N.Y. Times: G.M.’s Secret Success

[camaro5]

WITH billions of federal dollars flowing to General Motors, and with the incoming administration likely to discover that still more assistance is required, we can expect renewed calls for G.M.’s chief executive, Rick Wagoner, to lose his job as the price of failure. This view presupposes that Mr. Wagoner has not been willing to bring G.M. into line with the new global reality, that he has not designed cars Americans want to buy and that the company is a “dinosaur,” to quote Senator Richard C. Shelby, Republican of Alabama.

In reality, Mr. Wagoner has presided over the most sweeping transformation of G.M. since the 1920s. He has reversed management’s long practice of meekly going along with the demands of the United Auto Workers, notably with a deal to transfer health care costs to a union-controlled trust over the next two years.

During his tenure, as president, then as chief executive, Mr. Wagoner also put in place a previously unthinkable two-tier wage system to reduce the company’s average cost per worker; halved the company’s unionized work force in the United States through layoffs and plant closures; spun off Delphi Corporation, its largest parts supplier; and sold controlling interest of GMAC, its financing arm.

A decade ago, suggesting that Mr. Wagoner attempt these restructuring goals would have been ridiculed as unrealistic. But these moves have largely succeeded and by 2010 should strip $5,000 from the cost of every G.M. vehicle.

The company has made enormous strides in imitating and improving upon Toyota’s lean manufacturing system. At G.M. plants, gone are the mass assembly techniques pioneered by Henry Ford. Instead, workers are organized in small Japanese-style teams and encouraged to make sure problems are fixed on the spot rather than passed down the line. The quality gap between G.M. and Toyota has been closed.

Mr. Wagoner has allowed his designers to recapture car design leadership with products like the Cadillac CTS, the Saturn Aura, the new Chevrolet Malibu and the revived and visually dazzling Camaro. The cliché that G.M. makes only gas-guzzling sport utility vehicles is years out of date.

On the innovation front, Mr. Wagoner was responsible for introducing OnStar, the onboard communications and navigation system, and he has made a huge commitment to lithium-ion batteries, which will power the Chevrolet Volt, an extended-range electric vehicle. If the Obama administration wants to create new “green” industries here in the United States, these batteries represent a potential $150-billion-a-year opportunity.

Lastly, Mr. Wagoner has globalized G.M. to a degree that it never has been before. The company’s strong position in China has helped support the difficult turnaround effort in North America.

Before the financial crisis tanked American automotive sales, Mr. Wagoner had almost guided the country’s largest industrial company into a new era, demonstrating great resilience in the face of intense global competition. Making him a scapegoat might be politically expedient but it ignores the very tangible progress he has achieved.

William J. Holstein is the author of the forthcoming “Why G.M. Matters: Inside the Race to Transform an American Icon.”

http://www.nytimes.com/2009/01/03/op...ml?ref=opinion

[Hylton]

I like him but Wagoner has to go. Todays successful global businesses need to be dynamic in a constantly changing world. Difficult to do when you have an "up from the ranks" guy running the biz.

GM needs an outsider who can bring new ideas and concepts into the company. Someone with experience managing a global company who has had to merge various international divisions while not impacting daily sales. Besides, should we really reward someone who is just fixing his wrong doings anyway?

[ArcAngel]

You know its always easy to judge when your not in a mans shoes!

[Hylton]

^ GM has 700 billion dollars of debt and is widely viewed as one of the worst run auto companies in the world. Anyone running any publicly traded company is going to be held accountable. Welcome to capitalism my freind. Your point is?

[Angrybird 12]

Originally Posted by Hylton

I like him but Wagoner has to go. Todays successful global businesses need to be dynamic in a constantly changing world. Difficult to do when you have an "up from the ranks" guy running the biz.

GM needs an outsider who can bring new ideas and concepts into the company. Someone with experience managing a global company who has had to merge various international divisions while not impacting daily sales. Besides, should we really reward someone who is just fixing his wrong doings anyway?

What do you mean by "Outsider"???
Someone outside of GM or Outside the Auto Industry?

From what Wagoner has done in the last few years it seems like he has done exactly what you are asking for. New Ideas and Concepts..merging international divisions....You know what they say about changing horses in the middle of the stream don't you?.. What more do you want?

GM has 700 billion dollars of debt and is widely viewed as one of the worst run auto companies in the world. Anyone running any publicly traded company is going to be held accountable.

