Fernando Fuster-Fabra's Blog


The recent announcement of GMC’s plants and work force in the U.S.A. is the culmination of its erroneous posture toward the recommendations of W.E. Deming as to manufacturing processes. In spite entrepreneurs refusing to accept the fact that uncorrected errors have a cumulative effect on business development, History shows time and again that advances in management techniques cannot be continuously ignored. Innovation is not only about machines, patents, IT & Biomedicine. It has even a more relevant implication when we refer to innovation in decision-making processes that enhance competitiveness by means of efficiency improvement based on talent management & transformation.


Deming set out the guidelines that today are known as TQM but this visionary had to travel far from his homeland in order to implement his theories. The arrogance of the Detroit magnates ignored Deming’s proposal in their obvious blindness at medium-long term effective executive management of U.S. automotive industry supremacy at the middle of the past century. Thus, Deming set up his Total Quality laboratory in far-away Japan where Japanese entrepreneurs listened and applied his teachings. From said relationship came into practice such techniques such as Kaizen and Just-In-Time. Today, no one doubts about Deming’s teachings and TQM techniques are widely extended worldwide. I had the opportunity to live said experience personally as an engineering student, recalling Deming’s sadness at not having convinced his own countrymen in the car manufacturing business.






It was not until the ‘80s that the U.S. automotive industry called Deming to aid them through what was their first crisis. By then, TOYOTA had taken on a head-start of two decades with other Asian car manufacturers following suit. Detroit had lost its automotive industry supremacy.


Therefore, it is not strange today that GMC has had to admit its irreversible entrepreneur deterioration announcing the closure of 16 plants and the laying-off of 21.000 workers. The disappearance shortly of one of its oldest trademarks – PONTIAC – must have been a hard decision to take. GMC, like its other American competitors, FORD & CHRYSLER, has had a continued exercise of arrogance since the days of Deming’s professional self-exile to Japan. Today, GMC has been forced to bow down in humiliating defeat due to its lack of vision and effective talent management.



Madrid, April 30, 2009





  1. […] Original post by fernandofusterfabra […]

    Pingback by GENERAL MOTORS: OUTCOME OF TQM REJECTION IN THE ‘60s — April 30, 2009 @ 3:06 pm

  2. Watch out for the press conference that will let the cat out of the bag. Obama means business and business executives must face facts – they are ages behind adequate Human Resources management techniques for effective business practices in the New Millennium. I thought I had to add this comment for readers just before the news is realeased.

    Comment by Fernando Fuster-Fabra — April 30, 2009 @ 4:08 pm

  3. Chrysler has had to bow down too. Will the merger with FIAT be the right solution? You may be right that President Obama means business. The 30-day grace period seems to indicate so.

    Comment by Leonard E. — May 1, 2009 @ 9:27 pm

    • The alliance with FIAT seems CHRYSLER’s only way out in the 30-day time limit established by Obama at the press conference. The smaller stockholders have fallen out of the deal but the White House must have some hold on the larger ones and the executives to pressure them into the merger. FIAT can contribute towards a more sensible production of bantam cars in which the american manufacturer may not be too well placed. With the crisis, cheaper models consuming less fuel will be in greater demand and easier to sell. Definitely expensive sedans will slowly disappear.

      Comment by fernandofusterfabra — May 2, 2009 @ 5:16 pm

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