NEWSWEEK INTERVIEW: Rick Wagoner CEO of GM

[thegriffon]

NEWSWEEK INTERVIEW: Rick Wagoner CEO of General Motors

Feels 'Completely' Secure in His Job: 'I Know in the End, All of Us Are Going to be Judged on Accomplishments'

On Calls For 'New Blood' in GM Management: 'That Is So Simplistic ... That Would Be The Biggest Risk I've Ever Heard Of'

NEW YORK, April 2 /PRNewswire/ -- General Motors CEO Rick Wagoner tells Newsweek's Detroit Bureau Chief Keith Naughton he is particularly annoyed by critical media coverage that fails to acknowledge any progress at the troubled company. "They talk about that we are not moving to address the problems," he tells Naughton in the April 10 issue (on newsstands Monday, April 3). "I want to say, 'Excuse me, what part of $15 billion in health care (cuts), 12 plants (closing), 30,000 people (cut), attrition programs, salaried health-care and retirement (cuts), salaried head-count reduction, a new sales and marketing strategy, advancing product programs-what part of that doesn't exhibit a sense of urgency in doing what matters?' What's frustrating to me is a lack of recognition of the progress."

In response to those who charge that because Wagoner grew up in GM culture he's incapable of the radical overhaul required and that new blood is needed, he says, "That is so simplistic. These are sophisticated problems with historical tails that run back 80, 90 years. The chance of someone coming in and understanding our business, making the right calls and doing them in cooperation with key constituencies like dealers and unions, is absolutely microscopic. That would be the biggest risk I've ever heard of."

So does Wagoner feel secure in his job? "Completely," he answers, "because I know in the end, all of us are going to be judged on accomplishments, whether we address issues and take advantage of opportunities. And I think we're moving on both fronts, frankly, pretty well. So I feel very confident."

Wagoner also responds to Jerry York's speech in which he said GM must go into "crisis mode." "It's easy to announce stuff. It's not so easy to do stuff, particularly if you can't do it yourself, if you've got to do it in cooperation or in conflict with unions, if you do it with Delphi, if you need partners to consider a partial sale of GMAC," says Wagoner. "What has been done in the last six months borders on unprecedented accomplishments and advances. This stuff didn't happen because someone decided on Jan. 15, why don't we do stuff? This stuff happens because we're working on it, we're ready to do it, we're talking to people and when we have it ready, we announce it."

(Read entire interview at www.Newsweek.com.)

Source: Newsweek

Edited April 2, 2006 by thegriffon

[Croc]

Excellent, excellent interview.

[ellives]

Go Rick go!

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Wagoner, 52, has kept a low profile as the criticism has mounted. But now he’s decid­ed to come out swinging. In an interview with NEWSWEEK, he offers a passionate defense of the job he’s doing and rejects the notion of replacing him with an outsider.

-----------------------

This is what he needs to do. Silence can be deadly. He needs to work harder than ever to get the message across as he is doing now. Remember a vacuum will be filled with SOMEthing. His just is to make sure it's filled with what people want to hear rather than what his enemies and pundits (media) what you to hear.

Edited April 2, 2006 by ellives

[wildcat]

thegriffon: Thank you for posting this!

Mr. Wagoner is in an extremely difficult position, and I'm glad that he has consented to be interviewed. I feel for him on many of the questions.

P.S. - I have unsubscribed from Buickman's website and e-mails. It just got to be too much to keep hearing.

[BigPontiac]

Good interview. It's nice to see Rick fighting back...

[Newbiewar]

Rick vrs Jim... who will win?

[ellives]

IS there an actual battle?

Rick vrs Jim... who will win?

[Simon C]

I had just posted on the article about last nights 60 Minutes show that I think Rick is THE guy. He does have the toughest job in America, and I think he'll right the ship. Don't forget, this is a huge "ship", and it will take time, but, he's the right "Captain".

[Guest buickman]

Showdown at Wilmington June 6, 2006

Buickman vs. Bankruptcyman

[w00t_man]

Buickman, i may only be 18, but i know a stuck up prick that's so full of himself that he can't help but resort to 3rd grade name-calling and insults when i see one. Get a life and act your age instead of your shoe size.

