By on December 22, 2008

Mark LaNeve is GM’s Vice President, North America Vehicle Sales, Service and Marketing. Still. As such, the marketing maven must motivate the masses of metal movers who are morose at the moribund market. Of course, LaNeve has a major victory to report: the corporate mothership no longer depends on its dealers for its immediate and, let’s face it, longer term survival. That sponsorship has been transferred to the U.S. taxpayer. Still, in a letter to the stores [full text below], LaNeve reminded the troops what it’s all about. “I pledge to all of you that my team and I will continue to work together with you as we make the necessary structural changes to prove the viability of a new General Motors –to the current and incoming Administration, to Congress and, most of all, to our current and future customers.” Ah, customers. Now you’re talking!

“In that regard, I want to assure you that we will push ahead with our new product launches and our advanced technology. And perhaps most importantly, we need to sell the great cars and trucks we have on the lots today. We have worked hard this month to give you the tools needed to sell in a time everyone agrees is the most difficult the industry has seen in a while. We believe that the announcement of the loans will begin to build back consumer confidence, so there should be new sales opportunities out there.”

Should be? And what of the anti-bailout backlash)? Does LaNeve understand that the loans could make GM dealers’ jobs harder, as Americans wonder why they should pay twice for GM’s products? If he does– and that’s by no means a given– he ain’t sayin’. Would you?

Dear GM Dealers:

As I am sure you heard, today the President extended a financial bridge to General Motors and the domestic auto industry at a critical time for the U.S. auto industry and our nation’s economy. This action helps to preserve many jobs, and supports the continued operation of GM and the thousands of dealer partners, suppliers and small businesses across the country who work with us on a daily basis.

This action allows us to accelerate the completion of our aggressive restructuring plan for long-term, sustainable success. It will lead to a leaner, stronger General Motors, a company that is:

* Dedicated to great cars, trucks and crossovers with, exciting design, segment-leading fuel economy and world-class quality,
* Fully committed to leading in energy-saving vehicles and advanced technologies, and
* Responsive to the needs of our customers, our stakeholders and the communities in which we live and work.

I pledge to all of you that my team and I will continue to work together with you as we make the necessary structural changes to prove the viability of a new General Motors –to the current and incoming Administration, to Congress and, most of all, to our current and future customers.

In that regard, I want to assure you that we will push ahead with our new product launches and our advanced technology. And perhaps most importantly, we need to sell the great cars and trucks we have on the lots today. We have worked hard this month to give you the tools needed to sell in a time everyone agrees is the most difficult the industry has seen in a while. We believe that the announcement of the loans will begin to build back consumer confidence, so there should be new sales opportunities out there.

Finally, I want to let you know that the GM team and I cannot thank you enough for the support you have shown General Motors over the past few months. I truly believe that the effort you put in to supporting assistance for General Motors was key to making it happen. We have a lot of hard work ahead of us, but I am very optimistic and confident that the entire General Motors team will get the job done—and in a way that makes us all proud to be part of this great company.

I’ve scheduled an IDL broadcast for Monday, December 22 at 3 p.m. (EST), Channel 1, to talk more about the status of the federal bridge program, our business and give you more detail about our plans going forward.

Again, thank you from the bottom of my heart and I look forward to talking to you on Monday.

Mark LaNeve
Vice President
GM North America Vehicle Sales, Service and Marketing

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25 Comments on “Bailout Watch 300: GM’s Mark LaNeve: There’s Got to Be A Morning After…...”


  • avatar
    psarhjinian

    Dear Mark,

    And the reason you and your fellow executives and GM weren’t doing all of this stuff years ago, as opposed to the last six months, is…?

    I mean, other than your backs being against the wall?

  • avatar

    So… when does the memo go out to Saturn, Hummer, and Saab dealers (and when push comes to shove, Buick, Pontiac, and GMC) that says “thanks, now there’s the door”?

    Wishful thinking, I guess…

  • avatar
    dastanley

    “a new General Motors”?

    What the hell’s so new about it? Get rid of Wagoner and maybe some newness will show.

