Automotive Fleet
MenuMENU
SearchSEARCH

Ed Bobit's Publisher's Page

In a historic decision in mid-January, GM's Board of Directors approved a far-reaching plan of reorganization that will undoubtedly change many career lives in the company.

Ed Bobit
Ed BobitFormer Editor & Publisher
February 1, 1984
3 min to read



The five-division structure of Alfred Sloan (former chairman) became obsolete around 1965. Whether what they’re doing right now is right, I don’t know, but at least it’s a step away from what had become a straight-jacket.--Peter F. Drucker, The Concept of the Corporation, a classic study of GM’s management organization in the 1950s

When bonus time rolls around every year, there is a big fight over who is responsible for what. Division managers argue that they aren’t responsible for an increase in cost because it was passed on from another division. Successes are always your idea and foul-ups always someone else's.--The Wall Street Journal, quoting a  GM official

Ad Loading...


In a historic decision in mid-January, GM's Board of Directors approved a far-reaching plan of reorganization that will undoubtedly change many career lives in the company. Described as a corporation program designed to bring greater efficiency to engineering, manufacturing, and product development, it translates into a mass move to lower costs and attain greater profits.

Ad Loading...

While obviously a momentous decision with complex implications not entirely outlined at this writing, it is known that GM is aligning their car divisions into two groups: Chevrolet and Pontiac (plus GM of Canada), now dubbed the "small-car group," and Buick, Olds, and Cadillac (B-O-C), dubbed the "larger-car group." The gist is that the individual car divisions will become sales and marketing arms for the predictably stronger and centralized corporate structure. No expected change will be visible to the public for three to five years, since these divisions will be selling, advertising, and holding their dealer contacts. And all dealers will continue to market the same cars that they now offer within their franchise.

The real speculation for immediate white-collar melding comes at the Fisher Body and GM Assembly division staff levels where individual identity may be rapidly lost to the corporate core.

One area to watch in coming months and years will be Lloyd Reuss' moving to head the "small-car" group (he's ex-Buick). There he will inherit: the futuristic Saturn program for GM's 1988 mini-car , Chevrolet's joint venture with Toyota in California, other confirmed import deals bringing in 80-90,000 Suzuki Cultis mini-cars and Isuzu compacts (120,000 R-cars), plus Pontiac's expected confirmation of importing some 50,000 Daewoo Motor (South Korea) small cars (no restrictions here). He faces this at the same time the Department of Commerce expects a continuing trend of fewer sub-compacts; predictions are for 300,000 less in 1984.

We are also not likely to see any significant changes for three to five years, since there is solid commitment to the now-announced C-body cars in mid-'84, the new GM-20 in '85, the new B-bodies in '86-'87, and the new E-body in '86. Somewhere in '88-'89, you might well notice a break from the individual division product continuity of shared body styles and technology. Vehicles might become semi- or totally proprietary to help provide an edge in marketing over sister divisions. Crystal-ballers speculate that Chevy might concentrate on sub-, mini-, and compact cars along with 4WD versions of light trucks and vans. Pontiac might focus on sports and two-seat cars with high performance. Olds may elect to strengthen their diesel and new-power-source alternatives. Buick may opt for turbo-charging, while Cadillac might revert heavily to larger-wheelbase cars in luxury classes.

One thing is certain, and that is that each division will remain strongly competitive with its sister divisions and with "outside" competition. GM insists that this broadscale reorganization will effect economies, and it looks like an excellent bet to succeed, not only providing greater GM profits but better buys within their showrooms. The industry will be watching closely.



Subscribe to Our Newsletter

More Operations

A Cox Fleet technician working on the left with the rear view of a military man saluting a flag on the right
Operations•October 8, 2026

How Fleets Can Recruit and Train Veterans for Technician Roles

Here's how the technician shortage has affected uptime for fleets, and what to do about it.

Read More →
A transparent toll background with the Automotive Fleet logo and Neology logo on top.
Operations•October 5, 2026

Avis Budget Group Deploys Neology Toll Management Technology Across Major Brands

Neology’s neoFleet platform will manage toll transactions and toll-authority operations for vehicles across Avis, Budget, Payless, Budget Truck and Zipcar.

Read More →
Family framed photos and company car in middle
Operations•by Chris Brown•October 2, 2026

Fleet Personal-Use Charges Edge Higher in 2026

Nearly eight in 10 surveyed fleets allow personal use of company vehicles, while just over half of respondents report charging employees for the privilege.

Read More →
Ad Loading...
AF news recap thumbnail
Operations•by Faith Howell•October 2, 2026

The Future of Fleet + What’s Changing Right Now | AF News Recap

Could developments overseas offer a preview of what’s coming for U.S. fleets? This week, we’re looking at the future of AI, autonomy, and electrification, plus Ford Pro’s new certified pre-owned program, smarter vehicle offboarding, and a new way for fleets to manage toll expenses.

Read More →
blue text over top of the top view of cars in a parking lot
Operations•by Faith Howell•October 1, 2026

How to Handle Vehicle Offboarding

What do fleet managers need to do when a driver leaves?

Read More →
Motorq Whitepaper Cover - Fleet Managers Ultimate Playbook
Sponsored•October 1, 2026

Fleet Manager’s Ultimate Playbook: Navigating the New Standard in OEM Connectivity

Rising operating costs, driver safety concerns, and unplanned downtime are putting unprecedented pressure on modern fleets. Discover how fleet managers use embedded OEM connectivity and real-time vehicle data to cut TCO, prevent downtime, and protect drivers without aftermarket telematics hardware.

Read More →
Ad Loading...
A toll road with blue text a top
Operations•by News/Media Release•September 29, 2026

U.S. Bank Adds Verra Mobility Toll Management to Voyager Fleet Platform

The integration allows U.S. Bank Voyager fleet customers to manage toll payments and violations alongside fuel, EV charging and maintenance expenses.

Read More →
An AF news recap thumbnail with blue and white colors
Operations•by Faith Howell•September 28, 2026

ADAS Prevents Crashes. But Repairs Cost More | AF News Recap

ADAS-equipped vehicles may crash less often, but they can cost more when they do. This week, we’re breaking down what that tradeoff means for fleets, plus Subaru’s first Forester Wilderness Hybrid, Nissan’s new e-POWER Rogue, and why Calstart has become Catalyst Mobility.

Read More →
Moventum Fleet management leadership update with Mark Iorillo
Operations•by News/Media Release•September 18, 2026

Moventum Fleet Management Names Mark Iorillo Head of Sales

Iorillo brings nearly 20 years of fleet management and sales experience to the role, including previous positions at Element Fleet Management, CEI, Donlen and Ryder.

Read More →
Ad Loading...
AF news recap thumbnail
Operations•by Faith Howell•September 11, 2026

Fleet Has a Talent Pipeline Problem. What Comes Next? | AF News Recap

Where will fleet’s next generation of leaders come from? This week, we’re looking at the industry’s talent pipeline, what certification can add to a fleet career, how to build an award-worthy track record, and the return of Automotive Fleet’s Personal Use Survey.

Read More →