[jbartley]

Buickman, i may only be 18, but i know a stuck up prick that's so full of himself that he can't help but resort to 3rd grade name-calling and insults when i see one.  Get a life and act your age instead of your shoe size.

FO' REAL!

GO TEAM WAGONER!

[Guest buickman]

Blind faith in your leaders can get you killed (Vietnam).

[91z4me]

Go Rick!

Really, does anyone who is actually qualified for this job want to take on the burden Rick has?

[w00t_man]

Blind faith in your leaders can get you killed (Vietnam).

The draft-card burning hippies didn't help much either.

[jbartley]

Blind faith in your leaders can get you killed (Vietnam).

Ok that's crossing the line.

Vietnam and GM's current condition are hardly one and the same.

People still support GM, and wagoner & team are actually making a difference.

The same can't be said for lyndon b johnson's presidency or your self-righteous bull-$hit.

[Croc]

Where were you stationed in Vietnam, Buickman?

[Guest buickman]

I was 15 when it ended.

[Guest buickman]

Buickman, i may only be 18, but i know a stuck up prick that's so full of himself that he can't help but resort to 3rd grade name-calling and insults when i see one.  Get a life and act your age instead of your shoe size.

<{POST_SNAPBACK}>

Listen kid, I was leading the nation in car sales when you were in diapers. Wipe your nose, get an education and some experience, then talk to me.

Buickman

[Flybrian]

I'm not locking this thread because it has a credible premise, but I will delete posts. I'm serious. Respect is needed from all sides.

[Croc]

I was 15 when it ended.

Exactly, so you're really talking out of your butt on things you know absolutely nothing about, once again. I really don't care what you heard from Walter Cronkite, you were not there, you do not have access to internal documents, and you do not know what it was like.

I am not a war hawk, but I am also not a conspiracy theorist like you. The leaders of our nation are not intentionally leading us all to ruin; they really do have the nation's best interests at heart even though I may vehemently oppose their tactics or actions of accomplishing their goals. Vietnam was a new kind of war. The U.S. was not used to fighting a war like that; in many ways they still aren't fully up to the task. THAT SAID, the government is very much like a surgeon or doctor...even if the patient is likely not going to do well, they have an obligation to play up the positives because surgery, like war, is at least 50% mental. If you think you're going to win, you're more likely to triumph because the patients/public are more enthusiastic about the surgery/war and are more likely to give it their all when they are fighting the cancer/war.

Were we in Vietnam too long? Oh, most definitely, but the issue is not so black and white. There were many politically-charged issues with pulling out of the war: Americans had never really lost a war, except for the half of the nation that lost the Civil War. Also, pulling out would be a sign of weakness to our allies and other nations around the world. We were in the midst of a Cold War with Russia and had very little idea what was going on in their side of the Iron Curtain. We now know America was soundly advanced of the Soviets, but this was NOT known at the time, and it really was best to take a conservative approach that the Soviets could and would expand Communism in politically turmoiled nations, which at that time was a direct threat to American interests and the beginning of America's globalization.

Of course, I don't really expect you to understand the complex nature of the politics surrounding the Vietnam War because you have repeatedly demonstrated a severe lack of knowledge of the complexities involving the automotive industry, which in turn is infinitely less complicated than international politics during warfare.

[Guest buickman]

you have repeatedly demonstrated a severe lack of knowledge of the complexities involving the automotive industry

It's not that difficult. All it takes is a good car and someone who knows how to sell it. No one at the top of GM has ever, to my knowledge, retailed automobiles. That's how we end up with Red Tags in cars through the dead of winter, covered with snow. To say I don't understand the automobile business is rather foolish, sir.

Buickman

[sciguy_0504]

I'm not locking this thread because it has a credible premise, but I will delete posts. I'm serious. Respect is needed from all sides.

While Buickman can get annoying, the responses to him are just as annoying, if not more because they are downright disgusting. We all have our opinions about GM's management so both sides need to learn to respect them, please.

[91z4me]

you have repeatedly demonstrated a severe lack of knowledge of the complexities involving the automotive industry

It's not that difficult. All it takes is a good car and someone who knows how to sell it. No one at the top of GM has ever, to my knowledge, retailed automobiles. That's how we end up with Red Tags in cars through the dead of winter, covered with snow. To say I don't understand the automobile business is rather foolish, sir.

