GM'S Rick Wagoner: We can do it

[tgagneguam]

GM'S Rick Wagoner: We can do it

'The future of the company is held in balance by the actions that we all take in a relatively short period of time.'

Bill Vlasic and Brett Clanton / The Detroit News

DETROIT -- Wall Street is trashing his stock. Analysts are predicting a bankruptcy. Critics in the media say he should be fired as chairman of General Motors Corp.

But Rick Wagoner is not about to give up the wheel at GM -- or deviate from the plan he believes can restore it to greatness.

"I'm doing what I'm doing because I love General Motors," Wagoner said Tuesday. "I think it's very important what we're doing in the company, and I think I'm by far the most qualified person to do it."

Wagoner occupies the hottest seat in corporate America, a 53-year-old GM "lifer" under fire for decades of decline by the world's largest carmaker.

Yet as he presides over the most dramatic restructuring in GM history, Wagoner has neither the time nor patience for outsiders who say GM is destined to fail.

"It's easy to stand back and come up with great ideas, OK?" he said. "It's not so easy to do this stuff."

In an interview with The Detroit News on Tuesday, Wagoner said that the massive overhaul of GM operations will produce markedly improved results in 2007.

He also expressed confidence that a costly strike will be avoided at bankrupt parts maker Delphi Corp., and that many GM and Delphi hourly workers will take early retirements or buyouts as the automaker downsizes.

Wagoner admitted that investors, employees and other stakeholders have a right to be nervous about GM's future. Last year's $10.6 billion loss, combined with GM's shrinking share of the U.S. new-vehicle market, have spurred speculation that GM may yet have to follow Delphi into bankruptcy.

And while GM's board on Monday made a public show of support for Wagoner, he remains in the crosshairs of critics calling for his ouster.

"There's blood in the water, and a lot of people are looking to tear (Wagoner) apart," said George Magliano, an industry analyst with Global Insight in New York.

Wagoner is keenly aware of what he calls the "assaults" on his performance by media outlets such as The Wall Street Journal. "That can wear on you," he said.

Tough talk isn't enough

But his low-key manner fades quickly at suggestions that he is not tough enough to tackle hard issues involving GM, Delphi and the United Auto Workers.

"It's easy to talk tough," he said. "But I would invite anybody in who says you should play hard-nosed with the union. Yeah, you come sit in this chair the third week into a strike and see how that feels."

If GM is the beleaguered giant of the U.S. auto industry, Wagoner is its face, the personification of a proud but troubled company determined to come back despite huge odds stacked against it.

Sitting in his shirtsleeves at a conference table in his Renaissance Center office, Wagoner ticked off the milestones so far on GM's road to recovery: health care cost cuts for salaried and hourly workers, a dozen plant closings, the planned elimination of 30,000 factory jobs and the sale of a controlling interest in GM's prized finance division.

He is particularly pleased with the agreement reached last month by the UAW that will offer buyouts ranging from $35,000 to $140,000 to every one of GM's 113,000 hourly employees and another 13,000 workers at Delphi.

"What could be better?" Wagoner said. "We have a number of people who would like to retire. We provide them a reasonable, but not excessive incentive to retire. It's not a comprehensive solution, but it's a very important piece of the puzzle."

Buying out older workers, he said, is critical to opening GM jobs for workers who may be displaced in Delphi's reorganization plan. Beyond that, the buyouts can create space for idled workers in the controversial "jobs bank" program, which provides full pay and benefits for laid-off workers.

More importantly, the attrition program was negotiated and accepted by the UAW. While Wagoner has come under fierce attack from outside the company, he has gained an unusual measure of respect from the union's leadership.

Full article

[tgagneguam]

It's interesting to note that there's no real mention of the primary mechanism for a GM turnaround: great cars and trucks.

I hope Wagoner proves the skeptics-which includes me-wrong.

[Quickening]

Let us hope the new SUV's and Saturn can do it.

[Globalist]

"It's easy to stand back and come up with great ideas, OK?" he said. "It's not so easy to do this stuff."

"It's easy to talk tough," he said. "But I would invite anybody in who says you should play hard-nosed with the union. Yeah, you come sit in this chair the third week into a strike and see how that feels."

That's what haunts any GM CEO. Actual and future ones.

Wagoner seems to navigate very well through the UAW-Delphi tides.
If he can implement all the recent initiatives without a strike, it will be a great achievment.

