Why Did GM Flush LA Auto Show Hype With An Ill Timed Ouster Of Their CEO?

General Motors Co.'s board of directors, ever anxious to show that they're driving the company's new Caddy, absolutely blew it on Tuesday when they forced out CEO Fritz Henderson. It doesn't matter how it all went down -- whether they asked Henderson to stay on for the rest of the year but he gave them the ziggy anyway, or if they asked him to immediately leave, or some other scenario -- GM saw millions of dollars washed away in lost media coverage of key new products, or at least diminished exposure, thanks to Henderson's resignation on the eve of media days at the Los Angeles Auto Show.

Instead of talking about the massive road show GM carefully orchestrated for the Chevrolet Volt that put actual drivable electric vehicles on the streets of Los Angeles, or the introduction of the U.S. version of the 40-miles-per-gallon Chevy Cruze, the buzz was -- and still is -- all about Henderson's departure.

Hear that flush? That's the sound of GM's lost opportunity at one of the most important auto shows outside Detroit.
 

dumpsty - 12/3/2009 11:07:58 AM

+2 Boost

I kinda agree with the article here.

This is the time of year where the industry should be 100% focused on GM's new and updated products. Allowing the departure of a top executive that's been so instrumental and visible in this tough era is a seemingly boneheaded decision to have made at this time.

The media/industry/financial speculators are now focused on who will replace Fritz. And knowing that the Chairman has very little experience in the auto industry, it shouldn't be a real surprise that many speculators are worried that GM will not have a competent leader at the helm.

?It can take a year to find a new GM CEO? Many financial or industry conditions can change in less than half that time. The combination of Fritz & Lutz was making some real accomplishments. I can't imagine that an outsider is going to do much better. And with a pay package limited to $500k/year. Time to look at some college grads.

freeagent - 12/3/2009 11:16:16 AM

+1 Boost

I'm afraid you nailed it. Not well thought through. You just can't make this stuff up. Good luck quickly finding an outsider with all the pay restrictions and an overeager Chairman. Ford is looking better and better.

theoptimisticpessimist - 12/3/2009 11:39:35 AM

+1 Boost

Let's see, the Saturn deal fell apart, the Opel deal fell apart, and the Saab deal fell apart, etc..... Why should this guy be CEO. GM take a look at Ford hire someone outside of the GM boardroom, you know, like a qualified CEO.

Hantra - 12/3/2009 12:19:51 PM

+2 Boost

It's because the company is being run by people who have no idea what they are doing. These government hacks have never lived in the real world, and have NO CLUE what it takes to manage a company that has to play by the rules. They are used to making up their own rules as they go along, and then breaking them.

Buzz from the inside is Fritz was canned because he wasn't "changing the culture" FAST enough. I believe this b/c the government asshats have no freaking idea what it takes to change the culture at a company.

If they had a clue, they'd know that a culture change takes even the most heroic executive team YEARS and YEARS to implement. . . IF it even works. . .

Freaking idiots man. . .