important assistant, and one of Mr. John's closest business friends!"

As the Chief of Staff, it was natural for him to know about the guests. As one of Morgan's most important and capable assistants and one of Morgan's managers, Jimmy was naturally someone he was paying attention to.

"John, it seems you're still quite popular!"

Hearing someone greet him, John, who was dealing with some people with ulterior motives, subconsciously turned his head and saw Jimmy with a smile on his face. As an old friend who knew him well, John was not surprised by Jimmy's appearance. He smiled calmly and said, "I didn't expect to be welcomed like this either. It's just that I don't like these kinds of dinner parties. They're too troublesome and too noisy!"

"Haha, you have to get used to it. You'll be attending more banquets in the future. After all, you're no longer a student. In the past, people would consider your status and wouldn't invite you. But now everything is different."

"I know, but I find it difficult to fit into this kind of occasion. However, you didn't come to see me just to say hello, did you? Please just say what you need!"

"It's nothing major, just something about General Motors that we need to talk to you about. It's a headache not only for Morgan but also for DuPont. We want to talk to you about how we can turn things around!"

"General Motors? You've come to the wrong person. I don't know much about the automotive industry, and as you know, Bentley's situation is different from GM's! If you want to solve the problem, you need to find an expert to come up with a solution. Asking an outsider like me won't yield any good results. Bentley's situation isn't fully on track yet, so what ability do I have to guide you? Besides, Ms. Mary Barra was brought in from GM!"

“I know, but those experts' words are not to be trusted at all. GM's situation is getting worse and worse, to the point where we can't tolerate it anymore. Even changing the president hasn't helped; there's still no sign of improvement. If this continues, GM's losses will only get more severe. Let's go over there; the DuPont people are waiting for us!”

John sighed at Jimmy's request. Although he was unwilling to get involved in such matters, he had no choice. After all, he had to give face to Morgan and DuPont, and Jimmy was an acquaintance. He couldn't be ungrateful. Moreover, given General Motors' current situation, it wouldn't be easy for them to get out of their predicament.

Guided by Jimmy, John and Naoko arrived at a corner where there were few people. John saw DuPont's people, but not Morgan or the bigwigs of DuPont. It seemed that this matter at General Motors was to be handled by Jimmy and DuPont.

John's every move naturally attracted attention. Many knew about GM's situation—the losses were devastating, and nobody was optimistic about the company, at least not now. However, some were curious about John's conversation with Jimmy and the others, wanting to know how this extraordinary talent viewed General Motors.

After introducing John, Jimmy said with a wry smile, "John, you have to help me this time. DuPont and I will now solve the problems at General Motors. At the very least, we need to come up with a solution that satisfies both sides. We can't just watch General Motors continue to suffer such crazy losses. No matter how big or powerful a company is, it can't withstand such losses!"

“Mr. John, Jimmy is right. We really find it hard to accept the losses at General Motors right now. Even with Roger Smith, a manager with a proven track record of long-term planning, there has been no improvement. This is unacceptable to us. If this continues, General Motors will go bankrupt!”

"I've done some research on General Motors. After all, Bentley is in the same industry, so having some understanding of our competitors is necessary. But what I have to say is that GM is rotten to the core. Its market share is constantly declining, and we won't go into the reasons why. As for Roger Smith, I don't have a high opinion of his abilities. Perhaps he has good vision and ability in long-term planning, but I doubt he's good at management. For one thing, his disregard for competitors is a fatal flaw. I remember him mocking Japanese cars. What have the Japanese invented in the automotive field? All I can remember is that tiny coin box!" "Yes, Roger Smith did say that, but what's wrong with that?"

"This is a huge problem. They even underestimate their competitors. With a president like him, how can any company possibly take them seriously? I believe many people know how much impact Japanese cars have on the US market. This isn't because the Japanese are too capable, but because of problems within the US auto industry itself. Many people are now pushing all the blame onto Japan, but they have never faced their own shortcomings. How can such a company be competitive in the market?"

“We hadn’t considered this issue. We thought it was just a casual remark and didn’t pay much attention to it!” Jimmy nodded thoughtfully at this point, realizing that this might be what they had overlooked.

John smiled calmly, shook his head, and said, "The most important problem is the rampant corruption and bureaucracy. General Motors has become too corrupt under Roger Smith's leadership. As far as I know, GM gives its board members a new car every three months, and the speed at which they're dealing with things that are difficult to resolve is also decreasing rapidly. If you want to change the situation at GM, you have to be ruthless and carry out a real purge. Jimmy, you should be familiar with this. The reason why Universal Pictures and NBC were able to transform so quickly under Legendary Entertainment is that the most fundamental problem was the purge. We need to purge all the power at the top, and then we can plan its development with peace of mind."

John paused at this point, then sighed, "However, if we do this, the entire General Motors could be plunged into an even bigger storm, and there might be a crazy strike. You should think carefully about this."

Is John exaggerating? No, this could really happen at General Motors right now. Nobody wants to be ousted, and such a purge will inevitably lead some people to do irrational things. Besides, John doesn't believe that those bastards at General Motors have some kind of shady deal with the United Auto Workers.

“John, this is a really difficult decision, and it’s not a decision we can make.” Jimmy sighed when he heard John’s words; he hadn’t expected this situation.

"Hehe, that's normal. However, you don't have much time left. I don't know how you view Japanese cars, but Honda's factory in Ohio is quite impressive. To be honest, even Bentley is learning from them, but GM is ignoring their existence. In my opinion, if the American auto industry doesn't change in the future, Japanese cars will definitely become mainstream in the United States and occupy most of the American market."

"But many people say that cars in Japan are unsafe?"

"Unsafe? Of course I know that Japanese cars are economical in many ways, but their production costs are low and they are fuel-efficient, which makes them appealing to people who are not well-off. No matter how good your cars are, if they are too expensive, it won't work. GM has many problems. If you really want to solve them, then make a firm decision and carry out a major overhaul to thoroughly understand the true situation of GM. Otherwise, nothing you say will be of any use. Without change, I don't see a way out for GM, and it won't improve for years. Those insightful and capable guys have all been fired."

Seeing Jimmy's shocked expression, John smiled calmly and said, "I know many guys are advocating for higher tariffs to protect their own interests, but I want to say that such methods won't change their situation. The only ones who can truly survive in the market are those who improve their own strength. A group that only thinks about using underhanded methods to restrict their competitors' development, instead of focusing on their own research and development, will be useless no matter how much support they receive. I don't know what others think, but in my opinion, the investments in Game World, Dream World, Nvidia, and Bell Labs are astonishing, as is those in Bentley Motors. We've always been increasing our R&D funding instead of focusing on other things. If General Motors wants to change, it needs to be determined!"

John's remarks gave those who were interested pause for thought. Those familiar with the gaming world, the dream world, and Nvidia knew how astonishing their R&D investment was. Nvidia's meteoric rise in the semiconductor field was due to its massive investment in R&D. Moreover, in the early stages, they focused solely on chip research, achieving specialization without competing with those Japanese companies for storage profits. Knowing something is one thing, but actually doing it is another.

General Motors had numerous problems, which Morgan and DuPont were fully aware of. They were perfectly aware of them, but they lacked the resolve to make changes and were unwilling to risk bankruptcy. No pain, no gain; without a major overhaul to eliminate all the problematic elements, how could General Motors possibly transform itself?

(End of this chapter)