Do you not know it costs money to make changes? it cost money to close plants and divisions, (like Oldsmobile), It costs money to restructure. that is where the debt is coming from... ANYONE that tries to restructure GM is going to run into the same problems. I Would rather have someone from the Inside try to restructure the company than from someone that has not a clue to what has been going on to come in and start from scratch try to fix things.

[Hylton]

Originally Posted by Skyman 08

What do you mean by "Outsider"???
Someone outside of GM or Outside the Auto Industry?

From what Wagoner has done in the last few years it seems like he has done exactly what you are asking for. New Ideas and Concepts..merging international divisions....You know what they say about changing horses in the middle of the stream don't you?.. What more do you want?

Yes, outside the auto industry. Ford brought in the former CEO of Boeing. We have seen great changes in the companies products being offered but that is only a small part of the business. I want to see what thay will announce next month with respect to reducing debt by 500 billion (as required by govt. bail out), dealer network and brand consolidation.

Many people on this board think of GM only as a North American company and don't look at the billlions of dollars spent globally on repetitive BS. Vauxhaul, Opel and Holden also need to be consolidated in the new GM. Anywhere you go in the world, a Toyota Corolla is a Toyota Corolla. At GM, the european division has to justify it's existence by taking a Chevy platform and changing everything to make it look different and calling it something else and visa-versa. Total waste.

[Hylton]

Originally Posted by Skyman 08

Do you not know it costs money to make changes? it cost money to close plants and divisions, (like Oldsmobile), It costs money to restructure. that is where the debt is coming from... ANYONE that tries to restructure GM is going to run into the same problems. I Would rather have someone from the Inside try to restructure the company than from someone that has not a clue to what has been going on to come in and start from scratch try to fix things.

Do you know it costs more money to keep things status quo than it does to make changes? Status quo has done far more damage to GM than the current economical downturn. 700 billion dollars is from restructuring? No way! It's obsurd for any company on the planet to think they can remain viable with that much debt. Take a moment to calculate how many cars GM must sell every year in order to service that debt. You'll quickly realize that even if they double car sales next year, they will still not be able to make money.

[ArcAngel]

All i am saying is perception isnt always reality my friend

[Hylton]

Originally Posted by ArcAngel

All i am saying is perception isnt always reality my friend

That works both ways.

[ArcAngel]

Yes it does..hahaha

[UCF w00t]

Originally Posted by Hylton

Many people on this board think of GM only as a North American company and don't look at the billlions of dollars spent globally on repetitive BS. Vauxhaul, Opel and Holden also need to be consolidated in the new GM. Anywhere you go in the world, a Toyota Corolla is a Toyota Corolla. At GM, the european division has to justify it's existence by taking a Chevy platform and changing everything to make it look different and calling it something else and visa-versa. Total waste.

How much world travelling have you done? Obviously not much. I've spent a decent amount of time in central and south america and I can assure you that cars from all manufacturers vary greatly in other countries. How many propane powered cars do you see here? How many diesel Toyota trucks are there? You could have at least gone to wikipedia before spouting off about the Corolla. Not to mention that the Corolla is a rarity in that it does carry it's nameplate worldwide more than any other car.

[Angrybird 12]

Originally Posted by Hylton

Do you know it costs more money to keep things status quo than it does to make changes? Status quo has done far more damage to GM than the current economical downturn. 700 billion dollars is from restructuring? No way! It's obsurd for any company on the planet to think they can remain viable with that much debt. Take a moment to calculate how many cars GM must sell every year in order to service that debt. You'll quickly realize that even if they double car sales next year, they will still not be able to make money.

And what will getting rid of Rick Wagoner do to help this?
Like it says in the artical He has made many CHANGES since he has been there, how is that keeping the "Status Quo" as you say..
Quality is better, More Cars with 30+mpg than ANYONE ELSE makes. New technologies, new cars, closing plants, cutting management positions, Re negotiating UAW contracts. Nothing in business comes quickly. You cannot change what has happened in over 40 years in just a few months, NOBODY could ever do that.

[Hylton]

Originally Posted by UCF w00t

How much world travelling have you done? Obviously not much.

Seriously - nothing on this board has made me laugh harder!! Thanks for that?

[UCF w00t]

Originally Posted by Hylton

Seriously - nothing on this board has made me laugh harder!! Thanks for that?

I assume that means you have done plenty of traveling. Then I guess you need to pay attention to the cars more next time? I would think you would also understand that people in different markets want different things.