After GM racked-up a $39b third quarter deficit, BusinessWeek (BW) wants to know if GM CEO Rick Wagoner is finally ready to unfurl his golden, bankruptcy-proof parachute. Their answer: maybe. Clocking the "muted" reaction to GM's latest losses, they attribute Rick's survival to the loyalty of GM's employees and board of bystanders directors. However, BW also notes the status may no longer be quo should the fourth quarter reveal "any more nasty surprises." Perhaps they should also question the longevity of CFO Fritz Henderson. Fritz reacted to GM's arterial spray by dropping such bon mots as "the economic pace and the market are certainly … something we need to be cognizant of." Up with this insight stockholders should put? What of "we're not signaling [their seasonally adjusted selling rate is] worsening or anything, but today it's certainly below trend"? This after GM missed their mark by about a million vehicles in October. In any case, it looks like the mainstream media is– once again– beginning to smell blood in the water.
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“the economic pace and the market are certainly … something we need to be cognizant of.”
God! “On the Fritz” Henderson does talk some rubbish! Never has a quote been so devoid of substance! Unless you count my TTAC posts!
I really thought, that GM was turning a corner and that maybe they could survive this period of their corporate life, learn from it and move on. Alas, I could be waiting a little longer!
Like I said in earlier posts, Mr Wagoner will walk away from this mess, scot free, whilst the rank and file of GM will have to deal with this economic tsunami. GM need a total overhaul of corporate culture and fast. They need management who will take charge and show that they mean business.
No more soundbites, no more excuses, now is the time for results. Where are the Lee Iaoccocas of the world gone……?
“Where are the Lee Iaoccocas of the world gone……?”
To Las Vegas …. sorry, I just couldn’t resist.
“Up with this insight stockholders should put?”
It is my understanding that the only GM stockholders left are the ones who invest as a pure gamble. The investors who really care about proper management probably sold their shares long ago.
Mr jthorner,
Sorry, I don’t get that joke?
Many of GMs cars feel “big” to me when driving them. I think Rick Wagoner may be the reason.
I read a while back that he likes to drive cars as they are being developed and gives feedback to the designers.
Rick is a tall guy, I think around 6’4″. I’m 5’9″ and this could explain why many of the General’s products feel (to me) like a suit that is 2 sizes too big.
Rick, it’s time to go. A $39 billion loss is a disaster – that’s a turd you can’t polish. Corporate culture being what it is, means another tall guy will probably take his place….hopefully that guy will let the designers do their work without any “constructive criticism”.
Sorry, I don’t get that joke?
Could be Capn’ Kirk and his crew. Saw the coming supernova from the bridge of the Starship GM and beamed down to Vegas!!!
The economy in the US is taking an ass-whupping right now, so count on GM results to get worse before they get better.
In fact, success near-term for GM might mean getting worse more slowly than the competition. I certainly think that, product-wise, they have some brighter stars in their firmament than do their domestic rivals. Of course, being the best of a bad lot is no guarantee of survival.
They would do themselves a huge favour if they could cut a chunk of the chaff out of their lineup. That brings us back to the bloated dealer network argument of course, as a good number of the excess models are there to give the dealers something to sell.
They would do themselves a huge favour if they could cut a chunk of the chaff out of their lineup
They can do that under the new UAW contract, can’t they? If so, one of these days RW is going to push the nuclear button and close plants all over the place in a last ditched effort to save GMNA?
Two of the biggest financial companies in the US canned their CEOs last week because of smaller loses than GM’s. That Rabid Rick didn’t get fired from the General long ago shows how inured to failure they are.
Doomed!
Didn’t the SEC let GM put off booking the cost of the buy-outs also? Won’t those be due in a few years? tick-tick-tick…
Wait till the media realizes the recent months sales upswing “came in with the fleet”. Opinion.
Lounging Lido may have been better at surfing the waves of fortune at Chrysler than others but he left behind the same “Culture of Chaos” that he found. No solutions, just faster dancin’.
I do not think what I told you is what you thought i did not mean to imply that you meant.
That makes about as much sense. How can a business concern book a 39 billion dollar loss and keep afloat? Are the side companies going to take IOUs from GM?
Ya know, I see these “Where are all the Lee Iaoccocas” comment, and I can only think of one thing. I was reading an excerpt of his new book, and he basically said it is the job of the US government to bail out Chrysler. Yeah, right.
1st, the mainstream media, especially the auto pundits should have been raving for years for the ejection of the board of no-nothings and Wagoner.
loyality, where else you going to make that much money for not knowing anything about your job.
Ricks the captain,he goes down with the ship.As Katie P points out, if walks now he unscathed.I wish I had a lifeboat.