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Thanks to KixStart for providing transcripts of the exchange on September sales that launched the current GM production goal controversy.
Chris Russo, Credit Suisse:
“I noticed in the comments, in prepared remarks and [others], there’s an increased focus on market share from your company, which can be good but which can also be dangerous, is this a shift in tone at the company is gm, do we have to learn about industry pricing, is GM, not having learned the lessons of the … going after market share at the expense of profit and price? Is there a new regime here?”
Mark La Neve, GM:
Very good question. I would say that there is certainly a viewpoint from GM management and our board that we need to be aggressive in the market place, that we need to put a line in the sand on losing share, I mean, common sense, you know me, I’m pretty practical… you keep eventually it gets to zero… Got a deal right now with the bleedoff of the 3% share points of our wind-d0wn brands, gotto do it with less dealers and modelsGotta be aggressive in the market place, gotta defend our share, grow it at some point. … don’t get bogged down in numbers floating around. Continuing to lose isn’t a good strategy. Want to do it profitably I think we’ve got a pretty good track record onWant to do it profitably. I think we’ve got a pretty good track record of holding disciplined levels on incentive spend.Overall strategy gain share on product and marketing.We’re going to spend some more dollars on advertising. … We’re going to properly tell our story.“But we’re not going to go out and buy it [market share], if that’s what you’re worried about, Chris. From an incentive standpoint, we’re not going to go out and buy it.”
6 Comments on “The Conference Call Question That Kicked Off GM’s Production Goal Controversy...”
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lol….always be wary when the response to a question starts “that’s a good question.”
Please note, KixStart got Chris Ceraso’s name wrong (as in, it’s not Chris Russo). KixStart’s hearing isn’t what it once was, not that it ever was much, and he offers a sincere apology to any delightfully sharp-tongued Credit Suisse analyst who felt slighted.
Also, there may be small errors in the transcription of Mark LaNeve’s response because, ummm… well… Mark LaNeve tends to babble on.
I think we’ve got a pretty good track record of holding disciplined levels on incentive spend.
They have? They’re still above the industry average.
What a bunch of jive. Everybody wants to gain market share profitably, but few know how.
GM will never resist the temptation to buy market share, even if it doesn’t work in the long run.
Every time Hyundai cuts their own capillary, GM has to cut their own artery to compensate. Hey GM: It’s not working.
Isn’t Mark La Neve history this week?
lol….always be wary when the response to a question starts “that’s a good question.”
It really annoys me when clowns like LaNeve, instead of answering the damn question, patronize the questioner and kill time by mumbling what a great Q it is.
Mark La Neve looks like Eddie from “The Munsters” and knows about as much when it comes to running a large corporation.