Being No. 1 no longer a top priority for GM

[andy82471]

http://www.leftlanenews.com/2006/06/14/wag...r-gms-top-goal/

General Motors boss Rick Wagoner said being the world’s largest automaker is not the company’s top priority anymore, according to the Wall Street Journal. “Would we like to stay number one? Sure. Is it the top priority of the company? No,” he said at a press conference in St. Petersburg, Russia, where the automaker is building a new plant. “We’re really focused on very strong profitability growth and balance-sheet strength in addition to driving the revenue side.” Recently, there has been a great deal of speculation that Toyota will soon surpass GM in terms of overall worldwide sales volume. However, Wagoner hasn’t conceded to losing the sales battle entirely. “If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

Edited June 14, 2006 by andy82471

[Mr.Krinkle]

is there really any right way to take this news? the part i dont get is why even mention it at all.

[andy82471]

is there really any right way to take this news?  the part i dont get is why even mention it at all.

I guess he is just stating the inevitable. Although it is a bit sad coming out of Wagoner's mouth. I guess this is just a politically correct way of saying Toyota beat us. But hopefully GM will be motivated by their runners up status and try hard to regain the championship soon.

[roopull]

I guess he is just stating the inevitable. Although it is a bit sad coming out of Wagoner's mouth. I guess this is just a politically correct way of saying Toyota beat us. But hopefully GM will be motivated by their runners up status and try hard to regain the championship soon.

Yeah... take back the crown while making money. I'm no fan of any car company, really, but I find Toyotas to be about as exciting as a nice afternoon nap. It may be what I need from time to time, but certainly nothing I'm going to be telling my firends about.

For fun, let's make a list of the exciting cars from each company

Toyota... uh... hmmm... no Celica, Supra, or anything approaching exciting...

GM... Solstice, Sky, GTO, Vette...

[Guest Joshiepoo]

Wagoner needs to be thrown to the lions and replaced with someone who knows what they're doing. Someone who has grown up in a UAW household but couldn't get a job with the UAW or as a car salesman would do nicely. I'll impliment the Plan and GM will return to its former glory.

[Northstar]

Of course being #1 is the TOP priority. The top priority for any company is staying afloat and being profitable.

[hyperv6]

If your not first profitable your never going to be or stay #1.

Making a profit is #1 priority and if you can do that who is #1 over all will take care of itself.

Profit=Better Products being develped and Better Products=Growth.

[regfootball]

i can't wait for toyota to be #1 in sales because then the press will turn on them and start the process of destroying them.

[Brandon Lutz]

I think he is spot on with his assessment. #1 goal of a company being profitable should be the goal. Without profit, there is no room to grow, design, engineer, and produce new products.

[jry]

build GREAT cars, price them right, make a profit on them and treat your customers well and market share will take care of itself.

[Imaj]

Being profitable is far more important than being sales leader!

GM should consolidate its brands, lowering the number of cars per brand and focusing more on brand identity and better cars!

[Sixty8panther]

Yeah... either way I hope Toyota gets what is coming to them!

[Guest buickman]

Being number one was never a question until "Red Ink Rick" began running the show. The real question is how did he get the job in the first place? That's the key, and it has absolutely nothing to do with qualifications.

Buickman

[evok]

Being number one was never a question until "Red Ink Rick" began running the show. The real question is how did he get the job in the first place? That's the key, and it has absolutely nothing to do with qualifications.

Buickman

GM produced and sold more vehicles globally last year than ever before. Last time I believe GM did that was in the 1970's.

[DetroitNut90]

Being number one was never a question until "Red Ink Rick" began running the show. The real question is how did he get the job in the first place? That's the key, and it has absolutely nothing to do with qualifications.

Buickman

the #1 spot was in jeopardy ever since GM got lazy in the 70s. Same thing happened to Ford. They got lazy, and look at them: they ain't No. 2 anymore.

And not to be rude, but this thread has nothing to do with Wagoner's credentials- GM's problems began before Wagoner was in management.

[Camino LS6]

This one merits a great big "duh".