Buickman

Jim, I will say this with as much respect as I can. I hope that the leader of one of the largest companies in the US and likely the world doesn't put 'used car salesman' on his or her resume. That isn't really what I put next to Harvard MBA. The CEO of a company like GM doesn't have to understand retail sales. He has to produce the best product and it is up to the dealers, which I am sure you know, aren't owned by GM to sell the cars. If you want your plan to actually impact anything for GM then you need to go to the regional dealer bodies NOT GM corporate, this is like the 20th time I have said this and I would like for you to FINALLY read it.

[Croc]

All it takes is a good car

Does your Plan address this since you just acknowledged its necessity?

[Guest buickman]

Yes, it does. Please remember that what was released was only the first twenty steps of Return to Greatness.

[Guest buickman]

Jim, I will say this with as much respect as I can.  I hope that the leader of one of the largest companies in the US and likely the world doesn't put 'used car salesman' on his or her resume.  That isn't really what I put next to Harvard MBA.  The CEO of a company like GM doesn't have to understand retail sales.  He has to produce the best product and it is up to the dealers, which I am sure you know, aren't owned by GM to sell the cars.  If you want your plan to actually impact anything for GM then you need to go to the regional dealer bodies NOT GM corporate, this is like the 20th time I have said this and I would like for you to FINALLY read it.

<{POST_SNAPBACK}>

Let's reasonably realize that you can't grow the business by constantly doing surgery. So far we have hit organs(Olds) damaged bones (dealers) and killed nerves (employees). What is most needed today is a way to BUILD the business. In order to do that we MUST SELL CARS. Trouble is Lovejoy, Smith, and LaNeve have not been able to accomplish anything resembling a sales surge. Return to Greatness would do just that and for far less expenditure.

Buickman

[Croc]

Have you ever thought of becoming an Evangelical Christian Minister?

Edited April 4, 2006 by Croc

[Guest buickman]

Praise the Lord!

[w00t_man]

Listen kid, I was leading the nation in car sales when you were in diapers. Wipe your nose, get an education and some experience, then talk to me.

Buickman

Nose is fine, thanks. Education? I've scored a 33 on the ACT each time i've taken it. I'm going to college for free. Just because i'm 18 doesnt mean i'm mindless.

And it doesnt take experience to tell me when someone needs to cool it. You may have been leading the nation in car sales. I dont give a crap whether or not you can sell someone dehydrated water. Respect is respect, and you sir, dont know what that is.

[Guest buickman]

Untrue. I did not come here to insult, unfairly criticize, attack, demean, or disrespect. My intention is to add contributions based upon decades of successful experience in retailing automobiles and managing dealerships.

Buickman

[BigPontiac]

you have repeatedly demonstrated a severe lack of knowledge of the complexities involving the automotive industry

It's not that difficult. All it takes is a good car and someone who knows how to sell it. No one at the top of GM has ever, to my knowledge, retailed automobiles. That's how we end up with Red Tags in cars through the dead of winter, covered with snow. To say I don't understand the automobile business is rather foolish, sir.

Buickman

OR, once GM gets their "gotta have" product, a direct sales channel via the internet would simplify the sales process for those customers who would rather order their cars and not have to deal with the "dealer experience." Those buyers, primary Gen X and Gen Y, are completely comfortable buying everything over the internet. Traditional dealers would certainly not be replaced, but they would likely need to improve their quality and sales practices to survive. Couple the GM internet direct sales with your home delivery idea and you've got a winner...and odds are MANY of those buying direct would pay gladly MSRP! The perfect next step after viewing the Edmunds Head2Head comparison. Additionally, you could likely sell more consulting services to the reamaining dealers needing to improve their sales practices...

Disruptive Innovations are how you get high growth business. Disruptive Innovations require new distribution channels. Clayton Christensen has several books on the subject.

From a dealer's perspective this certainly doesn't sound appealing, but from a consumer's perspective it is VERY appealing. It would also help weed out the "MSRP adjusters" that added $5k to the hoods of the GTO, Solstice and now SKY.

[ShadowDog]

It's not that difficult. All it takes is a good car and someone who knows how to sell it.

