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General Motors at a Fork in the Road ……And…… A Possible Solution for a Robust Resurgence
Automotive News ^ | January 10, 2006 | Jerome B. York

Posted on 01/14/2006 12:09:21 PM PST by Iris7

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To: gotribe

Yeah, the whole Saturn and Oldsmobile business is amazing.

Just reduce Chevrolet and Pontiac to one model each with varying trim options, give Buick a good sedan and station wagon, bring back Oldsmobile as the full size heavy "Chrysler 300C" brand using the newest cool stuff and leave Cadillac alone. Easy as pie, and it worked for almost fifty years.


21 posted on 01/14/2006 1:14:38 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: Iris7

I first thought this said "GM is done, stick a fork in them."


22 posted on 01/14/2006 1:31:20 PM PST by RichardW
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To: TheOracleAtLilac
There are two new coalitions forming in General Motors upper management, one around Bob Lutz and the other around Fritz Henderson. These people want to survive the coming changes and be part of a resurgent General Motors. The individuals concerned are uniformly very ambitious. Not saying these guys will win out -

I hear that Ford is in much worse shape than GM. The scuttlebutt is that Ford is not honoring warranty obligations in a systematic way.
23 posted on 01/14/2006 1:35:55 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: Cobra64

"Jerome goes around and around and around." Isn't that the truth? Very rambling speech. He revisits the same points again and again and again. He needed to have an editor really pare this thing down to fighting weight. If he can't do that in a simple speech, could they do it to a large organization?


24 posted on 01/14/2006 1:37:49 PM PST by ProtectOurFreedom
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To: Hardastarboard
"GM's needed to do this for 30 years, but hasn't done it yet."

All too true.

As far as Bill Clinton goes I would love to see him repent like David Horowitz did. Clinton turning on his past "friends" would be so cool.

Have to work really, really hard to keep the SOB alive, but it sure would be worth it.
25 posted on 01/14/2006 1:49:21 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: Iris7
Just my opinion, Bob Lutz aint da guy to head GM

He's done a lot of great product stuff at Chrysler, but
At GM he can only echo his earlier Chry. efforts - but a day late/$ short
GM's too big, stodgy & structured to allow creativity/results that Lutz achieved @ Chry

Case in point; rebadging the Aussie (Monaru ?) as the GTO.
where's the exciting body work, Bob ?
GTO'S a--->LOSER ! which should've never been intro'd in current config.

26 posted on 01/14/2006 1:56:53 PM PST by TheOracleAtLilac
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To: Iris7

"I hear that Ford is in much worse shape than GM. The scuttlebutt is that Ford is not honoring warranty obligations in a systematic way."

How do they do that? It's either in the warranty or it's not. I've never had any difficulty and I've got two new Fords in my garage.


27 posted on 01/14/2006 1:57:31 PM PST by RichardW
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To: RichardW

Howdy, Richard.

The situation is very bad. Not "done", it can be fixed, but if things change like they have to then General Motors will be a very different place. (understatement!)


28 posted on 01/14/2006 1:57:50 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: Cobra64
Jerome goes around and around and around. I stopped reading after page 200.

You've got that right.

GM is a complicated situation and I hate to comment not having studied it fully or even finished the article but I would say this and conservatives will see the truth in it.

A big company is like a government. And like all conservative solutions to big governments, one CANNOT go wrong by cutting out every unproductive use and user of cash.

Real and painful solutions are always avoided until they can be avoided no more (and that is the fork in the road). GM has union problems and it has management problems...both related to waste and non-productivity.

And then there is the product line-up. Not only does GM have to put each product under the white hot light of day, they have to realize that each product in their lineup reflects their fattiness of management and their company oriented style (AS OPPOSED TO A COMPANY THAT IS PURELY CUSTOMER ORIENTED).

GM needed to be scrubbed down to every nook and cranny. It needs to be reborn.

