A person that’s a motivating, inspirational leader that’s familiar with big companies — manufacturing or industrial — would be helpful… We can’t pay people a whole lot of money here
Ed Whitacre offers up the opportunity of a lifetime [via Automotive News [sub]] : a chance to lead General Motors to victory over decades of inertia and sclerosis in a brutal market for a million bucks (if Feinberg likes you). Candidates need not have CEO experience or strong auto credentials, although Whitacre warns that the job takes him 14 hours a day, 5½ or six days a week. And when he does manage to steal away for a relaxing Sunday of rattlesnake extermination, his phone constantly rings. Plus, the RenCen is a freaking maze, y’know?
GM’s CEO and Chairman Ed Whitacre confirmed today that Dutch boutique sportscar firm Spyker is the only bidder for what’s left of Saab after the BAIC deal. Saab insiders insist that the firm can continue without the old tooling and technology sold to BAIC, and they still have their hopes pinned on the new 9-5 model. But, as the WSJ reports, Spyker earned a mere €7.9m in 2008 revenue, and has already endured an €8.7m net loss in the first half of this year. Spyker’s in no position to be saving struggling Swedish automakers. But behind Spyker is Convers Group, a Russian banking group with deep pockets… and a uniquely Russian reputation.
Sure, GM Sales and Marketing maven Susan Docherty is better at the webchat format than CEO Ed Whitacre (not to mention Mark “HOT DESIGN” Reuss). Docherty’s emoticon-free performance certainly beat Whitacre’s for sheer volume, but even when she’s talking a lot, Docherty isn’t really saying much of anything. Since GM is generally operating under radio though, today’s webchat is about all we have to go on for a taste of life in the RenCen as a turbulent year sweeps to an equally turbulent close. So let’s dig in, shall we? Read More >
For all the criticism that’s been leveled at GM’s finance operation, the firm’s most recent CFOs have yet to pay much of a career price. Previous CFO Fritz Henderson was promoted to the CEO’s spot by the presidential auto task force, and Automotive News [sub] reports that current CFO Ray Young has just been named VP for International Operations. Young’s departure from GM’s finance unit has been something of a foregone conclusion since GM exited bankruptcy, with reports of his imminent departure in the Detroit papers of record going undenied, and a recent acknowledgment that a search was on for his successor. In light of GM CEO Ed Whitacre’s ongoing game of executive whack-a-mole, it was tempting to believe that Young was on his way out, but apparently GM CFOs are pre-sprayed with teflon.
GM’s New Chairman and CEO, Ed Whitacre may not be talking to the press about his plans for the state-owned automaker, but he’s talking to someone. Reuters reports that Alan Mulally, CEO of Ford, has already had a chat with GM’s chairman and CEO, Ed Whitacre. Mulally didn’t disclose what they talked about, but did mention his reasons as to why they had the chat. “You want to be supportive because we have a lot of industry issues that we work together,” Mulally said, “He’s reaching out just the way that I did when I came in.”
It’s easy to blame GM’s new Chairman and CEO’s recent webchat performance on the format. Webchats invariably combine the awkward claustrophobia of conference calls with the eloquent clarity of text-messaging, for a match made in communication hell. That’s no place to properly explain what the NSFW is going on with your company. Especially when you have yet to comment on the “Opel drama,” “palace coup,” “tilt-a-executive,” and “getting in bed with the Chinese” storylines (among others). Needless to say, the MSM is not amused. Nor, frankly, am I. Which is why today’s quote of the day is actually nine days old.
The blood is flowing like water at the RenCen, as brand-new Buick-GMC manager Michael Richards has left General Motors after nine days on the job. The Detroit News reports that Susan Docherty’s replacement left to “pursue other career opportunities.” Richards had been VP Sales and Marketing at Austin, Texas automotive firm Trilogy, and according to the DetN’s sources:
Trilogy made a strong counteroffer to keep Richards, and he was said to be considering that offer in light of Friday’s management shakeup engineered by Chairman and CEO Ed Whitacre
Chevrolet brand manager Brent Dewar has become the latest victim of Ed Whitacre’s purge of GM’s management, reports Automotive News [sub]. Dewar will be replaced by James Campbell, who had been in charge of GM’s Fleet and Commercial Operations. According to a GM release:
Dewar has elected to retire effective April 1, 2010 to dedicate more time to his family and to pursue personal interests. Until then, Dewar will work closely with Campbell to ensure a smooth transition at Chevrolet and also will be on a special assignment supporting Mark Reuss, GM president North America, in his new role.
