I am sorry you feel that way. When 6 months ago, I analysed each and every point of the Return to Greatness and showed much like tannersoc/The O.C. the flaws in the plan. 6 months later, the same plan is being tauted as what will solve the problems at GM. Sorry the boards have been erased so I could link to that analysis. Or at the time, the lack of response from its author.
It would have been one thing if the analysis that many of us shared was incorporated into the plan but that has not happened, even though the author posted countless times he was going to incorporate these discussion. A discussion that is not moving forward is a dead discussion.
The repeated call to fire Wagoner is a mute point, because there is a plan in place. Do you or anyone really think the team running GM does not know what they have to do to succeed. GM is saddled with 30 years of mistakes that can not be overcome with a simple 20 Point plan that is focused on people that are eligible for GM S pricing already and not the real systemic problems the company faces.
Currently, GM is getting beat up in the press, and on the surface it does not look good, but as I have stated countless times, GM's leadership have been making the systemic changes that will result in a better company. The real test if GM will succeed is with the product once that arrives.
And I know many people were hoping for a quicker turn around on the product side with Lutz on board. But, it is too bad that Lutz came in at a time when most of the product that was released under his watch so far was too far along for him to throw out and start from scratch. On top of that, GM would have had to realign their plant rollout to any candance changes by Lutz. One of the many reasons the first round of zeta were axed.
Though GM as organization did make mistakes, GM is still a far better company than they were 5 years ago.
As an organization, they centralized all of NA operations ie purchasing, manufacturing, engineering and marketing and are in the process of consolodating globally. Vehicles will be able to be designed at any of their locations in the world based upon availablity of resourses and then the designed shipped to the appropriate build center just months before launch.
Their NA manufacturing foot print continues to be consolodated where they are able to build more with less. Modular assembly, flexible body shop, and assembly line. GM can/will build it faster with less people on a smaller foot print and adjust their product mix based upon demand. GM's UAW head count reductions are a reflection of this.
GM DAT has been a huge success, not only because of their over night growth in SE Asia, but the growth of the the Chevy brand in Europe and not to mention GMs continued growth in China. GM has over taken VW in China as the number 1 producer. GM DAT went from producing app 500k/yr at the time of the purchase to close to a million today.
There has been significant progress in Europe, breaking down the old Opel organization (1999 Lou Hughes drama), and getting GME diesel powertrains. GM Europe faced many of the same short falls GM NA had, but the benifit of the reorg is finially taking hold with increase in market share and increased productivity.
GM has begun to address the hardest problem they have. Their labor and legacy costs in the US. And because this is so politically sensitive, I would not expect GM to show a significant profit if at all until sometime in 2007 at the earliest.
They already have an agreement as of early fall with the UAW on addressing their health care cost with their retirees. 30,000 more over the next two years will be placed into that system. GM will also benefit from the new prescription drug coverage in Medicare.
This will be used as a holdover until the 2007 labor contract get renegotiated. That will be the last major structural issue they have on the table. Does anyone not think, the Delphi bankrupcy does not play into this saga. The end of the jobs bank, health care coverage they pay into, 401k savings accounts. After that contract is sign, GM will be close to a level playing field with the transplants from Europe and Asia as far as labor goes.
By that time, a good portion of GM product line up should be revamped under Lutz.
I can go on but I would say GM's leadership are addressing the serious issues they have. Now, the product has to continue to be right. GM certainly is increasing their capital investment in new product and powertrains as well. Releases for NA over the next year or so:
Complete new highly profitable 900 Utilities.
Complete new pick up.
3 new lambda utilites.
Saturn Aura
All the above represent app 1.5 million vehicles. That is larger than Nissan and as big a Honda in NA.
It takes years to fix 30 years of blunders, but GM is on the cusp of finially doing just that. There will be no excuses after 2007. GM's Return To Greatness has just been outlined. Rick Wagoner and Team already wrote it.
