According to Alex Taylor of Fortune magazine, "the honeymoon is over" for GM's new CEO Ed Whitacre. He notes that members of the Motor City press became agitated over the latest round of management changes and have started to publicly question Whitacre's leadership.
Some reporters questioned whether moving around the same executives that got GM into its current mess was a viable plan for change while others looked skeptically at Whitacre's decision to bring in several of his former staffers at AT&T. Still others questioned whether he really knows what he's doing at all given his limited experience in the industry.
None of this is surprising really. GM's numerous management changes over the last several months give the appearance of desperation instead of a well-honed plan. Then there's the fact that Whitacre talks more about boosting sales that he does building better products. Not good.
It's all a little too reminiscent of the reign of President Ron Zarella, an executive who came to GM with no automotive experience and tried to turn it around by treating cars like any other consumer product. It was a disaster that has only recently been purged from GM's system.
So far, Whitacre hasn't really shown that he's anything more than a hired gun who's hoping to pump up the numbers and head for the door. After all, he still commutes to Detroit from Texas. How dedicated to your job as the CEO of GM can you be if you don't even live in Detroit?
The next six months or so will be critical for GM as it attempts to stabilize its position and absorb all the new changes. Only then will we see if Whitacre has what it takes to make a difference. Should be interesting.
fefan says:
06:46 AM, 03/13/10
Some of the managerial reorganization might be good, but ultimately Whitacre does not know the business and I have serious concerns about future product development at GM. Success in any manufacturing business is all about the product and associated services - produce good quality products that people want, run your business efficiently, service your customer well, and your business will flourish. Clearly, Whitacre is not a product guy...and that is not a good thing.
roadburner says:
07:31 AM, 03/13/10
Before the "It's no surprise, everybody in the media hates GM." comments come trickling in it should be noted that De Lorenzo is far from being an anti-GM hack. He actually wants GM to succeed but he thinks the company has a very narrow window of opportunity- and be believes Whitaker is squandering what little chance GM has. I recommend that everyone read De Lorenzo's article before discounting his comments in the Fortune story.
throwback says:
07:15 AM, 03/14/10
I agree with deLorenzo. Except for big Ed who does not know the business, it's the same execs who presided over one of the worst collapses in automotive history. Why would anyone think GM is going to make it? Monthly management changes don't instill confidence either.
stovt001 says:
03:54 PM, 03/14/10
I'm a DeLorenzo fan too, but like everything else there are multiple sides to the story. I generally agree with him, but sometimes he also randomly seems a little too old-school Detroit. Generally, I don't have a whole lot of faith in Whitacre, especially with the desperate and frantic management changes, but it is nice to see Alex Taylor's generally positive view of him contrasted to other more negative views.
bankerdanny says:
11:30 AM, 03/15/10
Roadburner is right, you need to read the article. It doesn't say that Whiteacre is wrong. Just that some of the automotive press isn't happy with him. The article seems pro Whiteacre for the most part.
zoomzoomn says:
12:08 PM, 03/15/10
I say give 'em some more taxpayer money to burn! That will fix everything. ;)
flicmod says:
01:17 PM, 03/15/10
DeLorenzo is definitely critical of Whitacre, no matter how you spin it. That much is true. I'd call him cautiously skeptical with a side of pessimism.
It's funny... DeLorenzo has trumpeted GM so much in the past, but in his open letter to Whitacre he's echoing so many comments that have been made by some here at Edmunds for the last 4 or 5 years (ie. GM needs to exceed the standards of their competitors in ALL respects to their products). That's not a bash against DeLorenzo. Just a matter-of-fact statement that shows how dire the situation is at GM.
Whitacre needs to succeed. Focusing on sales is not going to prove successful.
lmbvette says:
11:58 AM, 03/16/10
PDR is definitely not a fan of Big Ed.
As for how people think Big Ed is doing, I recall that a lot of these same criticisms were directed at Mullally when he took over Ford. Now, I'm not saying Ed is another Mullally, just making a point.