Saturn Orbits Car Making into the Twenty-First Century. A Case Study
Abstract
This case study focuses on the development and production of General Motor's Saturn automobile and its impact on GM's declining competitive position in the industry. By implementing a management philosophy that relies on consensus decision-making, a manufacturing approach blending new technologies with a highly motivated work force, and a unique sales and distribution system, Saturn plans to meet its competition head-on, capturing 80 percent of its market from non-GM owners. In production since 1990, Saturn has been rated by automobile industry analysts to be one of the best in the compact car category in quality and styling at a highly favorable price. It ranked third in customer satisfaction behind the prestigious Lexus and Infiniti by one industry survey. Yet Saturn has not been profitable in its early years of production and still has not met its planned production capacity. The issues addressed in this case include an analysis of the pros and cons of GM's strategy to invest $3 billion in Saturn, a contrast of mass production to Saturn's lean production techniques, a comparison of Saturn's development to the defense acquisition process, and an assessment of the survivability of the U.S. automobile industry.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1993
- Accession Number
- ADA276779
Entities
People
- Jeanne K. Vargo
Organizations
- Dwight D. Eisenhower School for National Security and Resource Strategy