Rumor has it Rick's toast. Obviously, there's no way to officially confirm GM CEO Rick Wagoner's termination by GM's Board of Bystanders. But I want to state here, and for the record, that TTAC flagged Rick Wagoner as the wrong man at the wrong time in the wrong job from the moment we began our industry coverage. To those who say Wagoner made the best of a bad job, I call bullshit. The General Motors Death Watch and GM's financial record offer incontrovertible proof of Wagoner's ongoing managerial malfeasance. If nothing else, consider the fact that his administration relentlessly pursued a "we can cut our way to prosperity" philosophy. In this Wagoner has been deeply misguided. And misguiding. The CEO's failure to face the facts, both within GM and without, identify him for all time as a weak, ineffectual leader. Wagoner's lack of accountability– both personally and professionally– stands as an utter condemnation of GM's Board of Directors and America's "old school" corporate culture. Wagoner has pocketed over $100m and secured a bankruptcy-proof pension for himself and his heirs. His real legacy will be the psychological despair and economic misfortune of the one million-plus people whose livelihoods depend– depended– on General Motors' health and vitality. I'm sure Wagoner is a nice man, personally. I've never met a CEO of a major corporation who wasn't (and yes, I've met a few). But it's good riddance to bad rubbish.
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I don’t see how you can blame Wagoner. The guy’s only had 1/12th of the entire history of General Motors to begin to right the ship! And it was the worst 12th! Surely we can give him another eight sixteen twenty-four years?
I’m sure Wagoner is a nice man, personally.
Maybe he is too nice a guy! A CEO needs to be a tough hombre (or whatever the frmale equivelent of Hombre is!). If he is toast, who will replace him? Lutz, Fritz? Maybe a BK filing is around the corner and maybe Rick won’t do it. I am thinking here of Rick’s reply to Buzz on the subject of BK! So, Rick has to step aside. Or not.
If the W.A.R. is true (and in some ways I hope it is as honour should have demanded his resignation some time ago) then I hope this shake up allows somebody to come in from the outside and try to salvage the ship.
Any thoughts? I recommend anyone with talent from the following companies: Southwest Airlines, Apple, RIM, Caterpillar, Harley-Davidson or even Kodak. Companies that have pulled themselves up from near-death or have always remained on top.
I hate Rick Wagoner. I have a deep contempt for him ever since earlier in the dacade, as I was turned off by his poor management and how he was focusing everything the General had on SUVs and retaining a “macho” image.
However, another part of me can’t blame him. Although he has made some pretty stupid decisions, overall, what is happening to the General today is the indirect result of Roger Smith’s mismanagement back in the 1980s. He fucked The General up royally, and the fact of the matter is that GM should have gone down in the mid 90s. The SUV boom just delayed the inevitable. Those monster profits were built on a very shaky foundation.
However, if he leaves, I will really appreciate it. He did more harm than good.
Wagoner failed in that he didn’t try ANYTHING. The situation called for something drastic, and he never stepped up.
If true (and I hope it is), then Christmas came early this year!!!!!!
Somehow I think he’s too stubborn to resign.
The moral within GM is bad, this would pick it up.
Hopefully the door hits his ass on the way out.
He’s still hoping he can turn it around and he won’t be the guy who gets blamed for killing GM. Probably hoping for a government handout to keep the lights on.
It doesn’t matter now. Damage is done. All that’s left is the death rattle.
hang about! didn’t you predict the exit of mine hairy waggonear[sic] a couple weeks ago? didn’t happen. the bystanders stood by. i expect a repeat & then again …
Mr. Farago,
If all GM did was hire nice guys, they’d have a bunch of nice guys who don’t know how to do anything. Oh wait….
Nice guys don’t stand by while the ship they’re responsible for is sinking. Nice guys figure out sooner or later whether they’re the “right guy” for the job and then do something about it. By this definition, the only nice guy in the Big 2.8 is Billy Ford.
Rick Wagoner has utterly failed in his responsibilities to all of GM’s stakeholders: shareholders, customers, suppliers and employees. His incompetence will end up costing thousands of people a means to earn a living. He’s anything but nice.
