Q&A:GM’s Mark LaNeve

[nadepalma]

Source: http://www.thecarconnection.com/Indu...193.A8664.html

Q&A: GM’s Mark LaNeve
GM is “in the fight of our lives.”



He grew up in a tough steel town, and spent his college years as a first-string football player. But for Mark LaNeve, the fight is just beginning. But for a brief stint running Volvo Cars North America, LaNeve has spent his entire career at General Motors, including a three-year stint as head of the Cadillac division.

Caddy's comeback is one of the few real success stories for GM lately, and the desperately hoped-for sign that other GM divisions might have the chance to turn things around, as well. In a not entirely unexpected announcement, the giant automaker says it will effectively consolidate three of its most "troubled" brands, Buick, Pontiac and GMC. That's just part of a grand restructuring designed to slash costs and rebuild market share. What else is in store? TheCarConnection's publisher, Paul A. Eisenstein, had this conversation with GM's blunt and hard-charging new director of sales, service and marketing operations inNorth America.

TCC: GM suffered a two-point decline in market share during the first four months of 2005, yet some analysts warn even bigger losses are likely. Some suggest we could see the U.S. market start to look like Europe's, where even the biggest brands hold barely 15 percent. Do you agree?

LaNeve: I don't like hearing that, because as the market leader, we have the most to lose. But the fact is, in some ways, our (foreign-owned) competitors have advantages over us when competing here. When they enter new segments, it's very difficult to keep them from gaining share. On the other hand, whenever we enter segments, we gain share. Cadillac gained 70,000 units in sales when it entered two sport-utility segments. This will sort itself out over time. There's no natural inertia that says we have to slip to 20 percent over time. Executing new products well, we'll gain share.

TCC: So is there a product in the portfolio that could turn things around for GM as a whole, much the way the Escalade or CTS helped revive Cadillac?

LaNeve: People keep looking for a silver bullet that will reverse GM's fortunes, but I can't think of one. This has to be done over time with good products that will rebuild brand. Over time, strong brands win, weak brands lose.

TCC: Okay, so a few months ago, Vice Chairman Bob Lutz said several brands were "damaged," and though he backed down from that statement, you admitted Buick, Pontiac and GMC are "troubled." But you seem to have an alternative solution to simply shutting one or more of them down.

LaNeve: We still think eight brands is better than seven, (but)…we're going to run it (Pontiac/Buick/GMC) like one division. To be honest, this isn't entirely new news. We've been doing this (quietly), and now we're beginning to talk about it. Half the dealers already handle all three brands, and 90 percent have two. The goal is 100 percent.

TCC: Will you cut back on the number of products the consolidated division sells compared to when they operated independently?

LaNeve: Yes, but three really strong Buicks would be a better business proposition than the (larger) lineup we have today. And eventually, if we're successful, the BPG channel might have more products than today. If light trucks remain strong, for example, we might add even more models under the GMC nameplate.

TCC: GM just scored a big coup in the oft-quoted J.D. Power Initial Quality Survey. You nearly matched Toyota/Lexus/Scion in the number of segments you led, and swept with the highest-quality plants in North America.

LaNeve: That sends a really important message to the market.

See more: http://www.thecarconnection.com/Indu...193.A8664.html

[SSrevolution]

This guy is gonna be great for GM. Everything he says is all pro no con. He proved with his work at Caddy that he is the man.

BTW- how is GMC a troubled brand? They sell the 2nd most units of any brand besides Chevy.

[surferdude00711]

I wanna see what a GMC-Buick-Pontiac dealer looks like in 10 years from now more than, well, anything. Am I the only one excitited in here? Hello; how great will it be! ! Imagine; a complete line of sedan coupe and vert Velites, a Zeta GTO, kappa G4, solstice coupe and verts GXP, all with 6-speed autos AND DOD; JOYGASM.

[SSrevolution]

Originally Posted by surferdude00711

I wanna see what a GMC-Buick-Pontiac dealer looks like in 10 years from now more than, well, anything. Am I the only one excitited in here? Hello; how great will it be!

That should be good. I think there should be Chevy truck and GMC dealers combined. Thats just me.

[awalbert88]

Originally Posted by surferdude00711

I wanna see what a GMC-Buick-Pontiac dealer looks like in 10 years from now more than, well, anything. Am I the only one excitited in here? Hello; how great will it be! ! Imagine; a complete line of sedan coupe and vert Velites, a Zeta GTO, kappa G4, solstice coupe and verts GXP, all with 6-speed autos AND DOD; JOYGASM.

