GM managers must toe the line

Meantime, G. Richard Wagoner Jr., president of GM's North American Operations, says the automaker's corporate structure has been changed so managers are more accountable. They now are assigned specific responsibilities for achieving NAO objectives, such as cost reductions and productivity gains. Those who fail to meet the goals will be pushed out, executives indicate, unlike the old days when GM's rule-by-committee-culture made it difficult to target those responsible for poor management decisions. In addition, beginning next year management compensation will be tied to GM's new business-unit profitability-measurement system, says Chief Financial Officer J. Michael Losh. Return on net assets will become part of the company's bonus plan. At present the return is 7.6%. GM's target is to average 12.5%.