  • avatar
    John R

    I remember that episode of Star Trek very well. I still don’t see the connection.

  • avatar
    Blobinski

    I agree with the previous posts. I save my car mags and way back in the late 80’s GM cars were being thrashed for low quality and bad designs. Here we are ~20 years later addressing the issue? Again, GM should take a lesson in how to turn around a car company and talk to Hyundai. Excellent service, good cars and no BS. Just an example…

  • avatar
    buzzliteyear

    A disease that turns people into short-sighted self-centered mediocre drones as soon as they join the management ranks of the Detroit 2.78 is as good an explanation of the current mess as any…:-D…

    Bonk! Bonk! On the Head!

    http://en.wikipedia.org/wiki/Miri_(Star_Trek)

  • avatar
    no_slushbox

    “We believe that the announcement of the loans bailouts that will never be repaid will begin to build back consumer confidence convince some sucker to buy your dealership, so there should be new sales opportunities out there time to sell your dealership.

    Unless you are really stupid enough to think that the bailouts will continue indefinitely, or that GM will recover without the kind of bankruptcy that will allow it to drop your ass without giving you a dime. If you believe that then you probably believe my hair is real.”

  • avatar
    CarPerson

    Mark,
    I must respond to your comment “Responsive to the needs of our customers…and the communities in which we live and work.”.

    BULL

    I refer you to the “Chevrolet Launches Cruse” article on page 11 and 12 of the December 2008 issue of “Automotive Engineering International,” (aei-online.org) an SAE publication. In the article, Peter Mertens, General Motors Global Vehicle Line Executive for Compact Cars extols the virtues of the interior soft-touch plastic being much cheaper than it appears.

    He then goes on to state that although the body has 140% more torsional rigidity compared to the Cobalt, it does not pass the side crash-protection requirements in those jurisdictions who, despite intense lobbying to block, passed legislation forcing carmakers to increase vehicle safety.

    He states that reinforcements to the B-pillars and the rocker panels to achieve a higher level of safety will only be used in those areas where government regulation prevents them from being left out. Paraphrasing Mr. Mertens, “It will be a cold day in Hell when GM pisses away $4/3lbs per car on some dumb-ass goal of protecting vehicle occupants in a side crash.”

    SEARCH TERMS FOR FUTURE LITIGATION SEARCH:
    T-Bone, Side Impact, Crash, Accident, Intersection, Red light, Stop Sign, Irresponsible car design, Multimillion Dollar Settlements.

  • avatar
    Pch101

    GM produces almost as many turnaround plans as it does cars.

    It’s surprising than anyone takes them seriously anymore. If the last dozen or so haven’t accomplished anything, why should this one be any different?

  • avatar
    Detroit-X

    Mark LaNeve (who photographs like a cleaned-up Uncle Fester) seems to forget that he and all GM executives have ZERO credibility, and a shameful track record, when issuing these laughable pep-talks. Pass the Kool-Aid.

  • avatar
    no_slushbox

    CarPerson:

    Interesting to see the real reason the Cruze launched in South Korea before the US.

    Is there a free link to the article?

  • avatar
    CarPerson

    The publication referred to above, “Automotive Engineering International”, has a website: http://www.sae.org

    The article, written by Dan Carney, appears only in the listing here:
    http://www.sae.org/mags/aei/current.htm#features

    I do not see a link to the actual article.

  • avatar
    skygreenleopard

    Despite the complexity of the credit crisis, loans, turnaround plans, the economy, the union situation, suppliers, dealer closures/closure stalls, etc., it comes down to this:

    GM needs to sell more cars than ever to get out of this alive. However, the reason they’re in this state is because they’ve created a company that offers the least-needed and least attractive products right now at too great a cost. It’s a Catch-22 with the only result being failure.

  • avatar
    Deepsouth

    One of the news magazine shows on the television yesterday stated that Illinois governor Blagojevich truly believes he is innocent of all charges. That he still has credibility. Maybe Blagojevich could check into a GM management postion in the future. He seems to fit the profile. Of course, even GM has their standards. Not. Yes, Mr. LaNeve whatever you say.

