Will the Big Guns Pull the Trigger?

[geozinger]

Since we're nominating folks to run GM on this post, how about The General to run The General (Motors)...

Roger Penske.

Probably as much as anybody else you could mention, he understands the business in ways no other person could. He's done it all.

I agree with the premise in the original post, there was not enough of a loss of value of stocks to get the stockholders to revolt. In some regards, I'm glad that didn't happen, OTOH, it would have been interesting to see what developed.

I will say that I was somewhat disappointed to learn that we won't be getting the Beat, and that there are more CUV's on the way, but who knows when those plans were made.

All I do know now, is that $4/gallon gasoline seems to be the pain point for most people. I've often thought that it was $6/gallon, but we all seem to adjust to whatever price the fuel becomes.

I remember when gasoline first hit $3/gallon, we only drove the Malibu when all four of us had to go somewhere (i.e. church, soccer games, etc.). But we acclimated to the price and then before you know it, all three cars were out of the driveway.

I still think this might happen with $4/gallon gasoline, but maybe not. There certainly wasn't the uproar you see now when gasoline first approached $3/gallon. We essentially just rolled over and took it. This time, we've fought back, in as much as possible, by not driving, but eventually we cannot not drive.

What this ramble boils down to is I don't believe that the folks in the Ren Cen believed that $4/gallon gasoline would be any worse than $3/gallon gasoline. So, they've been full steam ahead with whatever products are on the drawing table. Of course, that would include the new Cruze, so apparently there was a thought given to fuel economy concerns. From today's perspective it can't get here fast enough.

[KingElvis]

Toyota never has these discussions because in japan they don't belong to The Church of the MAGIC CEO.

The groom people from within and promote within to continue the Toyota way of long term, constant improvement.

In the US we have this mythology about 'outsider' individuals boldly taking the reigns and turning things around.

Then these bold individuals discover the absolute minimum amount of time they can make a "u turn" with product is like four years.

Then they find out that automobiles are the most complicated consumer durables... period.

When you're in the auto business you're also in the computer business, the upholstery business, the HVAC business. You've got a dizzying network of supply chains, logistics and supplier issues.

Then you have regulation...then you have overseas competition that's getting subsidized heavily and/or benefiting from the manipulation of currency.

I totally respect Buickman's beef with Rick, but I must also acknowledge that bringing in somebody from Wal Mart or - even worse - the Wall Street vampires - wouldn't be a good idea, because the auto business is really, really, really, really, really complicated and, especially if you think the clock is ticking on GM, there's no time for on-the-job training.

[geozinger]

Originally Posted by KingElvis

Toyota never has these discussions because in japan they don't belong to The Church of the MAGIC CEO.

The groom people from within and promote within to continue the Toyota way of long term, constant improvement.

In the US we have this mythology about 'outsider' individuals boldly taking the reigns and turning things around.

Then these bold individuals discover the absolute minimum amount of time they can make a "u turn" with product is like four years.

Then they find out that automobiles are the most complicated consumer durables... period.

When you're in the auto business you're also in the computer business, the upholstery business, the HVAC business. You've got a dizzying network of supply chains, logistics and supplier issues.

Then you have regulation...then you have overseas competition that's getting subsidized heavily and/or benefiting from the manipulation of currency.

I totally respect Buickman's beef with Rick, but I must also acknowledge that bringing in somebody from Wal Mart or - even worse - the Wall Street vampires - wouldn't be a good idea, because the auto business is really, really, really, really, really complicated and, especially if you think the clock is ticking on GM, there's no time for on-the-job training.

I won't disagree with your assessment of how Toyota grooms their top people, but I would argue there have been "Magic CEO's" in the auto industry, many times - starting with Billy Durant himself. The most recent example would be Carlos Ghosn, but his legacy is yet to be written. Lee Iacocca is another recent example. I had great hopes for Bob Stempel, but no dice...