???

That's your dumby-down version of the car industry? You can't simply suggest that everything can be cured purely from a sales perspective...even though it's apparent you have. When a peddler on a cart comes to town selling snake oil, people either learn what he's selling is crap, or their perception is skewed to believe that what they're buying is good for them while everyone else laughs at them for being so stupid. Welcome to the world of buying a GM.

It IS that difficult. Sell a million cars for $1000 that cost $999 to build and the only thing that looks excellent is sales. Sell as many as you damn-well want and be a results-on-paper-hero. How typical is it to read your salesmanship terminology in talking only about overall gross terms. The only thing I'm interested in is the NET result. THAT requires review of the complexity in the business as a whole...something I've yet to read in your opinion on what will fix things.

Your game is politics and ramblings hellbent on selling us on snake oil remedies. Please, put the gold pen down and explain just how your ideas could be implemented and carried through, given the complexity that really exists in the operational dealings that is the Union and financial legacy issues.

"Sell the damn car...that's all you need to do...just sell the damn car...what's wrong with you guys...why don't you listen to me...that's all you need to do is sell th...(skip)...sell th...(skip)...sell th...(skip)...sell th...(skip)...sell th...(skip)...

[Guest buickman]

When I took the reigns at Suski we were bleeding profusely in fixed operations. We stemmed the loss through breakeven analysis and are now on our way to the goal of 100% absorption. The priority IS making money. Selling cars is the driving force, but doing so profitably is the key. At GM we should begin by eliminating the hundreds of millions spent on self destructive marketing. There is a better way, trust me. I know that sounds funny coming from a car salesman, but check out my record.

Buickman

Edited April 5, 2006 by buickman

[CaddyXLR-V]

When I took the reigns at Suski we were bleeding profusely in fixed operations. We stemmed the loss through breakeven analysis and are now on our way to the goal of 100% absorption. The priority IS making money. Selling cars is the driving force, but doing so profitably is the key. At GM we should begin by eliminating the hundreds of millions spent on self destructive marketing. There is a better way, trust me. I know that sounds funny coming from a car salesman, but check out my record.

Buickman

hundreds of million is chump change right now. GM needs to make fundamental changes, not just adjustments, or spend a little less, here, then make a few cuts here.

GM would need to completely cut out the whole marketing budget to make an impact, which obviously would not be wise. GM needs to make big cuts on the cost side, while still investing more in r&d for new products.

Want to give a glimpse of the big cuts you would propose?

[Guest buickman]

Well sir, I should perhaps have made it more clear. It is my understanding that GM spent $500 Million advertising GMS alone. When taken in total, it's Billions per year. Also consider the untold amounts spent with investment bankers as assets are sold. It would blow your mind. Waiting to find out how much, and to whom, we paid to advise on the GMAC spin. These are just the tip of the iceburg.

Buickman

Edited April 5, 2006 by buickman

[Guest buickman]

The captain of the Titanic didn't heed warnings. Here's a glimpse of what lies below:

Walter Reuther once said "You close one plant and we'll close the rest of them". Gettelfinger on the other hand is bought and paid for by Joint Funds. The International Union takes in more from GM than it does from their own membership. Take for example the last VEBA set up by GM. A $1,000,000,000 fund was arranged with a 20% administrative fee going to Solidarity House. You do the math and see why the UAW has no fight, or concern for their own members. Reuther also warned of the danger once Union leaders' income rose above that of the rank and file. The only "Solidarity" I see is between GM management and the "Concession Caucus". Time for America to WAKE UP and realize they are seeing a very well planned rape of the middle class.

GM Dealers...You're Next! Olds was just the beginning, same as Delphi is the practice round. Bucik dealers particularly had better watch out. "Red Ink Rick" wants to combine your franchise with other brands to avoid legal entanglements like Oldsmobile. Why else do you think they are starving you of product?

Buickman

[camaro]

This thread is a fine example of why I do not contribute to the forums on this website. I do not read the threads completely, either, because I know in the first 10 posts what the thread is going to de-evolve into.