[Globalist]

GM'S Rick Wagoner: We can do it

Of course GM can do it, because the competition already did it.

Don't remember who already said that?

[mikesright]

Listen to Peter Delorenzo, he says GM's new cars and trucks are going to be the salvation for GM! He's seen them and he likes them! Combine that with the fact he's ensured GM's financial liquidity for the moment with the sales of Suzuki, Subaru, and Izuzu, with GMAC! Include the fact he is the best negotiator of union deals, and he will assure his tenure. Look for financial results to improve shortly, the GMT-900's are the main proffit-driver, and they are exceeding expectations. Let the man focus and do his job. He and Lutz will improve the cars very quickly, just look at the job they have done in the past few years, from Cavalier to Cobalt, and from Park Avenue to Lucerne.

[mikmak]

Originally Posted by Globalist

Of course GM can do it, because the competition already did it.

Don't remember who already said that?

Tom Phillips (Ex Mitsubishi Motors Australia CEO)? Sorry Tom. You did a great job with what you had, but a Turd (galant) is still a Turd (Magna) no matter how much you polish it. Its Australias Taurus.

[tosil]

Lutz said it himself.... companies achieve better results while under pressure. Just look at Nissan, they were in the brink of distruction, so better product saved them. I think they can do it...

[camaro_freak]

Originally Posted by tosil

Lutz said it himself.... companies achieve better results while under pressure. Just look at Nissan, they were in the brink of distruction, so better product saved them. I think they can do it...

it is pathetic that GM only starts to produce quality in product and design when they have no choice. Why did they become so complacent? Ol' Ricker should answer that question.

I'd like GM to just come out and admit they built crappy quality and crappy designed cars in the past and flat out apologize for it. Then explain the strides taken in both areas and ask Americans to give them another chance. Let them prove they are still the best value in the market today. Come in for a test drive,etc,etc.

That would take balls and I'd stand up for them for doing so ...

[Buickman]

GM actually did just that not long ago with their ill-fated "Road to Redemption" ad campaign. It proved futile.

Buickman

[tgagneguam]

Originally Posted by camaro_freak

it is pathetic that GM only starts to produce quality in product and design when they have no choice....

I heard this quip in the 60 Minutes feature on GM last Sunday, and I thought it was pretty lame. And it concerned me. I worry that once the turnaround takes hold - if it takes hold - GM will grow comfortable again and fall into the same pattern that we experienced for the last two decades. Product investment always takes center stage, in good times and bad. I guess if you don't understand your history (e.g., why you allowed your products to become so completely pathetic), you're destined to repeat it.

And some companies, like BMW, seem to always churn out great products. I guess that that's why they're consistently profitable, too. As one example, the last 3-series was amazing, and it dominated its segment; it was everyone's bogey. Yet somehow the new 3-series is that much more amazing and will presumably continue to lead the segment. BMW didn't see fit to rest on its laurels.

[tgagneguam]

Originally Posted by Globalist

That's what haunts any GM CEO. Actual and future ones.

Wagoner seems to navigate very well through the UAW-Delphi tides.
If he can implement all the recent initiatives without a strike, it will be a great achievment.

Agreed.

As I think about it more and more, I slowly shed by knee-jerk reaction that Wagoner is a complete buffoon and will let the UAW walk all over him in the current three-way negotiations between his company, Delphi, and the UAW. It does take a certain special someone to be able to make some headway against an angry Union and Delphi, which seems to be headed by a man who the more I follow the story seems hellbent on pressing the Union for an all out strike. That seems to be the easy way out... and I think all three will suffer greatly if that happens. Wagoner seems aware of that and has somehow steered GM well thus far.

That being said, I still don't think that Wagoner is a thoroughly brilliant man who some have deemed the brightest CEO in America today. I think that that's definitely a stretch.

[GM-10]

Originally Posted by Buickman

GM actually did just that not long ago with their ill-fated "Road to Redemption" ad campaign. It proved futile.

Buickman

I'm not sure...how do you feel about Wagoner???

[1BadPig]

Originally Posted by tgagneguam

GM'S Rick Wagoner: We can do it

Why do I always automatically think of Rob Schnider's character in the Water Boy when I hear this?

[Buickman]

Originally Posted by GM-10

I'm not sure...how do you feel about Wagoner???

Gee...give me some time to consider that one.