But recent GM history has shown that using folks from outside of the automotive industry (like Zarrella and co.) was a particularly bad idea. Maybe some of their ideas were good and possibly not implemented well, but your assumptions about a car being the most complicated durable consumer good are totally on target.

I think that someone from outside of the automotive arena (with the exception of an Alan Mulally who comes from an even more competitive and complex industry) would be a mistake worth not repeating. It would be great to see someone from the engineering ranks (again like a Bob Stempel) become CEO and have the authority and vision to move the company forward.

Or maybe an "outside" insider -- like Roger Penske...

[AMcA]

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.

Sure worked at Fiat! Fiat, which GM thought was such a basket case, GM paid $2 billion to disentangle themselves from having to own it. I would say this is evidence that GM's management knows its own limitations . . . .

Now all they need to do is act on that realization, and resign in favor of new leadership.

[PRO_USA1776]

How about MING replace rick and bob? seems to me that MING offers solutions to just about everything. Talk is cheap, time to put up? I'll in fact be your guide to the Detroit Metro area....

[zete]

Here's an ironic scenario. The Union, with the transfer payments due them for various benefits, could use part of that sum to simply buy out GM. In fact, couldn't the Union just use a part of their annual pension dollars and take GM private. Wouldn't that be a kick in the head!? The Union running GM. They'd never be able to go on strike again .

And I don't think it's a crazy idea, either. What's a few billion for the UAW, especially if they take their pension cash as GM ownership instead. Sort of like what happened with the Pittsburgh Penguins when they owed Lemieux more money than they were worth so Lemieux simply got the Penguins.

I always thought it'd be one of those ironic twists of fate.

[rozz]

I vote for Steve Job from Apple. Have anyone seen Apple stock since Steve took over. From $2.00 zoom to $160.00.

[Buickman]

Originally Posted by geozinger

I won't disagree with your assessment of how Toyota grooms their top people, but I would argue there have been "Magic CEO's" in the auto industry, many times - starting with Billy Durant himself. The most recent example would be Carlos Ghosn, but his legacy is yet to be written. Lee Iacocca is another recent example. I had great hopes for Bob Stempel, but no dice...

But recent GM history has shown that using folks from outside of the automotive industry (like Zarrella and co.) was a particularly bad idea. Maybe some of their ideas were good and possibly not implemented well, but your assumptions about a car being the most complicated durable consumer good are totally on target.

I think that someone from outside of the automotive arena (with the exception of an Alan Mulally who comes from an even more competitive and complex industry) would be a mistake worth not repeating. It would be great to see someone from the engineering ranks (again like a Bob Stempel) become CEO and have the authority and vision to move the company forward.

Or maybe an "outside" insider -- like Roger Penske...

Durant's Spirit Is Alive and Well In The "Buickman"
Daniel Durant Merrick
Wednesday, February 1, 2006

Dear Jim:
If you will recall we met several years ago back in Flint when my wife and I had the honor through the efforts of Bob Wilson to attend the anniversary dinner for the Corvette Club. It has been a great pleasure to read about your continued persistence and efforts to return General Motors to greatness; and my great grandfather, Billy Durant, would certainly be proud and honored by your passion and knowledge of the automobile industry. There is no doubt in my mind that if he were alive today, you would be his first candidate for his Board of Directors. Keep up the good work and let me know how I can contribute to your vision for the future of GM.

Sincerely,

Daniel Durant Merrick

[Extreme4x4]

LOL Ming. When I suggested Lutz needed to go, I almost expected to see mobs with torches, outside my house.

I feel the same as you............ he is great when it comes to big horsepower and sporty cars. He seems particularly clueless when it comes to fuel efficient vehicles. When you add his big mouth on top of it (guess it has to be big, to talk around that foot that he regularly has in his mouth)........... he is a pretty big negative for GM.

I like your idea though............ don't just kick him to the curb, but have him work with some "fast and furious," guy............ who understands economy cars. You might also want to invest in a good supply of duct tape........... for Lutz's mouth.

