Will the Big Guns Pull the Trigger?

[Buickman]

Edward Lapham
Automotive News
July 17, 2008 - 3:57 pm ET


The folks in General Motors shareholder relations must be breathing a sigh of relief that the price of GM stock has bounced up a little with the rest of the market.

When the share price was in free fall, a lot of normally passive investors undoubtedly got nervous and wondered what they could do about it. Some probably even thought about getting organized and revolting against management.

Apparently, the stock didn't sink low enough to start a revolution.

For some time, there has been opposition to management from shareholders such as Jim Dollinger, a Buick salesman from Flint, Mich., who has been an antagonistic critic of GM management, especially CEO Rick Wagoner.

Dollinger has attended the past couple of GM annual meetings and loudly voiced his discontent. Between annual meetings, he tries to generate support though his Web site: www.generalwatch.com.

But without a big shareholder like Kirk Kerkorian to act as champion and lead the charge -- and without the support of the institutional investors that control the board of directors -- shareholder movements usually don't go far.

That's perplexing for smaller investors who have their retirement nest eggs built with auto stocks. Especially hard hit this time are GM employees and retirees who have had their benefits cut and seen the value of their GM stock evaporate.

full text at http://www.autonews.com/article/2008...953044993/1125

[rozz]

Rick Wagoner should do the right thing and step down. I think it is shameful to stay when the company is going down hill every year.

[Ambalanche]

OK so Rick goes, Who would you replace him with and why? This is what I haven't heard anything about.

[ByTheLake]

But without a big shareholder like Kirk Kerkorian to act as champion and lead the charge -- and without the support of the institutional investors that control the board of directors -- shareholder movements usually don't go far.

The stock price is certainly an issue, but If things are that dire for the small shareholder, why wouldn't institutional investors be equally concerned, if not more so?

[Ming]

Originally Posted by Ambalanche

OK so Rick goes, Who would you replace him with and why? This is what I haven't heard anything about.

So now you have to be an expert in industry and business and all possible candidates out there to be justified in critcizing Mr. Wagoner. Wow, Nice Guy Rick really is teflon...!

Before even waiting for rozz' answer, you had your own. "There is no one to replace him with". I've heard of company loyalty before, but that's taking it to a new level.

Loyalty to GM does not mean putting tape over your mouth when there have been serious management missteps and the company is on the financial brink.

Actually, though, rather than Rick, I'll shock everyone and say replace Bob Lutz. Or have him defer to a much younger, tech-crazed modern car geek who loves small 4-cylinder powered cars when it comes to that growing part of GM's portfolio. Because Bob's off-the-cuff remarks show he has no clue, or just doesn't want to see car culture move in a direction that he's unfamiliar with (or that he thinks won't be profitable enough). "The customer doesn't know what they want - until we send them a flyer for a shiny new 8-passenger $40,000 crossover" - that kind of garbage.

Seems to me that Rick has done a decent - if not stellar - job of managing the money where he can with all of GM's many challenges, such as the UAW (I'm sure Buickman could correct me there), given what GM has on lots to sell to customers. He's not the "product czar", and product focus is behind much of GM's woes. Bob should have been "styling czar" because that's where his strength has been.

Bob Lutz' apparent disdain for small cars at news conferences is behind some of their market missteps, I'm sure of it (well, as sure as an armchair quarterback behind his keyboard can be ). Let Lutz continue to manage the big cars and big horsepower that he apparently loves so much, or 1960's roadster-alikes such as the Solstice. Let him live in GM's past where gas was cheap and SUV profits were huge, and give him a protégé who is eager (not foot-dragging with a fake smile) to attack GM's future beyond a limited number of $40,000 Volts.

[Buickman]

we cover Sam's position in Tribune. give him the reins and see our capital position multiply. personally, I'm interested in effective, productive, brand enhancing, profitable marketing. put me in coach, I'm ready to play...today...center field.

[tgagneguam]

Originally Posted by Ambalanche

OK so Rick goes, Who would you replace him with and why? This is what I haven't heard anything about.

There actually is management talent outside of General Motors. While I don't carry the resumes of Fortune 500 managers in my back pocket, Alan Mulally readily demonstrates how you can find people with success in their history who might do a better job at managing an automaker than simply searching GM's shallow talent pool for the next leader.

Bill Ford was smart enough and courageous enough to acknowledge that he was out of his league. He was able to swallow his pride and find a more suitable leader for Ford. That was admirable. Wagoner hasn't really demonstrated he has what it takes, yet he persists in mismanaging GM. Admirable? Not so much.

Originally Posted by Ming

...Actually, though, rather than Rick, I'll shock everyone and say Replace Bob Lutz...

As an indirect shareholder in GM, I'll pass. That is not a good idea.

[RamJet502]

If they replace the brass at GM, they should look for someone outside the automotive industry who knows how to run a successful business.

[tgagneguam]

Originally Posted by Buickman

...I'm interested in effective, productive, brand enhancing, profitable marketing...

D'Accord! Cut-and-run, Rick's turnaround plan du jour, hasn't panned out so well. I'd like to see some good old fashioned American competitiveness return to GM. I'd like to see GM grab arms and stand opposed to Japanese and European brands for once.

[throwback]

Originally Posted by Ming

Actually, though, rather than Rick, I'll shock everyone and say Replace Bob Lutz. Or have him defer to a much younger, tech-crazed modern car geek who loves small 4-cylinder powered cars when it comes to that growing part of GM's portfolio. Because Bob's off-the-cuff remarks show he has no clue, or just doesn't want to see car culture move in a direction that he's unfamiliar with.

You are not shocking me. Lutz just does not get small cars. I think he really believes most people still want SUVs. I say replace him with Carl Peter-Foster the GM Europe head. He is someone who clearly understands product and knows cars. GM can not survive by being a truck company, the days of $2.50 a gallon gas are long gone. Once people buy a more fuel effecient vehicle, it is very hard to replace that with one that gets worse gas mileage. Think about what you drive now, would you replace your current ride with one that gets 5 mpg less if you where in the market now?

[Buickman]

think outside the box and look outside the fence.

internally we have good people like White, Hresko, and Wallace. but we need a new direction for the long range view, as opposed to operationally effective managers.

GET SMART...GET SAM!

gotta love this Harley ridin', people luvin' leader.

[Ming]

Reminded me of Jim Zeimer.

[Greg Burr]

Originally Posted by RamJet502

If they replace the brass at GM, they should look for someone outside the automotive industry who knows how to run a successful business.

That's what Ford did.

[fp115]

Originally Posted by Ming

Actually, though, rather than Rick, I'll shock everyone and say replace Bob Lutz. Or have him defer to a much younger, tech-crazed modern car geek who loves small 4-cylinder powered cars when it comes to that growing part of GM's portfolio. Because Bob's off-the-cuff remarks show he has no clue, or just doesn't want to see car culture move in a direction that he's unfamiliar with (or that he thinks won't be profitable enough). "The customer doesn't know what they want - until we send them a flyer for a shiny new 8-passenger $40,000 crossover" - that kind of garbage.

This makes more sense than the Red Ink Rick crap around here.

Good Post

[ronald mcretard]

How about Bill Gates... maybe he's already tired of philanthropizing...