  • avatar

    this from the folks who killed the LeSabre and replaced it with Loser (Lucerne) and Regal/Century with Lacrosse (masturbation in French). those who change Buick’s slogan every few months..Spirit of American Style, It’s All Good, Dream Up, One Beter, Drive Beautiful, Beyond Precision, and discontinued Park Ave leases out of the blue 4-1-01 with no warning, leaving thousands of loyal customers stranded and scrambling just as the spring market began. furthermore they offer the most confusing and unfair programs and incentives in the industry. and there’s any wonder why sales tank year after year.

    what’s needed for GM to have any chance whatsoever is a complete housecleaning at the ren Cen beginning with Red Ink Rick and extending throughout the marketing organization.

  • avatar
    Cicero

    “As I am sure you heard, today the President extended a financial bridge to General Motors and the domestic auto industry at a critical time for the U.S. auto industry and our nation’s economy.

    “This action allows us to accelerate the completion of our aggressive restructuring plan for long-term, sustainable success continue implementing our time-honored strategy of refusing to face reality while GM’s house burns to cinders, for a few more precious months.“

    Let’s be honest, Mark.

  • avatar
    thalter

    “In that regard, I want to assure you that we will push ahead with our new product launches and our advanced technology.”

    Um, didn’t GM pretty much shitcan all their upcoming product launches except for the Volt (too important for getting bailout dollars), Camaro (too far along) and the new Buick Lucerne (who the hell knows why).

  • avatar
    shaker

    Maybe Mark is saying (in his own way)

    “I’m a Grup… and I want to help.”

  • avatar

    Clue for caption contest: that’s Shatner’s real-life daughter.

  • avatar
    nevets248

    Obviously, the hair growth chemicals have leached into the thought areas of the brain, producing another world-class press release.
    What an asshat!

  • avatar
    jkross22

    When LaNeve says ‘customers’, he means taxpayers.

    @ Buickman:

    Why stop at Marketing and Executives? Seems like the vast majority of leaders within GM don’t have the stones needed for a turnaround. Those that do have the intestinal fortitude are likely beaten down into submission or quit due to frustration.

  • avatar
    nevets248

    Dr. McCoy: “Now this is marvelous. The most horrible conglomeration of antique architecture I’ve ever seen”.

  • avatar
    Bridge2far

    “Should be? And what of the anti-bailout backlash)? Does LaNeve understand that the loans could make GM dealers’ jobs harder, as Americans wonder why they should pay twice for GM’s products? If he does– and that’s by no means a given– he ain’t sayin’. Would you?”
    Now I think that is quite a stretch. Customers want a good value in a good product from a good company. Period. And yes I realize that this is a GM pinata here, but let’s look at an often overlooked fact. GM sells more vehicles in the US than anybody. And they will need to sell more to increase cash flow. And I believe they will continue to improve and be aggressive in the marketplace. Why? They have to.

  • avatar
    Bridge2far

    “Unless you are really stupid enough to think that the bailouts will continue indefinitely, or that GM will recover without the kind of bankruptcy that will allow it to drop your ass without giving you a dime. If you believe that then you probably believe my hair is real.”

    Yes I did say that this is pretty much a GM pinata here. Witness the above from one of the more vocal “best and brightest.” Perhaps if Mr. LaNeve were handicapped you could poke more fun too.

  • avatar
    no_slushbox

    Bridge2far:

    Is that all you have, comparing LaNeve’s bad hairplugs a real disability?

    If that makes you feel better about the fact that Americans are being forced to pay billions to bail out a failed company then go right ahead.

    GM is in no way a Pinata. Normal companies go bankrupt, they don’t get to beg for money in front of Congress. GM is getting preferential treatment on the taxpayers dime because a lot of special interests are involved.

    Just to give you a heads up, LaNeve is lying to the dealers to get them to keep moving metal while GM secretly plans to drive most of the excess dealers out of business.

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