Merkinball
Deity
Wrong. First, they manipulated demand through advertising. Second, their main mistake was believing that the market changed to suit GM rather than that GM had to change to respond to the market.
It's not like there was anyone anywhere who did not know that oil prices would go up at some point. And it's not like there was anyone anywhere who did not know that when the oil prices did go up that sales of gas guzzlers would tank. GM management was just too stupid and incompetent to manage the company for a market that acted like a market, instead of one that they could dictate terms to.
It's hard to respond to market pressures when your cars cost $3000 more simply because you have to cower before a union.