Check out this blast from the past, circa 2000:
“Part of GM’s plan to improve profit margins while stemming North American market share losses is to ramp up production of sport-utilities and trucks in 2000 while cutting back on production of several small, midsize and luxury cars.
In 1992, GM offered 73 cars and 34 trucks, a total of 107 models. By 2001, Zarella said the company will offer just 39 car models and 40 truck models.
Among the small and midsize car models to be slashed are the Chevy Metro, the Geo Prizm and the Oldsmobile Cutlass.
‘We are aligning production to focus on higher profits. We lose a lot on smaller cars and that’s where most of our market-share losses are from,’ Zarella said.”
http://www.mindfully.org/Industry/GM-Goal-More-SUVs.htm
Read the entire article and you get a clear glimpse into how a finance/MBA guy sees the world. Maximize short term profits by milking the most profitable part of the business portfolio … all while making exactly no plans for how to deal with any future structural changes in the marketplace. Never once did it occur to this knuckle heads to figure out how to make a profit on cars … you know, the business which had been the core of GM for over 80 years!
The lender’s residual losses average $11,000 a vehicle for GM models, GMAC Chief Financial Officer Robert Hull said yesterday
There’s not much bid when these SUVs went to the auction either.
General lost so much a car, is not funny at all.
Blogging Stocks: What would [Wagoner] have to do to get fired? Join Al Qaeda?
Bruce Ismay leaving the ship? Nooooo!
It’s maybe not that Wagoner is the ultimate villain, it is that he is at the end of a long line of much worse than average GM execs.
A blogger noted that Ron Zarella the marketing garu from Proctor & Gamble did much damage in the 90’s. Yes, and there was Smith and many others who came from a legacy of GM being the World leader who everyone followed in the Auto business. This arrogance is not something easily shed as it goes back 100 years.
GM, & Ford got bad leaders because the corporations were only public in name. The boards were hand picked milk toasts or family toddies, and their execs were KYA guys through and through. The public got to look at these companies as utilities the electric company would always be there so would GM.
In a way they were high stakes gamblers, they believed Americans unlike Europeans would always have to have their trucks and SUV’s. Before that it was oversized and overpowered large cars. It bought them 15 years of time to not fix the fundamentals with the company.
Now, with no juice from those profit centers,almost no viable car models, and a horrendously late start in alternative energy type cars, the perfect storm is raging.
There may be something left called GM after the storm, but it will never again look like the GM I grew up knowing.
Resigns huh? Why? He has done such a good job. Just ask the Shareholders.
Just bring back “Body by Fisher”, this would fix things!
I’m willing to admit that the domestics would have had a tough time producing a decent small car at a profit against foreign makers, who always had the advantage of lower labor costs. And I thought that Saturn was a great idea at the time, as it attempted to use a motivated work force to produce decent small cars that America would buy at sticker price. But the $$$ of SUV’s caused GM to piss away their only chance (Saturn) at a coherent “small-car vision”, and now they’re just stuck.
Wagoner a nice guy? Yeah, I’d be a nicer guy if I could quit work tomorrow and live to a ripe old age with no money worries, and my job was essentially a “hobby”, where the price of failure is non-existent (unless I had a sense of pride in my “hobby”).
A board of directors that has kept Mr Waggoner as long as they have – deserves what they’ve got.
IMO, there’s a Perfect Storm already underway for GM, and changing the captain or attempting to alter course is mostly meaningless at this point.
I don’t think Wagoner has the actual ability to run a corner coffee shop properly.
Having “resigned” myself from the corporate world over a decade ago, I could see the new paradigm for senior management was the backstabber. No ability or knowledge about the business, but a serious need to be top dog.
As the years have passed, more evidence of this corporate type have surfaced in older industries. To whit, they get all the money, the serfs get bugger all — the MickeyD model.
American industry is populated with these over-inflated egos. They demand excellence, expect mediocrity, because no one else is as smart as they think THEY are. Nardelli, e.g. Jack Welch, another moron in my view, and arrogant with it as well. The Enron boys. Etc. etc.
There’s thousands of these types of people in charge across corporate America. No-nothing egomaniacs. Your country’s economic performance reflects that fact, and ours isn’t much better north of the border.
