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Comments
Rocky
You give me too much credit. I'm really just relating strategies that are commonly used to turnaround failing enterprises, both inside and outside the automobile industry. These tactics have been used time and time again, and have been proven to work, so there's no reason why GM should be an exception.
What GM really needs is a CEO who has experience in turning around large ailing companies, rather than lifers who fail to comprehend the depth of the current crisis, teamed up with someone else who has a keen understanding of complex manufacturing.
Pretty soon, we're going to see how bad things really are over there, because the profits from GMAC that hid the bleeding will no longer be there to cover up the many mistakes made in the automaking business. I don't see how someone who has spent his entire post-MBA career at GM (Wagoner), who has driven many of the very policies that have created these current problems, can possibly be expected to create positive change. If the stock price means anything, investors don't have faith in him, either.
The reality is going to hurt me so bad. It's really is going to be hard for me to swallow. I am and feel powerless
Rocky
:sick:
http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20060418/METRO/604180370
If this is true, it's to bad a warrior of american unions had to end up in Japan. :sick:
30 years of leads: Other Hoffa tips
http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20060418/METRO/604180341
Rocky
And to top it off, the full size domestics are not that far behind the Tacomas and Frontiers for fuel mileage.
They need to eliminate Saturn since it only competes with Chevy and not the imports. Currently, there is no product in Saturns lineup that competes well outside of GM
I am not necessarily a fan of Saturn, but I disagree with dumping them. Every sale that Saturn takes away from Chevy is not only still a sale for GM, but it is also a sale that did not go to the imports.
Finally, eliminate the rebates. By offering $2k and $3k rebates, you are simply admitting that your vehicles are not as good as the competition and lowering your profits.
That is the big one. What did offering employee pricing do for GM (or the other 2)? It told America that the product is not worth full price. It also let out the message that the big 3 are very desperate. And the profits took a huge hit. Sure the sales numbers looked good, but after the sale, the fun was over. Back to reality. I am only guessing, but I bet 90% of the people who bought during the sale would have bought the same vehicle and intended to do it within 6 months anyway. I know 2 people that took advantage. My sister had mentioned buying during the period 6 months before the sale was announced and my buddy was starting a business that required an Astro commercial so he had no choice. The only change was that he bought early to get the price.
Rocky
And to top it off, the full size domestics are not that far behind the Tacomas and Frontiers for fuel mileage.
That's not really the issue. I haven't seen anyone suggest that GM stop making trucks, just that it not put all of its eggs into one basket. Particularly when that basket has a loose handle and a few holes in it.
Every sale that Saturn takes away from Chevy is not only still a sale for GM, but it is also a sale that did not go to the imports.
The problem with Saturn is that it is yet another bad badge. GM needs strong nameplates and badges that add equity to the purchase, so that customers willingly pay higher prices.
In my opinion, the only badges of any value at this point are Hummer, GMC, Cadillac and (arguably) Saab. The only nameplates of any real merit are Corvette, Camaro, Suburban and a few of the other trucks. Everything else is a liability -- the Chevy bowtie probably helps to lose more sales than it gains.
Companies that sell branded products need strong brands. GM has brands that are not only weak, but probably actually repel retail sales. (Avis is not as picky as is the average consumer.) Just as Toyota invented two badges that could attract specific kinds of customers (Lexus and Scion), GM needs to do something similar. In the case of GM, it might be best to just simplify and start over.
Uncle Bob says him and Uncle Rick are going to create the biggest turn around in corporate history. :confuse:
God I pray he is not blowing smoke up my shorts :sick:
I can pray right ? I will keep praying.
Rocky
Wall Street is all wrong, vice chairman says; Chapter 11 bankruptcy is 'out of the question.'
NEW YORK -- General Motors Corp.'s top product executive came out swinging Wednesday in the heart of the financial world, dressing down Wall Street critics who say the automaker is headed for bankruptcy, defending embattled GM Chairman Rick Wagoner and predicting the automaker is poised for a historic comeback.
Vice Chairman Robert Lutz said a Chapter 11 bankruptcy filing is "out of the question" and that he "absolutely refuses to believe" there will be a strike at key supplier Delphi Corp. because the consequences would be too great for all.
