Keith Crain should be running GM

[lt1george]

Keith Crain, editor at Automotive News calls a ball is a ball,and a strike is a strike. He has it figured out..........how come the guys running GM don't ?????

Listen what he has to say GM.

"It's a good thing that General Motors has North America and China to rely on for sales, products and profits.

But what's going on in Europe?

No one understood why GM got involved with PSA Peugeot Citroen by acquiring 7 percent of the company in March. Now, only a few months into the deal, it looks like GM executives made a big blunder. The weak European car market has made the value of the Peugeot stock worth less than the valuation carried on GM's balance sheet.

I hope GM executives were smart enough to stick an escape clause into their deal with Peugeot so they can put their tails between their legs and quietly slip away. It didn't make sense then, and it makes less sense now.

Meanwhile, instead of trying to fix Opel, which has decades of strong recognition with Europeans, the same GM officials are adding Chevrolet into the mix and completely confusing customers.

It will take decades for Chevrolet to establish anywhere near the recognition that Opel has. GM got rid of some pretty strong car brands in North America, including Pontiac, and is starting from scratch to introduce Chevrolet in Europe. GM will spend billions of euros to establish a new brand and dealer organization when it already has the well-established Opel and Vauxhall brands.

GM should allocate that money to fixing Opel rather than trashing a strong existing brand.

GM needs good car people and European finance folks to figure out what Opel needs and then do it. It would be more productive and less expensive than starting another brand in Europe.

People who know the car business realize how difficult and expensive it is to establish a brand in a market, particularly an American brand that is an import to Europeans.

GM needs people with automotive experience at the top of the corporation. It needs top executives who have had operational experience in the automotive industry. The current situation offers plenty of evidence for the GM board.

Much work remains for GM before the U.S. government has a prayer of getting back its money.

The government still has a big stake in GM, but it's up to the company's directors to figure out what needs to be done. It will be interesting to see if they do what has to be done."

Read more: http://www.autonews.com/article/20120813/OEM01/308139978#ixzz23Ozh8KuM

[ocnblu]

He is clearly hinting that GM's head needs lopped off. He has excellent points in your text above. I think he has more automotive experience than the current GM CEO, and he's a publisher.

I wish Bob Lutz could be cloned from 20 years ago and put in the CEO chair.

I think I understand why they're sticking Chevrolet into Europe though, it's a bid to make it the top selling brand worldwide. But I've always had the impression that Europeans are very protectionist (which is fine by me, I wish more Americans were that way without government intervention).

[riviera74]

Europe will always be protectionist. Americans on the other hand. . . . . want cheap Chinese-made everything. Keith Crain is right about GM's moves in Europe, but I think it does not go far enough. Opel and Vauxhall have a large issue and a large impediment. The issue: the European auto market is comatose at best, and it will probably implode any day now. The impediment: very strong European unions and sympathetic governments make it nearly impossible to dispose of excess plant capacity and too many brands. I remember GM shuttering at least half a dozen plants back in 2008 because they had to. Roger and Me was about GM shuttering plants back in the mid-80s (in part). Why won't Europe allow auto plants (or anything else) be shut down other than through BK/liquidation?!

[hyperv6]

If it were as simple as Keith tries to make it. The fact is from a car stand point he is correct but from a Political stand point and union stand point it is a whole different ball game.

GM has major issues with Opel and unions add to the this the Euro mess. On the other hand many of the Chevys are being built in Korea, some of the old Iron Curtain counties and other sites. Most of these counties are either non union or cheaper to build the cars. While it is going to take work to intro Chevy to a poin (it's not a totally unknown name) the future of Opel is going to be just as diffcult and if GM wants to bail they can or at least use the Chevy line as a threat to bail.

In other words most of this issue is non car related and the cars are the the pawns in the large chess match. While years ago people in Europe would buy nothing from the outside that has changed and is no longer true. There are many Asian cars there now and they very well accepted as they are Cheap. If GM can sell Chevy Cheap or cheaper than Opel it may give them a chance to salvage some sales and money.

Europe is one of those deals where GM can't let go and they keep holding on. They are damned either way.