Then there’s the incestuous boards of directors, where everyone knows everyone else and is (are) just as bad at running their own companies. If it weren’t for the IT industries where innovation is expected, things would be totally dire.
I hope Buickman gets a class action suit to sue the pants off Red Ink Rick and his Bored of Bystanders as individuals. They deserve to defend themselves publicly so that all can see what total and complete incompetents they are.
Paraphrasing Johnson and Nixon:
“I will not be the first CEO of GM to declare bankruptcy!”
I do think that fresh blood is needed, so I hope this is true. I want GM to be around when I get the money to get a Camaro…
Next week? Why wait…I say he should “git” while the “gittin’s” good!
And he should retire and stay retired. No more management positions for that man, not even at a Taco Bell restaurant!
Wagoner may not be the best person for the job, but he is far from the worst. But wasnt this Wagoner will resign rumor done before not long ago.
Anyway, thank god its a rumor.
Guess I’d better head on over to the pharmacy and stock up on Pepto or something because it’s going to be REAL hard to stomach the bullshit statements about what a great job he’s done in bringing GM forward, taking them to the next level, turning things around, setting the right course,…
I blame the board of directors for falling hook line and sinker for whatever line of crud fed to them by GM’s senior management. It has always been their responsibilty to hold senior management accountable and they have failed miserably. I also hope they get their asses sued and hopefully they lose.
I wonder if the “leaving to pursue other opportunities” line comes up-it never fails to crack me up.
Anyone care to venture on the stock price if the resignation is real?
my two questions are these:
[1] what in hell have they been teaching in business schools for the past 30 years – other than how to rape, pillage and plunder corporate resources and consumer markets?
[2] and why?
[2] and why?
Easy cash. And damn the consequences…
Roger Penske would be the obvious choice.
Not sure if (at his age) he’d be willing to take it on………….
I am a “car guy”in the industry for a lifetime.This industry went down the toilet when Madison avenue drove the buyers to take a look at what then were “cheap”alternatives.A.K.A imports.
Imports were supposed to be inexpensive.CHEAP to buy.Madison Ave did its job.We did our job to export jobs.Who cared about any auto employees future?
We already know.I do not want to get into the U.A.W vs the company crap.Thats history.
When I entered this business I started in the shop.Yes washing cars.I had what was called “car moxie” Today the car fan buys waterless car wash.I have spent hours detailing my treasures.
Most of the experts(scribes) could not “rack’ a car.(lift properly)They do not care to understand that anti-seize applied to the slides on brakes will improve braking quality and life.
We have the car company’s we deserve.Yes you ! I am talking to you..the
guy with the drink in your hand, who looks at pretty pictures of cars.We expected every manufacture to be all things for all customers.
Generic bull.Jeep Universal Wow what a concept!Empty trucks that stood 5” above the competition!
The girls wanted bigger (we told em bigger was better, thus the Humber)
We killed A.M.C because they offended us by trying to sell a cheap car (Henry Ford ?)
The car consumers are a runaway lynch mob.
How about those stockholders?Big return wanted while others do the work?Accountable to who?I own shares I should damn well understand something about my business. I just bought into..or should I?
Explain how Bonus Time can occur during a loss?What the hell is that?Hey bean counters explain that one on the front page please!This will never happen.
Consider this Detroit hired all the talent so the competition would not be the employer.Sounds dumb,but it happened.TOP HEAVY POOL
.Oh yes a Applause for the lawyers.
Not the corporate insider’s but the “outsiders” who filed daily when they discovered how much money was in the well.Go get em boy’s.Proud?
The proposal to move to the left coast…Run from that one please.Lawsuits on the way in!
Detroit is the Capital of Wheels,the off shore company’s are buying here(for image or unemployed workers they can screw?)
I sat on my dads lap steering a Buick…remeber that brand?I drove 440 six packs new..recentley a Shelby Series II at Road America (1999)spent many hours at South Bend.
Now back to the mudslinging.
Kill the stockholders shares!These butt heads did nothing so they also loose.Good bye free loaders!
ZERO value ! File it on your taxes and keep going…stcokholders should own the products they invest in.Look in their drive ways.
