On the same day that GM announced its disastrous February sales figures, GM's Board of Bystanders OK'ed an executive reshuffle. Those of us expecting the Board to clock the prospect of a fourth year of declining sales, profits and U.S. market share, and then defenestrate GM CEO Rick Wagoner (to float away on his golden parachute) were surprised to discover the current CEO remained in situ. Meanwhile, Chief Financial Officer Fritz Henderson assumed the re-created post of Chief Operating Officer. While pundits aplenty saw this as a Henderson succession play, has Fritz already relieved Rick of command? The Wall Street Journal says "Speaking to reporters yesterday at the Geneva auto show, Mr. Wagoner outlined what his role will be in the auto maker's hierarchy, saying that he will focus on global growth, advanced technologies and environmental lobbying… Mr. Wagoner said he also hopes to at least double his amount of annual visits to China, a fast-growing new market where GM has become well-established. Visiting roughly twice a year in the past 'didn't feel right,' he said." If you ascribe to Ted Turner's Lead, Follow or Get Out of the Way philosophy, it's clear that Rick's now checking out any time he likes. But will he ever leave?
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Great, put another finance guy in charge. Maybe there is a silver lining though. Maybe a tough finance guy will finally realize that GM’s only hope in the US is to go all in on Chevrolet and Cadillac while not spending ANOTHER PENNY supporting the dead man walking Saturn, Buick, Pontiac and GMC brands. Roll Hummer into the Chevrolet lineup as a couple of models. Setting up a whole new dealer network for Hummer was absolutely stupid.
Instead of going to war with the redundant dealers, just starve them off like Isuzu did. Give each one or two obviously badge engineered product with no marketing and no custom sheet-metal and watch them go away.
Saturn gets my vote as the first to do away with. Let ’em have the overpriced quirky Astra to choke on. Even Saturn executives say the Astra is unlikely to sell as well as the Ion did. Wow, that is a low bar. The Ion was a dud. Saturn has never made a profit for GM. Never. It distracted the heritage brands from doing what they needed to do to compete and win.
Forget about targeting “import intenders” and “domestic intenders”. Those old divisions of the marketplace need to be retired in the mind of companies. Make great products and market them brilliantly.
This is a good news. The Titanic orchestra was in desperate need of a new second violinist.
The plan is clear — Wagoner’s goal is to line his golden parachute with frequent flyer miles that he can use for free travel throughout his retirement. Sounds like a solid business plan to me.
I agree that Saturn should be the first to go, but see no indications that Wagoner & company are even thinking about it. In fact, I see more signs that the BPG dealers are being starved. Of course given the incompetence involved, it’s hard to tell what their wishes are. If most of what Saturn has gotten recently had been directed primarily to Buick or Pontiac, their dealers would be in better shape.
Did the Board of Bystanders actually give Rick a nudge, or RR pull a Bill Ford and move out under his own power(less)?
“Instead of going to war with the redundant dealers, just starve them off like Isuzu did. Give each one or two obviously badge engineered product with no marketing and no custom sheet-metal and watch them go away.”
What the hell do we think they’ve been doing the last 20 years?
Just a simple re-arrangement of the deck chairs ON the Titanic.
This is an example of what CAN happen when the “Golden Parachutes” aren’t tied to actual business performance. And they won’t be as long as the board of directors comes from OTHER HUGE companies that embrace this philosophy.
And so it goes…
The list is long.
GW
Enron
Ford
Chrysler
etc.
I hope its true. I have been rooting for Wagoner to get canned since 2004.
This is just about spreading the blame so that his ability to earn and influence doesn’t die soon.
“Speaking to reporters yesterday at the Geneva auto show, Mr. Wagoner outlined what his role will be in the auto maker’s hierarchy, saying that he will focus on global growth, advanced technologies and environmental lobbying…”
Mr. Wagoner will also be checking the toilet paper in the men’s room and making sure all the lights are off when everyone leaves the buildng.
Na na na na
Na na na na
Hey hey hey
Goodbye
Just when I think GM can’t surprise me they manage to top themselves. Detroit auto execs never cease to amaze, and I don’t mean in a good way as in great products.
“Just a simple re-arrangement of the deck chairs ON the Titanic.”
Spot-on.
If this IS true, it probably changes nothing.