Roger B. Smith: The Finance Man Who Robotized GM

Roger B. Smith was the controversial CEO of GM in the 1980s. A finance expert, he pushed for automation and launched Saturn. His tenure is defined by the 'Roger & Me' documentary and a significant decline in market share.

The Visionary Accountant

Roger B. Smith took the helm of General Motors in 1981 with a grand vision: to drag the aging industrial giant into the 21st century. Unlike his predecessors, Smith was a finance man, obsessed with the bottom line and efficiency. He believed that technology, not tradition, would save GM from the rising tide of Japanese imports.

The Robot Revolution

Smith spent nearly $90 billion on revitalization—an amount so large he could have arguably bought Toyota and Nissan instead. He invested heavily in automation, filling factories with state-of-the-art robots. However, the transition was disastrous. Stories emerged of robots painting each other instead of the cars or smashing windshields. While Smith aimed for high-tech efficiency, the quality of the actual cars suffered, leading to an era of "cookie-cutter" vehicles where Buicks, Oldsmobiles, and Pontiacs looked virtually identical.

Saturn and Diversification

His most ambitious project was Saturn, a brand-new car company started from scratch to beat Honda and Toyota at their own game. While Saturn garnered a loyal following, it drained resources from GM's core brands. Smith also diversified wildly, buying Electronic Data Systems (EDS) from Ross Perot and Hughes Aircraft. These moves transformed GM into a conglomerate but distracted it from building great cars.

A Contested Legacy

Smith is perhaps best known to the general public as the elusive subject of Michael Moore's documentary Roger & Me, which criticized him for closing profitable plants in Flint, Michigan. By the time he retired in 1990, GM's market share had plummeted from 46% to 35%, leaving a legacy of brilliant ideas executed with costly clumsiness.

Frequently Asked Questions

Who was Roger B. Smith and what was his impact on General Motors?

<p><strong>Roger Bonham Smith</strong> (1925–2007) served as the Chairman and CEO of <strong>General Motors (GM)</strong> from 1981 to 1990. His tenure was one of the most transformative and controversial periods in GM’s history. Smith attempted to modernize the aging automotive giant through massive investments in <strong>robotics</strong>, the acquisition of technology companies like <strong>Electronic Data Systems (EDS)</strong> and <strong>Hughes Aircraft</strong>, and the creation of the <strong>Saturn</strong> brand. He is often remembered for his efforts to lead GM into the high-tech era, even as the company struggled with declining market share.</p>

Why did Roger B. Smith create the Saturn Corporation?

<p>Roger B. Smith launched <strong>Saturn</strong> in 1985 as a "different kind of car company" to compete directly with Japanese imports. His goal was to create a "clean-sheet" brand that utilized a revolutionary union contract, a non-negotiable pricing structure, and advanced manufacturing techniques. Saturn was Smith’s attempt to prove that <strong>American manufacturing</strong> could produce small, high-quality cars that young US buyers would actually want to buy, bypassing the traditional bureaucratic hurdles of the core GM divisions.</p>

What was Roger B. Smith’s "Automation" vision for GM factories?

<p>In the 1980s, Roger B. Smith spent billions of dollars on factory automation, believing that <strong>industrial robots</strong> would solve GM’s labor costs and quality control issues. He envisioned a "lights-out" factory where machines did most of the assembly. While this was visionary for the time, the early technology was often unreliable, leading to the famous quip that some robots ended up "painting each other" instead of the cars. However, this paved the way for the sophisticated, AI-driven robotics used in 2026 automotive manufacturing.</p>

How did Roger B. Smith change GM through acquisitions like EDS and Hughes?

<p>Smith believed that GM’s future was in <strong>systems engineering</strong> and electronics rather than just metal bending. He acquired Ross Perot’s <strong>Electronic Data Systems (EDS)</strong> in 1984 for $2.5 billion and <strong>Hughes Aircraft</strong> in 1985 for $5 billion. These moves were intended to infuse GM with high-tech software expertise. While the culture clash between GM’s blue-collar roots and EDS’s white-collar tech focus was legendary, these acquisitions eventually led to advancements in vehicle telematics and satellite technology like <strong>OnStar</strong>.</p>

What was the Sunraycer project led by Roger B. Smith?

<p>One of Roger B. Smith’s most forward-thinking projects was the <strong>GM Sunraycer</strong>, a solar-powered vehicle developed in collaboration with AeroVironment and Hughes Aircraft. In 1987, the Sunraycer won the inaugural World Solar Challenge in Australia. This project was not just for show; it served as a laboratory for lightweight materials, high-efficiency motors, and <strong>aerodynamics</strong>, directly influencing the development of the <strong>GM EV1</strong>, the first mass-produced electric car from a major manufacturer.</p>

Why was the documentary "Roger & Me" significant to his legacy?

<p>Roger B. Smith became a household name due to <strong>Michael Moore’s</strong> 1989 documentary <em>Roger & Me</em>. The film chronicled Moore’s unsuccessful attempts to interview Smith about the devastating impact of plant closures in <strong>Flint, Michigan</strong>. The documentary highlighted the human cost of the industrial restructuring Smith oversaw and remains a staple of American business ethics discussions in 2026, illustrating the tension between corporate efficiency and community stability.</p>

How did Roger B. Smith attempt to reorganize General Motors in 1984?

<p>In 1984, Smith implemented a massive structural reorganization of GM, consolidating the five car divisions (Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac) into two groups: <strong>CPC (Chevrolet-Pontiac-Canada)</strong> and <strong>BOC (Buick-Oldsmobile-Cadillac)</strong>. The intent was to streamline engineering and reduce costs, but many critics argue it led to "cookie-cutter" cars where different brands looked nearly identical. This period of <strong>badge engineering</strong> is often cited as a major factor in the decline of brands like Oldsmobile.</p>

What was Roger B. Smith’s role in the GM-Toyota joint venture (NUMMI)?

<p>Recognizing that GM needed to learn Japanese manufacturing secrets, Smith brokered the <strong>NUMMI (New United Motor Manufacturing, Inc.)</strong> joint venture with <strong>Toyota</strong> in 1984. Operating in a former GM plant in Fremont, California, NUMMI taught GM about the <strong>Toyota Production System (TPS)</strong> and "lean manufacturing." This plant later became the site of the first Tesla factory, making Smith’s collaborative experiment a key footnote in the evolution of the modern EV era.</p>

What were Roger B. Smith’s views on the "Global Car" concept?

<p>Smith was a staunch advocate for the <strong>"Global Car"</strong> strategy, attempting to use GM’s international assets (like Opel in Germany and Isuzu in Japan) to create platforms that could be sold worldwide. While the execution was difficult due to varying international regulations and tastes, his push for a unified global engineering platform was a precursor to the <strong>global modular architectures</strong> used by nearly all major automakers in 2026 to achieve economies of scale.</p>

How is Roger B. Smith remembered in the 2026 automotive industry?

<p>In 2026, Roger B. Smith is viewed as a complex visionary who was "right about the future but wrong about the timing." He correctly predicted that <strong>electronics, software, and robotics</strong> would define the car industry, but his implementation was often hampered by 20<sup>th</sup>-century technology and rigid corporate culture. He is remembered as a man who tried to steer a massive ship through a storm of disruption, leaving behind a legacy of technological ambition that finally bore fruit in the digital age of the automobile.</p>