Sell stocks to qualified holders..with brains this time.No more auto-pilot!
The best input is from car dealers not the “Jag/offs’ Real .Car dealers do know more about this business,than any career insider.HANDS on they do what it takes.
Here is a course.A board made up of car dealers/service people.Not just franchised ,include .Independent car dealers,they are experts.
Many new car dealers took the easy way.Warranty or gone ..called the free-way!Why not?
No bonus until every bill can be paid.Stop trying to fill all niches.Example mini vans.Ford tried how many times?DUH !This is not going to be corrected overnight.Be prepared to wait.This is not fast food.
Stop overproducing. No more fire sales !We can not get off the Rebate incentive ball by overproduction.Think 1981 K-Car.
Crush the cars that are unsold.Stop the sale of wrecks.I was at an auction,Lomira Wi,where the G.S.A sold flooded cars.I have a picture of a two inch tall plant growing on the carpet of a 2007 Chevy Impala.Yupper, the USA Sam./ gov competing with Detroit.
Just like the insurance company’s.
Flooded? Crush em!Wrecked? Crush em!
Gm has tried to build the right stuff as has Chrysler and Ford.They were led by morons in the press..Dopers from the 70’s with that stupid glow Hey dude why not build what brand X builds? I might just buy it for a loss.Hey if it is so good buy it! Cheap people do not help grow a company.Microsoft deserves profit but not Detroit?Toyota deserves ?Detroit does not? W.T.F is that all about?
Gm builds Suburbans…Ford F-150’s with 300’s…
Chrysler Slant Six…Darts with room…
VW Beetles…
BACK TO REALITY…
We really do have the best brakes and fuel delivery systems,tires that ride, suspensions that soak up shitty roads. Now if we could get the right buyers who deserve a wagon wrapped in fauxe wood grain to take the whole neighbor hood to the Drive in Theater.
The Auto Messiah you seek is here among us.
Oh yes! Get this “he” is also a used car dealer.
ROGER PENSKE /Roger Penske,
The Right Roger !
After all you are a used car owners!Right?
For those who are not working in the biz..come on in!
The waters deep. We all want out any how.
Lots of room here.I also want your retirement /benefit package.
Most of you could not sell on a troop train(my mentor told us that one)
Most of you would not make it here..takes balls to be a car guy !
Please realtors do not apply.You do not invest in anything but signs.
The End of Detroit as we know it.
Otto Sales (53074)
Can you handle the truth?
Or live with out Detroit?
Thank you.
God Bless Detroit.
As Share Goes Bye
Jim Dollinger
Monday, January 2, 2006
You must remember this,
A loss is just a loss.
The pie is still in the sky.
Fundamental marketing does apply,
As share goes bye.
And when Toyota’s up by two,
We only get Daewoo,
On Rick Wagoner we cannot rely.
No matter what the economy brings,
As share goes bye.
Rebates and confusion, way out of date,
Execs full of themselves, ready for their fate,
Buyers want self image, hope it’s not too late,
For it’s that we must supply.
It’s still the same old story,
The flight of sales and glory,
A case of change or die.
The world will always respect a winner,
As share goes bye.
Second Verse:
Now also remember this,
Their ass I will not kiss.
The numbers tell no lie.
Good times no longer apply,
As share goes bye.
And when we drop another two,
The Board will not say boo.
On just who can we rely?
No matter what Paul Ballew sings,
As share goes bye.
Plenty of new products, seen their next update.
Execs shuffled around, really same old slate.
Buyers shopping elsewhere, regardless of the rate.
Competition growing stronger, that we can’t deny.
Its really getting boring,
Toyota and Nissan soaring,
A case of reality defy.
The industry is losing its leader,
As share goes bye.
Best played in S (as in sales) Flat.
Japan Produced HOMES 2009 now in your sub division.
When will Honda or Toyota sell real Japanese produced houses?It has to be coming like we are!
We do have a “right’ to own imported houses.
We’ve got some real gems in the comments on this one. -_-
I clicked John Horner’s “mindfully.org” link and in the eighth paragraph of an article written in 2000, I find this gem:
“Wagoner didn’t give a time frame for all of the goals…”
Some things never change.