A healthy and profitable #2 is not a bad place to be. With that said, I still doubt Toyota will be able to pull it off.

[Guest YellowJacket894]

Maybe this will help GM focus on product just a little more...

[bowtie_dude]

Suits me. I'd rather have a profitable, smaller GM that will be around in 10, 25, 50, or 100 years than a non-profitable larger GM that will be gone in 25.

The media will make a bigger deal out of it than it actually is.

[roopull]

i can't wait for toyota to be #1 in sales because then the press will turn on them and start the process of destroying them.

I was wondering to myself if that would happen when they're number one... if not destroying them, perhaps they'll quit quoting the Toyota Corp's company line...

[thegriffon]

I guess most of you missed this bit:

“If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

[andy82471]

I guess most of you missed this bit:

“If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

Seems like TOYOTA is doing just that. Increasing production at an incredible rate. No wonder their quality has taken a hammering lately.

[evok]

I guess most of you missed this bit:

“If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

It is easier to spell it out - CHINA/GM-DAT/EasterEurope(Russia).

Edited June 15, 2006 by evok

[evok]

Seems like TOYOTA is doing just that. Increasing production at an incredible rate.

His point was, GM is a lot bigger globally than what is reported in the US press and media. Less than half of GM's sales are in the US.

Edited June 15, 2006 by evok

[CARBIZ]

Yeah, this is a point that the media seems to keep missing. Even if GM drops to 20% market share in the U.S. and stabilizes there. Even if Toyota rises to 15-18% market share in the U.S. and stabalizes there - that doesn't necessarily spell doom for GM because of its successes in other areas.

However, it does beg the question that if GM can build profitable, fun small cars and trucks elsewhere, why can't they seem to get the car market right here?

[andy82471]

Yeah, this is a point that the media seems to keep missing.  Even if GM drops to 20% market share in the U.S. and stabilizes there. Even if Toyota rises to 15-18% market share in the U.S. and stabalizes there - that doesn't necessarily spell doom for GM because of its successes in other areas.

  However, it does beg the question that if GM can build profitable, fun small cars and trucks elsewhere, why can't they seem to get the car market right here?

I don't think eroding market share is a big deal for GM. You are right that worldwide GM is selling more cars than ever. And they will continue to grow in Eastern Europe, Russia and China in the forseable future. Their biggest problem is the legacy costs (aka healthcare, pension etc). Once that is brought under control (although I think at some point the government has to intervene in some way) GM could very well be the most profitable carmaker in the world. Remember that is the healthcare cost that responsible to a large extent to GM's market share erosion in North America. If GM could make money with all the cars they were selling they would have been the most profitable car company in the world.

However, it does beg the question that if GM can build profitable, fun small cars and trucks elsewhere, why can't they seem to get the car market right here?

Yes, but to do that, healthcare costs has to be under control. GM needs to renegotiate with the union soon. Right now GM isn't making any money on small cars. Hence, they have to rely on big SUVs and trucks for the bulk of their profits and suffer the wrath of misguided liberal columists like Tom Friedman.

Edited June 15, 2006 by andy82471

[-Camaro-]

Maybe losing #1 spot will make kick their ass into overdrive and actually make them want to compete again in other areas besides trucks... They could reclaim #1 if this is their wakeup call.

[haypops]

suffer the wrath of misguided liberal columists like Tom Friedman.

Friedman is not a liberal, I wish that he were.

From

http://en.wikipedia.org/wiki/Thomas_Friedman

<<from a centrist, neoliberal perspective on the political spectrum. Friedman is a three-time winner of the Pulitzer Prize (1983, 1988, and 2002), >>

and from:

http://en.wikipedia.org/wiki/Neoliberal

a neoliberal = <<neoliberalism refers to a political-economic philosophy that de-emphasizes or rejects government intervention in the domestic economy. It focuses on free-market methods, fewer restrictions on business operations, and property rights. In foreign policy, neoliberalism favors the opening of foreign markets by political means, using economic pressure, diplomacy, and/or military intervention. >>

In other words Friedman is Bush lite.

