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Old 03-23-2011, 07:27 PM   #34
Mr. Wyndham
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Quote:
Originally Posted by Number 3 View Post
Ok, I'll give you my opinion based on the leadership messages I've head (that I can share) and some clarifications to the article.

Here is the article with my comments in BOLD:

Last fall, the road ahead looked smooth for General Motors.

Just over a year since it sank into government-run bankruptcy, a leaner, meaner automaker relisted its shares on major world stock exchanges, bursting back onto the investment scene with the world’s largest initial public offering.

Nothing has changed since then, just some people. Remember how 6 months or so ago it seemed Marketing had a new head every 6 weeks? That has settled down and you now see (at least I do) a cleaner, clearer picture of GM and it's core brands.

But just four months later some industry observers are expressing concern that the company's new driver, CEO Daniel Akerson, is unfamiliar with the car market terrain and could steer GM into a ditch.

Critics contend Akerson, a former telecommunications executive, is surrounding himself with agreeable subordinates from similar backgrounds, focusing too much on cost-cutting and relying heavily on incentives, such as rebates, to artificially inflate sales at the expense of profits and brand image.

He is surrounding himself with people that don't say, "it can't be done". He wants people to tell him, "here is what we have to do in order to be successfull", even if that is monumental, that's what he exects to hear. From his experience in telecom? Maybe. But he is now driving higher performance with higher expectations.

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Adding to the concern: The sudden departure this month of GM’s finance chief Chris Liddell after barely a year on the job. Liddell shepherded GM through its record $23 billion IPO last November, and his departure renewed concerns about GM’s stability and performance that many analysts had credited the automaker with having put behind it in recent months. The company has had four chief executives in the past two years.

As I heard it, Chris Liddell was supposed to get the CEO job. He didn't, Ackerson did and is staying. Would you stay if you were passed over for CEO and could go elsewhere and land that job? Yeah, you would too.

“I’ve seen this movie before, and it doesn’t end well,” longtime Detroit adman Peter Delorenzo said his blog, autoextremist.com.

Ummmmm, Peter, I read your stuff. Sometimes..............sometimes you are right. But I'm glad you've seen this before. Must mean this is one of those times.

Things have certainly looked upbeat for GM of late.

In the opening months of 2011 sales of GM’s cars and trucks have surged, as the company grabbed market share from its rivals, according to sales data from J.D. Power and Associates. That would appear to bode well for the company’s future, and with it, the potential for U.S. taxpayers to recover the remainder of their investment in the company.


So not quite buying it.
Thanks for the input, 3.

The way I see it -- Market Share shouldn't be the top concern. Building the best cars and trucks should be...and it seems to be. Every single release since...oh about ~07-08 has been a homerun, smash hit! Heck -- the Cruze is hundreds of units a month away from outselling the longtime compact champion, the civic.

That said -- there are still plenty skeptical and willing to dislike/overlook GM cars and trucks for no real good reason...as this article illustrates. How do you drive those people into dealers get them into one of your cars to change their minds? Be cheaper than the other guy! That's the only language some of these A-B car buyers understand...

I'd like to see incentives pulled back a little....but then I'm not an industry expert. And they are profitable...big time. So what's the issue?
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