[jackstraw454]

so i likened GM to a ship and you compare it to the titanic? thats an original sentiment.

the fact of the matter is this waggoner guy is making some very tough decisions, did you read the interview or just wait for lulls to add your rantings. its not just him barking out orders and saying jump and everyone says ok, how high? theres procedure and framework and preexisting obligations and god knows what else. could you make these decisions or are you so blinded by your sense righteousness that you can do no wrong?

i read these threads with the hopes of informed discussions, not the rantings of a lunatic. 99.5 % i get the former.

you obviously have your problems and think that your job is in jeopardy, you think buick is going to disappear--you think the lesson learned from olds was to avoid legal entanglements? i dont think so pal. i think everyone involved wouldve not gone down that road if they were able to see what was going to happen. thats the benefit of hindsight, too bad its after the fact and unless your "return to greatness" includes a time machine-- its worthless.

you acknowledge at one point this chain of events was set in motion long,long ago but still want to use wags as a scapegoat--why is that?? because he doesnt see the big picture like only you can. or you have this imaginary axe thats a little dull. heres another analogy for you, cindy sheehan(sic)? that thorn in bushs side. is she right? is she going about it correctly?

to me it sounds as if you would be going down with the ship while step 18 was just being implemented, because damn it, you are so sure itll work even though the water is getting higher--or the boat is getting lower. oh wait, thats only the first 20 steps you released--how many fu&^*ing steps are there? so im gonna guess itll be a quick and smooth transition. id tell you to double the meds but maybe you should be breaking them in half.

heres one more analogy hemmingway..GM is this giant fu&%$ing airplane and you are the bird on the windshield. i think thats really what your agenda is centered around. time to move on, man. like i said earlier, even if your "heart" is in the right place you need a better way to show it.

[FUTURE_OF_GM]

This is an excellent article and I think MORE of this is needed. 'The Rick' AND 'Maximum Bob' need to come out swinging. I LOVE the attitude and confidence in 'The Rick's' responses. He IS truly a fighting spirit and to that I can relate.

I *STILL* have a tremendous amount of confidence in 'The Rick'. But, that said, I DO respect Buickman as well. He served GM well and like it or not deserves respect for that regardless of whether or not we agree with everything he says.

[camaro]

Buickman's comments are a result of his hubris.

hubris \HYOO-bruhs\, noun:

Overbearing pride or presumption.

[CARBIZ]

Speaking as someone who works the sales floor, I have to say that I agree with some of what Buickman has been saying. When a dizzying array of programs, rates and initiatives are unleashed on the dealers every day; when contests are announced a week after they had already started; when we are told "this program is gone at the end of the month" and then it continues; when products are promised and then take 3 years to get to market (SSR); well, it doesn't paint a pretty picture, does it?

I don't envy Wagoner his job. The captain of the Titanic was not soley responsible for the ship's sinking: what about pressure from head office (Wall St.) to break Atlantic speed records? What about wireless operators that shut down for the night (then the norm - the California was only a few miles away and watched the Titanic sink!) What about a ship that was rushed through sea trials and launched?

Anyway, I think you get the point.

Our products are better than they have ever been. I truly believe that. We are on the right course, I believe that also. However, we also have too many product lines and too many models. That is obvious. Will Rick cancel more brands? I hope not, but I believe it is necessary. Should Buick go? I would see Saturn or Pontiac go before Buick, but what do I know?

Oh, and I really laughed at the earlier suggestion that customers would gladly pay MSRP for the opportunity to buy online and avoid the dealer experience. Toyota was sued in Western Canada for doing just that. People got pissed because there was no negotiating online and considered that to be anti-competitive. Consumers will bitch and whine even when they get the vehicle for under cost. It is a good salesperson's job to convince the consumer of a good deal; otherwise, FREE isn't a good deal.

[ehaase]

Have you ever thought of becoming an Evangelical Christian Minister?

For some unknown reason, I am not surprised that you would have to attack evangelicals again.

[Croc]

For some unknown reason, I am not surprised that you would have to attack evangelicals again.

That wasn't an attack, merely lighthearted humor acknowledging the similarities between the two professions in terms of the persistance.

Go ahead an be offended, whatever, I don't care. You're over-sensitive anyway and seem to have a severe lack of self-awareness. I truly feel sorry that you cannot laugh at yourself. I'll be praying for you.

If you have anything else of which to accuse me, send me a PM, ok?