[haypops]

I'm sorry that I didn't save the link, but Friedman has replied to GM's fastlane blog etc. Basically he says that he is right. Surprise! Actually he presents some reasonable arguements, but what he doesn't do is repeat his call for Toyota to take over GM or to call GM a drug pusher. Score one for GM in some respect.

[FUTURE_OF_GM]

i can't wait for toyota to be #1 in sales because then the press will turn on them and start the process of destroying them.

LMAO...

Yeah right!!!

Toyota will NEVER be destroyed like GM has simple because they are NOT an american company.

That's one thing we proudly do here in america as americans.. Destroy our industry and heritage and cherish foreign entities like they have some sort of god given aura... Good ole america; everybody's b*tch for the right price

[roopull]

...cherish foreign entities like they have some sort of god given aura... Good ole america; everybody's b*tch for the right price

God is going to give the importers Saturn Auras? What for?

[drew770]

The day that Toyota becomes the #1 automaker the press will be in glory.

Another failed American company that couldn't compete with foreigners.

I really think America is the only country on Earth that always cheer for others and not ourselves.

We are so selfishly consumed with our cheap foreign Walmart goods that we tend to forget that we are putting Americans out of work and we are forcing manufactorers to outsource because we want cheap and fast in this country.

Now, we are getting stuck with Toyotas and we love Toyota dirty underwear because they are foreign and has a preception of quality even though quality has been slipping lately.

We will never learn until our economy is completely service jobs and we are all serving burgers at Burger King.

[Guest buickman]

Why wouldn't you make being number one a priority? Obviously doing so in a profitable operation is a necessary combination.

Buickman

[fbodfather]

I don't think there's a person within GM -- or any of our dealers for that matter, that want to see GM become number two.

But there are a few problems that we (as America) don't seem to address:

The Japanese are very good at predatory trade practices. Try exporting something to Japan -- Unless it's raw materials, it's not gonna happen. There are volumes upon volumes of cases where people and companies in other countries try to get into the Japanese market -- and they are stymied at every turn. They continually change the rules and regulations -- making impossible.

The Japanese understand that in order to grow their economy, they must exportexportexport -- and further -- they see the value in doing everything they can to ensure that happens -- including buying Japanese.

That doesn't happen in most countries -- esp. this one!

(and -- by the way -- I didn't see one good point in Friedman's response....it's malarky.)

[fbodfather]

........and while I'm on the subject of Friedman --

..........ever notice he's an expert at everything -- but unless I'm mistaken, he's never run a business?

[Newbiewar]

I don't think there's a person within GM -- or any of our dealers for that matter, that want to see GM become number two.

But there are a few problems that we (as America) don't seem to address:

The Japanese are very good at predatory trade practices.  Try exporting something to Japan --      Unless it's raw materials, it's not gonna happen.  There are volumes upon volumes of cases where people and companies in other countries try to get into the Japanese market -- and they are stymied at every turn.  They continually change the rules and regulations -- making impossible.

The Japanese understand that in order to grow their economy, they must exportexportexport -- and further -- they see the value in doing everything they can to ensure that happens -- including buying Japanese.

That doesn't happen in most countries -- esp. this one!

(and -- by the way -- I didn't see one good point in Friedman's response....it's malarky.)

there is a considerable amount of literature but politically its never addressed...

and i think the next USA president needs to have a little concern for amercian companies... because we arent playing with even waters in this global world...

[CARBIZ]

The common people of Japan are paying for Japan Inc's foreign expansions. Just look at how stagnant the domestic economy has been over their this past decade. Large companies in Japan have long enjoyed cheap money so that they can expand their foreign holdings, not to mention a depressed yen.

MITI is real. They spearheaded the assault on the electronics market in the '60s and have been orchestrating the automotive market for 30 years.

I guess for the average North American, none of this matters when they rush out and buy their new Camry or Altima.

For me, fair is fair: if Japan EVER allowed one single foreign owned car company to open a single plant on their soil, or ever allowed significant auto imports from ANY country, whether Peugeot, BMW, Mercedes - ANYBODY, then I would allow myself to consider a Japanese car.