As far as Rick goes, I think he was ok when the company was not in major crisis mode. Not so good when the going got real tough. He just doesn't seem "tough" enough. Alan Mulally is a nice guy, and everyone at Ford likes and respects him. However, he has no problem telling you bluntly how it is, and how it is going to be............. and if you don't like it, the door is over there. He will step on toes to have things happen the way he thinks they need to be.

That is a true leader.

Rick just seems like too much of a yes man, that can't stand up to the board. There needs to be a CEO for GM, who can tell the board they are wrong........... and then present the facts to prove it. I understand that the CEO of GM will never truly be like the CEO of Ford, in that they do not have absolute power (as long as they have the backing of the Ford family)............ but someone with cajones would be an improvement.

[Buickman]

Originally Posted by Extreme4x4

LOL Ming. When I suggested Lutz needed to go, I almost expected to see mobs with torches, outside my house.

I feel the same as you............ he is great when it comes to big horsepower and sporty cars. He seems particularly clueless when it comes to fuel efficient vehicles. When you add his big mouth on top of it (guess it has to be big, to talk around that foot that he regularly has in his mouth)........... he is a pretty big negative for GM.

I like your idea though............ don't just kick him to the curb, but have him work with some "fast and furious," guy............ who understands economy cars. You might also want to invest in a good supply of duct tape........... for Lutz's mouth.

As far as Rick goes, I think he was ok when the company was not in major crisis mode. Not so good when the going got real tough. He just doesn't seem "tough" enough. Alan Mulally is a nice guy, and everyone at Ford likes and respects him. However, he has no problem telling you bluntly how it is, and how it is going to be............. and if you don't like it, the door is over there. He will step on toes to have things happen the way he thinks they need to be.

That is a true leader.

Rick just seems like too much of a yes man, that can't stand up to the board. There needs to be a CEO for GM, who can tell the board they are wrong........... and then present the facts to prove it. I understand that the CEO of GM will never truly be like the CEO of Ford, in that they do not have absolute power (as long as they have the backing of the Ford family)............ but someone with cajones would be an improvement.

man I appreciate your input and passion but must say you're off base there bro. RIR doesn't fear the Board of Bystanders, he's their puppet, strings and all. they (as in banksters) put him in place and that's why they support his worthless butt.

[nota]

Originally Posted by KingElvis

Toyota never has these discussions because in japan they don't belong to The Church of the MAGIC CEO.

The groom people from within and promote within to continue the Toyota way of long term, constant improvement.

In the US we have this mythology about 'outsider' individuals boldly taking the reigns and turning things around.

Saw this smug comment below when surfing just now. So what the hell I'll put it up, to nobody's amusement

http://www.japanautoauctions.com/blog/?p=10

[Buickman]

Wagoner, Henderson, LaNeve et al are GUILTY of MURDER.

for their intentional decimation of GM's US production/market share and the elimination of health care for salaried retirees, they are totally at fault for the future death of loyal retirees unable or, for whatever reason, unwilling, to properly insure their coverage, or being uninsurable. AGAIN, GUILTY OF MURDER...IN THE FIRST DEGREE!!!

[steve333]

Originally Posted by Ming

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.

I actually thought the same thing. Then I read a BusinessWeek article that had an engineer or someone in GM say that 2 years ago Lutz ordered them to go small, including the DTS replacement. He told them its trending this way and its going to last. Funny how Lutz doesnt sound that way outside of GM.

[wildgoosechase]

Too bad Lee Iacocca is under contract with Chrysler, he did it once, he can do it again....

[steinravnik]

Originally Posted by tgagneguam

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.

What GM needs is someone who can figure out how to make products that connect with the public. Look at Apple and their success with Ipods. GM needs cars that are as desirable as an Ipod. GM cars should be regarded as hip, modern, efficient, and stylish. These are not words that come to mind when I think of Cobalt, Astra, or anything GM produces. GM is a company run by a bunch of geezers and is about as hip as your grandfather.