With General Motors (GM) in Chapter 11 bankruptcy proceedings speculation is running high on how the new ownership structure will affect the company. There's no question that government ownership of a private sector company is fraught with hazards. After all, the government doesn't have an impressive track record of their own management, let alone something as complex and timing-sensitive as the automobile industry. And traditionally the Union has had an us and them relationship with GM.

General Motors also had poor quality and bland designs in the 70's and 80's, enabling the Baby Boomers' perception that foreign was better. Perceptions lag product, and GM is still playing catch-up despite its impressive number of high-quality, well executed cars and trucks in the last couple decades. And of course, there are environmental and political agendas suggesting that GM is making the wrong vehicles. This despite America's proven reluctance to buy small cars.

So really, it's almost inevitable that consumers are wary and the editorial opinion is that America's largest and most prolific manufacturing AND technology base is obsolete.

Yet, for the first time in their history, General Motors has the active support of the U.S. Government, the Canadian Government and the United Auto Worker's Union. This is an unprecedented opportunity to focus on what GM does best:: producing great cars. Objectively, the product quality and design is there, and GM has made incredible strides forward in efficiency and cost. It's arguable that if not for the collapse of the financial markets, GM would be poised on the brink of success, not bankruptcy.

In a new management philosophy, GM has embraced the change and has updated their website with a comprehensive view of the changes they're facing and its plans to meet them (www.gmreinvention.com). The change is referred to as Re: Invention. It's an obvious effort to reassure the public as well as current and potential customers, and it's a welcome departure from the days when only the top people at GM knew what was going on.

Despite all the speculation, however, there is really no way to determine the future of GM and their new ownership structure through mass media channels, be it the news, print or Internet. The true test is to monitor the new product offerings. Despite the loans, restructuring, plant closings and bankruptcy, GM has stayed on track with development and design and has a strong line-up of cars scheduled for launch in 2010 and beyond. This line-up includes the much acclaimed Volt, but it's not the only vehicle worth watching. (It is, however, important to note that the battery industry that will arise in the U.S. is due to GM's research, development and ultimate launch of the Volt all set in motion years before the financial melt-down.)

In the end, the measure of the company has to be the strength of its product, not it's ownership structure or outdated perceptions and editorial opinions. And General Motors has world-class, standard setting products.

Learn more about this author, Tracey L. Howard.
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