Is Rick a d _ _ k or is Lutz a putz?



Huge news out of GM this week has the spies predictions unfolding EXACTLY like we told you they would.

These guys have BIG problems and NO solution.

It's all about products and they don't have the products people want.

Here's a great take on the current situation on GM and how these announcements will effect the future at the 'Tubes'.

From our friends at Autoextremist:

"The Rick" makes his move, but will it really make a difference?

Detroit. In the classic coming of age movie, "Risky Business," the constant thread/catchphrase uttered by Tom Cruise and his buddies was, "Sometimes you just have to say what the f---, and make your move." It resulted in all kinds of comical mayhem throughout the movie, but in the end it worked out for all concerned, for the most part - on several different levels. Two days ago, Rick Wagoner, Chairman and CEO of General Motors, decided it was time to make his move, but whether or not it will work out for all concerned is highly debatable.

Full article here

993Turbo993Turbo - 4/8/2005 6:26:45 AM
+1 Boost
Ditto!


JMd71JMd71 - 4/8/2005 10:36:32 AM
+1 Boost
GM needs to start thinking like an agile, small company, not the big slug they are now. Marketing campaigns and rebates bring the customers, but well designed and well executed models spread the ultimate advertising - word of mouth. Seriously, why can't GM make a nice looking car (inside AND out) that runs well and is well built? Just about every other maker is.


Osprey1Osprey1 - 4/8/2005 5:46:35 PM
+1 Boost
It is interesting to note that only 10 years ago, neither I nor any of my closest friends drove anything but American cars. Part of it was the fact that we live in a rural area with no non American dealerships. That is the only thing still the same. Now, none of us drive American cars. Two drive BMW's, one drives a Mercedes and two drive Infiniti's. It wasn't a conspiracy or anything like that, it just happened. We are all well educated professionals who simply got tired of the garbage GM, Ford, and Chrysler were trying to foist off on us. I know that we are far from unusual and GM and the rest should pay careful attention. We would rather put up with the inconvenience of driving 170 miles to have our cars serviced than drive the mediocre products they have to offer. Chrysler and Cadillac are starting to get it but in GM's case, it might be to little to late.


MercBasherMercBasher - 4/9/2005 7:02:39 PM
+1 Boost
Quick answer both.

Long answer:

GMs decline is a very sad story - but the future could be worse. The GM executives appear to be incompetent, in denial and lashing out at bad press and alleged currency woes.

Well folks the press wouldn't be bad if GM had better decision-making, and as for the currency woes well the dollar is so cheap right now its the US-based manufacturers who should be taking over the western world with their vehicles.

GM's executives are a disgrace, however the real blame lies with the Board of Directors and the large Institutional Shareholders. They appear to be content with the Status Quo.

If the Board and Institutional Shareholders are not willing to replace the GM executive team then I see nothing but an accelerating decline in GM's position.

As others have highlighted - if GM's executives were running a sports team they would have been replaced and chased out of Detroit a long, long time ago.

I urge, WHERE LEGAL, that the GM unions get into direct talks with GMs largest Institutional Shareholders. By-pass the existing GM executives and create a shadow leadership team, then collect sufficient shareholder signatures to put the shadow team up for shareholder election.

I believe in free trade, but I believe executives who - (i.) demonstrate incompetence (ii.) suffer from "bad luck" and poor results (iii.) deny the magnitude of change necessary - should be replaced and quickly.

If the Investors and Unions can work together then here are some things I would expect from a better managed GM:
(a.) a reduction in the number of US brands, and in the number of badge-engineered products -
(b.) a sale of unnecessary assets and brands - sell Saab, Subaru and Daewoo holdings and use the funds for . . .
(c.) a better balanced and more interesting new product pipeline - while gas prices soar, can you believe that GM is stopping work on a new line of rear wheel drive sedans in order to focus exclusively on large SUVs?
(d.) products that are more competitive - this means modern engines, nicer interiors, more frequent generational changes
(e.) Save millions in marketing by phasing out Hummer, Buick, Saturn brands. Change Hummer badging to GMC, keep the best Buick and Saturn vehicles and make them Chevrolets or Pontiacs. Cut the rest.

One of the more significant keys to better performance at GM is to frequently introduce vehicles that the public wants. Unfortunately, the existing executives have shown they can't do this - they should go now, and in shame, before they further damage this once fine institution.

Every time I read an article that says Lutz and other GM executives are frustrated at the "bad press" GM receives - I get outraged. Why can't they see what others do - which is the bad press is warranted?






Homer008Homer008 - 4/10/2005 2:37:23 AM
+1 Boost
I agree with Reality Hit's comment 100%.

GM makes bad cars. No excuses. Just plain bad cars. Now beside making bad cars, I read an article about what seems to everyone a bizarre story almost as bad as Michael Jackson's.
It was where GM purchased portion of Fiat company for around 2 billion dollars!!!!! Lots of money right? okay it gets weirder. GM didn't like Fiat a few years later. So GM says I want a divorce. Fiat says to GM that 2 billion more dollars and we'll divorce you. GM paid another 2 billion dollars to Fiat again totalling morethan 4 billion dollars!!!!!! Then story gets even stranger as GM's reason for purchase of Fiat. Something called diesel engine technology from Fiat!!!! A diesel???? for 4 Billion dollars!!! Unrelated story to this bizarre news is that some investors are smelling that GM is going to go belly-up meaning..see ya dummy!


Homer008Homer008 - 4/10/2005 2:37:23 AM
+1 Boost
I agree with Reality Hit's comment 100%.

GM makes bad cars. No excuses. Just plain bad cars. Now beside making bad cars, I read an article about what seems to everyone a bizarre story almost as bad as Michael Jackson's.
It was where GM purchased portion of Fiat company for around 2 billion dollars!!!!! Lots of money right? okay it gets weirder. GM didn't like Fiat a few years later. So GM says I want a divorce. Fiat says to GM that 2 billion more dollars and we'll divorce you. GM paid another 2 billion dollars to Fiat again totalling morethan 4 billion dollars!!!!!! Then story gets even stranger as GM's reason for purchase of Fiat. Something called diesel engine technology from Fiat!!!! A diesel???? for 4 Billion dollars!!! Unrelated story to this bizarre news is that some investors are smelling that GM is going to go belly-up meaning..see ya dummy!


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