Check out Fiat/Chrysler CEO Sergio Marchionne’s recent quote-tastic speech and Q&A session at the Peterson Institute for International Economics. The speech is almost identical to the one he gave at the Five-Year Plan, but the Q&A session is full of fun insights, ranging from Sergio’s fear of a Chinese planet and Opel regrets to the reasons for pricing discrepancies between Europe and the US.
Between trying to pull of one of the greatest attempted miracles in the history of the auto industry, and keeping things together at Fiat, you can bet Sergio Marchionne does. He tells the Freep:
This cannot go on forever. Certainly within the next 24 months, we’ll find a more permanent solution, either there or here. I’m not threatening the Italian side with a departure from Italy, but we need to find a solution.
GM’s New CEO Ed Whitacre made his first appearance at the Fastlane blog in a webchat that represented the first access GM has given reporters to Whitacre. Needless to say, journalists do not like sharing their access with the general public, and they let GM know. Thedetroitbureau’s Paul Eisenstein asked “like many of my colleagues, I wonder when you will address us in the media directly, even if by telephone conference. To be honest, a webchat is quite a bit different and doesn’t carry the veracity of seeing or at least hearing you directly.” To which Whitacre responded:
Dear Paul,
I’ve been on the job for four days. I’ll do it as soon as I feel comfortable and have enough clear air and time. I promise we’ll talk soon.
No worries though. Whitacre didn’t actually say anything newsworthy.
In a lengthy, wide-ranging interview with Automotive News [sub], Fiat/Chrysler CEO Sergio Marchionne got an awkward question from AN’s Luca Ciferri.
Your five-year plan forecasts that Chrysler’s operating margin will peak at 7 to 7.7 percent of revenues in 2014. In November 2006, you predicted that Fiat Group Automobiles’ operating margin would peak at 4.5 to 5.3 percent in 2010. How could Chrysler’s post-global recession peak profitability be 50 percent higher than Fiat Group’s pre-global recession assumptions?
The AP reports that GM’s Ed Whitacre is reshuffling executives, turning an already-nervous RenCen on its head. Whitacre has elevated global engineering boss Mark Reuss to take charge of US operations, not an entirely surprising decision as the former Holden boss’s star had clearly been rising. Considerably more shocking was Whitacre’s decision to strip Bob Lutz of his marketing position and roll that responsibility into Susan Docherty’s Sales position. But don’t cry for the man called Maximum: Lutz will remain vice-chairman, will become “an adviser on global product development,” personally advising Whitacre on the auto industry. Nick Reilley, who has been GM’s international fix-it man, has been appointed President of GM Europe, while Diana Tremblay has been named vice president, Manufacturing and Labor Relations. “I want to give people more responsibility and authority deeper in the organization and then hold them accountable,” Whitacre said in GM’s statement, found here.
If there’s a word to describe the feeling inside GM right now, it would be “nervous.” Though nobody was surprised that Fritz Henderson would leave at some point, it’s clear that his ouster was strangely timed and indicative of Ed Whitacre’s desire for rapid results. In an instant, Whitacre public image went from Iacocca-wannabe-pitchman to hard-charging Texas executive, seemingly defined by (get this) his penchant for killing rattlesnakes by pinning them with a stick and crushing their heads with a rock. So vivid is this metaphor, that according to Businesweek‘s David Welch, a number of GM executives actually offered their resignations to Whitacre immediately following the Henderson’s canning. Though Whitacre declined to let the bloodletting continue, a numberofcommentators now appear to believe that Whitacre wants to run GM himself. Though pay caps will be the easy excuse for not finding a new CEO, the board of director’s activism in clashing with Henderson over the Opel sale could discourage other executives from even considering the job. Moreover, Whitacre’s history of taking over companies and molding them in his image is well-established from his time at SBC/AT&T. So, will Ed Whitacre drop the pretense and the word “interim” from his title, or is he really just clearing the way for someone else?
Apparently you’re not a real blog anymore unless you play some part in the giddy rush to strip Tiger Woods of any remaining shred of privacy… so as much as we’d prefer to not escalade the situation, here goes. USA Today reports that the Cadillac Escalade Tiger allegedly drove into a fire hydrant doesn’t belong to him, but is actually owned by General Motors. Huh? Didn’t GM and Tiger part ways just over a year ago? Woods’ contract with GM was originally supposed to expire this year, so perhaps Tiger was due a few perks post-contract because of its early demise. Or, maybe the Escalade was just an old-fashioned celeb loaner. Either way, maybe this will change the conventional wisdom that lending free cars to celebrities is a good decision branding-wise. Especially for firms that are going to have to use taxpayer money to pay someone to buff out those 9-iron marks.
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