Predicting that in four to five years GM will be in far better shape, Lutz used a platform at the New York International Auto Show to rail against naysayers who he claims are ignoring the progress GM has made in turning around its North American auto business. He singled out New York-based financial analysts for creating and fueling the "fiction" that GM is bankruptcy bound.
"Most of the analysts living in New York don't even own cars, and have never even visited one of our dealerships," he said.
Lutz further suggested that Wall Street analysts may have profit motives for casting doubt on GM's future.
"At some point, I start to question whether they're holding short positions on the stock," he said, referring to the practice of betting that a stock price will fall over a short period in hopes of collecting on the back end.
Lutz's comments are the most pointed to date from a GM executive in defense of the struggling automaker. And they highlight a criticism that Detroit automakers often raise of auto analysts: that they are too far removed to know what's really going on.
But analysts say they have played a valuable role that executives may not acknowledge.
"Without pressure from Wall Street, they would never have got things moving," said Brad Rubin, an industry analyst with BNP Paribas in New York. "It took Wall Street to wake them up."
A good example of how unrealistic GM management has been came early last year when GM projected it would turn a solid profit, but instead lost $10.6 billion.
After the loss, GM intensified a sweeping overhaul of its North American auto business, which has been plagued by a decline in sales of its profit-rich SUVs, increased foreign competition and crushing obligations to retirees.
GM plans to close or downsize 12 facilities and slash 30,000 hourly jobs by 2008, shift more health care costs to retired factory workers and pare back pensions for salaried employees.
Industry analysts, though, point out that GM still has many serious problems to resolve.
Chief among them is the possibility of a strike at Delphi, GM's largest parts supplier.
Spun off from GM in 1999, Delphi filed for bankruptcy in October and last month riled its unions representing its 33,000 hourly workers by filing a court motion to terminate its labor contracts. With tensions high, the situation could blow up into a strike that could shut down both Delphi and GM in a matter of days, though the companies pledge to reach an agreement that avoids that outcome.
Until there is a deal, there will continue to be speculation about a GM bankruptcy, said Jeremy Anwyl, president of Santa Monica, Calif.-based Edmunds.com, an industry research firm.
"They don't want to file, but the question analysts are asking is 'Would they be forced to by events beyond their control?' "
At a minimum, GM estimates it will have to pay between $5.5 billion and $12 billion to cover post-retirement benefits for former workers at Delphi. In anticipation of the hit, the company has raised cash by selling a majority stake in its profitable GMAC finance arm and unwinding other partnerships.
GM also says a list of cost-cutting moves under its North American turnaround plan will help it reduce overall costs by $7 billion beginning next year.
"Soon, all will be revealed to you," Lutz told reporters. "And the last skeptic in America will be convinced that we are well on the way to recovery. GM has its best days ahead of it."
He said Wagoner will be praised for engineering one of the biggest corporate turnarounds in history.
"General Motors will come back and blossom like never before, and Rick Wagoner will be the celebrated hero at the head of the company," Lutz said.
Wagoner has come under fire for GM's latest financial losses, and speculation has been rampant that his days atop GM are numbered. Last month, the company's board gave him a public vote of confidence, reportedly at Wagoner's request. GM dealers last week ran a full-page ad in the Wall Street Journal backing Wagoner.
"I've worked for a lot of CEOs in my life, including some who are very famous and wrote books," Lutz said, in a reference to former Chrysler Corp. Chairman Lee Iacocca.
"And Rick is the best, most stable, most thoughtful guy I have ever worked for. He's not dramatic. But he gets the job done."
Due in part to the bullish comments from Lutz, GM's stock jumped more than 4 percent to close at $20.03 Wednesday and helped send the Dow Jones Industrial Average over 11,000.
Despite Lutz's claim that GM's darkest days are past, the company faces big obstacles as it renegotiates a crucial United Auto Workers contract in 2007, introduces vital new pickups and waits for cost-cutting measures to take hold, said Glenn Reynolds, president of New York-based CreditSights.
"The worst behind them?" he said. "Not unless he just took the time machine to early 2008."
He was a great CEO that had morales and I can actually respect him.