Yes, and the rest of the world will have 7 and 8-speed autos and hybrids.

If you meant those products will be great in two or three years, then yes that's true. But a decade from now, that's not going to be very impressive anymore.

[spartacus1224]

Poeple on this board keep on mentioning GXP as Pontiacs performance tag, what the hell?? Where did you get it from?? Wasn't the Solstice going to be GT and not GXP?? The only car that is GXP is the Grand Prix.

I hope they don't put GXP everywhere on pontiacs, it just sounds horrible.
Chevy = SS
Cadillac = V-series
Dodge = SRT
Ford = SVT
Benz = AMG
Acura = Type S
Nissan = Type R
Pontiac = GXP??????
Sounds bad, very bad. Saturn's Redline sounds better. It's too cheasy.....

[Buickman]

Watch for soon to be announced theory on GM. Better than a Tom Clancy novel, this seemingly far fetched hypothsis will explain the true reasons for GM. Believe the company line, or consider something some may describe as far fetched.

[TransAmTrance]

Originally Posted by spartacus1224

Poeple on this board keep on mentioning GXP as Pontiacs performance tag, what the hell?? Where did you get it from?? Wasn't the Solstice going to be GT and not GXP?? The only car that is GXP is the Grand Prix.

I hope they don't put GXP everywhere on pontiacs, it just sounds horrible.
Chevy = SS
Cadillac = V-series
Dodge = SRT
Ford = SVT
Benz = AMG
Acura = Type S
Nissan = Type R
Pontiac = GXP??????
Sounds bad, very bad. Saturn's Redline sounds better. It's too cheasy.....

hmm someone missed the last year of their life, bonneville was created the first pontiac gxp with a n* 4.6... GTP: top of the line model (se, gt, gtp) GXP: high performance tag, even tho i think they should try to put a little more HIGH in "high performance"

[spartacus1224]

Originally Posted by TransAmTrance

hmm someone missed the last year of their life, bonneville was created the first pontiac gxp with a n* 4.6... GTP: top of the line model (se, gt, gtp) GXP: high performance tag, even tho i think they should try to put a little more HIGH in "high performance"

Yes, I know the bonnie had it, and it's now gone. Currently, only the GP has GXP on it. Also, there was a thread last year about this tag as only a "possibilty" for pontiac. Then, there was another thread about the Solstice GT (Not GXP). Maybe the GXP tag is for pontiac V8s (Bonnie had the N* 4.6 and the Prix has the 5.3L) excluding the GTO.

If there was any news that GXP is official, tell me where it is so that I can read it.

Also, what does GXP stand for??

[jbartley]

I think i read in the pontiac magazine, that GXP was the code name for the bonneville platform, and that's where they got the name...

[goblue1999]

Originally Posted by awalbert88

Yes, and the rest of the world will have 7 and 8-speed autos and hybrids.

If you meant those products will be great in two or three years, then yes that's true. But a decade from now, that's not going to be very impressive anymore.

Please explain to me the economics of 7 and 8 speed trannies..........

[bksavs]

7 and 8 speed trannies? sounds like Spinal tap to me... you know... "but these go to 11". Cars and light trucks don't need that many gears. The transmissions will always be shifting.

[1BadPig]

Well, let's see... more gears means more speed, right?

[fatratchevy]

There is no reason for a 7-8 speed auto, even a 6 speed auto is alittle over the top. There is absolutely no reason, beyond the "well the competition has it" b.s., to have that many gears in an automatic transmission, please stop thinking that the more gears you have the better the transmission is. . . 6 speed auto's are enough. . .

I like this guy and Lutz, I think both of them are great for GM. Both straight talk'n, no B.S., this is how it is kinda guys. . . Both are shaking things up at GM and that's what needs to happen, GM needs to get the cobwebs kicked out and these are the guys to do it. . .IMO.

[mikest00]

Originally Posted by fatratchevy

There is no reason for a 7-8 speed auto, even a 6 speed auto is alittle over the top. There is absolutely no reason, beyond the "well the competition has it" b.s., to have that many gears in an automatic transmission, please stop thinking that the more gears you have the better the transmission is. . . 6 speed auto's are enough. . .

I like this guy and Lutz, I think both of them are great for GM. Both straight talk'n, no B.S., this is how it is kinda guys. . . Both are shaking things up at GM and that's what needs to happen, GM needs to get the cobwebs kicked out and these are the guys to do it. . .IMO.

Enough said!