There is plenty good about GM but there is much that needs to be revolutionized. Like every business, it needs to be customer driven. If a product doesn't directly and powerfully address customer (and market) desire...off with its head.

An old mentor of mine (the best money maker I ever knew) used to say, business is simple...its professional businessmen that screw it up. When it stops being about the customer and starts being about the stockholder or even worse the management (or, God forbid, labor), the customer loses interest and the bottom line starts heading down.

I'm not saying that a company shouldn't be good to its employes (management and labor)...a good environment for them is good for productivity and good for the customer. But when the eye is no longer obsessively on the ball (the customer), the game is lost.

29 posted on 01/14/2006 2:02:34 PM PST by Dark Skies ("A lie gets halfway around the world before the truth has a chance to get its pants." -- Churchill)
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To: ProtectOurFreedom

York is using a Detroit auto biz style folksy mentoring, but threatening, speech. He can do the direct "Steve Miller" of Delphi talk when he decides to do so.

The repeats are also very important. If you want people to remember something it must be repeated in three or more different ways.


30 posted on 01/14/2006 2:10:43 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: Dark Skies
I totally agree with your approach. I was in the steel distribution business for 30+ years. One of our largest customers was General Electric. We sold them hundreds of thousand of tons of heavy steel plate. At the time, Neutron Jack was selling off dozens of product lines. His philosophy was simple. Recognize their CORE business, and if they were not among the most profitable GE's top three competitors, jettison that arm of GE's business. He had no broblem with bringing in demolition crews and knock down a 500,000 sq. ft. plant, bury it, and seed it over.

Hence his moniker as "Neutron Jack."

31 posted on 01/14/2006 2:20:34 PM PST by Cobra64
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To: RichardW
The scuttlebutt is that there is much owner dissatisfaction with transmission warranties (I suspect that the problems are with specific transmissions). Odd hinge breaking causing stuff to fall off. Owners complaining parts generally less good than even two years ago. I only hear rumors.

Mustangs selling very well with happy buyers.

32 posted on 01/14/2006 2:28:53 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: Dark Skies

What you say is the truth. My position is that General Motors will be extremely different if it is in business in ten years. Without really serious change the only thing of value are IP, copyrights, and trademarks.


33 posted on 01/14/2006 2:36:24 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: Cobra64
What you are describing as the "Neutron Jack" style is what York is insisting will happen. This speech leaves unspoken but obvious Kerkorian's "my way or the highway."
34 posted on 01/14/2006 2:44:34 PM PST by Iris7 (Dare to be pigheaded! Stubborn! "Tolerance" is not a virtue!)
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To: mo

GM topped that by spending $2 billion to buy 20 percent of Fiat, then another $2 billion not to buy 20 percent of Fiat.


35 posted on 01/14/2006 2:47:59 PM PST by Eric in the Ozarks (Don't buy Bose. Their warranty is no good.)
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To: Iris7

I've got a solution: A moritorium on the UAW for five years.


36 posted on 01/14/2006 2:49:43 PM PST by Brilliant
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To: Iris7

Tks for the ping. Was a great read.
I for one have written off GM until after it emerges from t for until afthe bankruptcy court. What emerges will not be the GM we know.


37 posted on 01/14/2006 3:04:43 PM PST by voletti (Where there is no justice, there is only revenge.)
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To: Iris7

One thing I would recommend to G.M. would be naming Roger Pensky as head of G.M.


38 posted on 01/14/2006 3:34:55 PM PST by oldtimer2 (Liberal: a power worshipper without power....George Orwell)
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To: Iris7

I would modify that suggestion as follows:

Chevrolet - Corvette and Camaro
Pontiac - GTO(redesigned body) and Soltice(with LS2 option)


39 posted on 01/14/2006 3:47:41 PM PST by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Iris7

Is there an executive summary ?


40 posted on 01/14/2006 4:00:55 PM PST by festus (The constitution may be flawed but its a whole lot better than what we have now.)
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