Rocky
http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20060419/AUTO01/604190378/- 1148
Rocky
"That would be a bit like trying to talk sense with Mussolini about the problems with fascism -- he won't listen. No point in listening, when he has the lackeys serving him the Kool Aid, assuring him that everything is just fine the way things are now"
I am glad you readily admit that your influence or opinions would be of no impact (REAL WORLD). This has become simply a debate. Your ideas are that of a theorist. (I could define a solution to global hunger and proverty with that mindset).
I really think that the inference that Wagoner is a "Mussolini" and the corporate structure is fascistic is a bit of a stretch. Yes,even a stretch for you.
As for your comments, may I suggest you read T.S. Elliot's "The Hollow Men ". All your rantings are reflected here and your eventual contribution reduced to the last few lines in this piece.
As I have said before it is MUCH easier to SAY than to DO !
http://www.washingtonfreepress.org/73/gasEngineUseDiesel.htm
http://www.gizmag.com/go/4695/
Assuming that you were a GM employee as you've indicated, you have provided a good insight of why that ship could very likely go down. The company is headed over a cliff, yet the white-collar types seem bound and determined to blame the underlings, rather than implement a solution, as if blame would ever do anything to bring cash into the door or make customers happy.
Again, you already have examples within and outside the auto industry that makes it obvious what needs to happen. In order to bring back customers and increase sales, GM needs products that people will willingly purchase at retail. Consumers simply couldn't care less whether there is a union or not, all they want are good products that meet their needs. Looking at the current GM product lineup makes it obvious that GM management doesn't have a clue of how to get there.
http://www.chron.com/disp/story.mpl/ap/fn/3801974.html
http://abcnews.go.com/Business/wireStory?id=1857063
http://www.latimes.com/business/la-fi-ford19apr19,1,1210660.story?coll=la-headli- nes-business&ctrack=1&cset=true
I work at GM
I'm building cars at a loss
I got Crazy Rick and Maximum Bob for a boss
Things are going bad, and they're only getting worse
I'm just hanging in there, and things are getting tight
The future's so dark, I gotta carry a flashlight
I've only got McJobs to look toward after the layoff
Fifteen thou a year -- only gets you ramen noodles
Things are pretty bad, and they're only getting worse
I'm barely hanging in there, and things are really tight
The future's so dark, I gotta carry a flashlight
Well I'm heavily indebted and buried in bills
I'm a working-class slob with no marketable skills
Things are really bad, and they're only getting worse
I'm down and out and life really bites
The future's so dark, I gotta carry a flashlight
I now work at Wal-Mart
As a loser in a blue smock
Drug dealers and prostitutes have taken over my block
Things couldn't get worse, and they're not gonna get better
My ex co-workers are shootin' up or slingin' rocks
I've got no future
And gotta carry a Glock
ouch. :surprise:
Hmmmmm, perhaps that's part of the problem....? :confuse:
I wonder what happened to all the guys making wagon wheels when Henry Ford started mass producing the Model T? Skilled labor can find a job if they are willing to get off the couch or out of the rubber room. Try finding a plumber, electrician, AC repairman in SoCAL. Skilled labor will be in strong demand over at least the next decade. No one wants to get their hands dirty is the problem. Everyone wants a job that pays 60 grand sitting on the computer blogging on Edmund's.
Interesting article today in the WSJ's opinion section from the CEO of Lockheed Martin regarding the demand for engineering students from the US. Lockheed Martin currently needs to hire over 44,000 employees over the next 3 years and possibly up to 144,000 over the next decade to replace retiring employees and this is just one company.
I feel sorry for the poor students wasting their money to earn engineering degrees, just no opportunities. B.S.
I can post the article if anyone wants to read it.
there is direct correlation between initial quality and long term dependibility.
Horse pucky - on several levels.
First, the lion's share of UAW assembly line workers are NOT "master machinist or skilled tool and die men".
Second, I've heard indications that the needs for skilled machinists will GROW in this country, not decline, regardless of what happens with GM. I'll have to do some research to back that up.
edit: here's something which talks about the coming labor SHORTAGE for SKILLED LABOR in Detroit:
http://www.msnbc.msn.com/id/10097038/
That is the best thing I've ever read on here. You need to get that published.
Rocky
Rocky
Rocky
IF GM is ALLOWED to set the standards for acceptance of new employment AND labor rules (as has TOYOTA,HONDA et.al.) the corporation will be fine in the future . The caliber of the worker will go up a few notches...as will the attitudes.Sales,quality and profits will climb accordingly.
Unfortunately, the carry over from closed plants will prevent this. Again UAW contract agreements become an issue.
Check into the hiring practices of these firms,I have. You might REALLY be surprised, if not in awe. I can just see an ACLU suite if GM tried it. Change will have to happen at ALL levels not just top management. It is not a singular issue as some would have you believe.
Just for the record. Although I may be optimistic in my opinion of the final outcome of GM, I know I am pragmatic in matters of execution of any change !
Maybe they offer some type of scholarship and/or internship, I don't know. My wife's employer (I won't mention the company) helped pay for her pharmacy degree. They didn't pay all of it, but it certainly helped, and she has been employed with the same company since she was 17. Her employer still offers scholarships and and sign on bonus's for new hires up to $20k.
Lots of companies offer help thru scholarships and internships, when I was in college, I knew many students that received help from the likes or Roadway, GE, Eli Lilly, Abbot Labs, Motorola, Aurthur Anderson (this was before they went down with Enron), and the military etc.
It used to be if dad worked at GM, his son could get a job and odds were his son would be a proud factory worker since that's what dad did. Dad also had a reputation to keep and would correct his son if he ever became lazy. This was when GM got their best employees. Family
Today they hire employees in many cases through a hirring agency. When my aunt went for her interview 2 1/2 hours away in Lansing, this one female said if I got to cut my nails, I don't want the job. Guess who got hired ? It was the minority female that refused to cut her nails. :mad:
So yes the ACLU doesn't help the situation george. I'm not sure how GM can fight against this. One way is to hire like they used to, family
Rocky
Rocky
Delphi OTOH has hired, but most of them will be laid-off and the employees were blackmailed and plant closings were never disclosed to them. :mad:
Rocky
P.S.
I'm glad I didn't chance it.
And you act like EVERYONE who works at GM (and by extension Ford/DCX) are skilled machinists who can ONLY find employment in a Union shop and NOWHERE else.
What the article I linked to pointed out was that the Domestic Auto Industry is forecasting a SHORTAGE of skilled labor. Not a surplus of skilled labor (ie. too many machinist wandering around trying to find work but having to settle for a job as a WalMart greeter). That line is B.S. rock.
Toyota, I know is having a hard time finding tool and die workers for their new San Antonio, Tx. Truck Plant. I think one of the problems for the shortage, is employers are willing to pay more for a employee who already possess that skill, rather than train him/her.
Rocky
Yeah, must be those evil, evil management types that want to hire dedicated self-starters rather than H.S. graduates looking for someone ELSE to be responsible for their continuing education. :P
Rocky
My experience is in the chemical industry and as an engineer. My observations are that the large companies hire new and experienced engineers to introduce "change" (the analogy to the car market being new car models and streamlined assembly techniques). The unions that I have seen are generally comprised of people with an average age of 50 that have been doing the same thing for many, many years. The age is high because when layoffs come, the ones with the least seniority go. There is a strong resistance to change due to a comfort level and a sheer inability to learn anything new in addition to a resentment of the parent company. I suspect the union at GM is comprised of 50 year olds that don't want to do anything new. Consequently, the engineering staff is stifled and ineffective and has to do many workarounds due to laziness and obstinance. Management typically cowers and slightly sides with the union to avoid "political conflict" leaving the engineers embarrassed of their product. I suppose some of the good ones quit in the automobile industry and the others simply adopt to the pace and succumb to the ineffectiveness because it takes a lot of energy to drive projects. Of course, this is all speculation. GM might just be hiring incompetents or brow-beating the competent ones because their projects cost too much.
Rocky
Rocky
Rocky
"You act like just anyone can walk in the door and start making parts on the line."
from your post above:
"Skill Trades usually get employer paid training..."
Okay, I can admit when I'm wrong. Apparently, they DON'T just walk in the door and start making parts on the line. Apparently, they walk in the door, receive employer paid training, and THEN start making parts on the line.
Thanks for clarifying that for me, rock....
I give up . :sick:
Rocky
Hogwash ! You would be a piece of fresh meat in a disgruntled automotive industry.
They do not have a position in GM titled :
"Absolute Bevolent Dictator "
Sorry, that is reality not ego.