Whitacre’s GM Culture Fix Moves Up Younger Executives, Women

[TomCADem]

Source: Bloomberg

Dec. 5 (Bloomberg) -- General Motors Co. Chairman Ed Whitacre turned to a new team that includes younger executives and more women as he tries to overhaul the automaker’s “inbred” culture and halt annual losses dating to 2005.

Engineering chief Mark Reuss, 46, was promoted to president of GM’s North American operations and Susan Docherty, 47, one of three women promoted yesterday, added marketing to her sales duties. Vice Chairman Bob Lutz, 77, ceded those responsibilities and will be an adviser to Whitacre.

“It’s a signal they are serious about getting younger people in and running the place right,” said Thomas Stallkamp, 63, industrial partner at buyout firm Ripplewood Holdings LLC and a member of the team that helped restructure Chrysler Corp. in the 1990s. “This is a culture that was so inbred, so genteel, people were afraid to speak up.”

Whitacre, 68, has said in media interviews and in meetings with staffers that employees need to shed GM’s culture and hasten efforts to cut costs and regain market share. The former chairman and CEO of AT&T Inc. reiterated the pledge this week as his board ousted Chief Executive Officer Fritz Henderson and Whitacre became interim CEO.


Read more: http://www.bloomberg.com/apps/news?pid=20601109&sid=abrK54Z.7vro&pos=10

[sasquatch]

1. Maybe you could boost sales by opening up some plants in America again

[nyy1998]

3. How would that boost sales?

Customers don't care where their cars are made, otherwise they wouldn't be buying Japanese cars(or German cars for that matter).

[sasquatch]

4. Well if you have workers that are paid well enough and their community benefits enough-

they will in turn start buying your vehicles. This is what Henry Ford discovered.

[nyy1998]

6. Sure, that model worked well in the 1950s and 1960s

But GM has enormous cost already. they're producing overpriced, low-quality cars. Oh, and Henry Ford didn't have just sell to his own employees(because those sales would not be worth the heavy production), he was able to get customers throughout the country, that's WHY Ford succeeded.

[Gman]

2. Whitacre has never been shy about shaking things up

and there are times when it almost seems like he favors women.

[bettyellen]

5. when they do it;s usually because we do more work for less money+ will still be a minority presence

[WriteDown]

7. Nothing like skipping over tenured employees...

For the latest product from Wharton's or wherever.

[zerox]

8. The tenured employees had their shot

and drove GM into the ground. Because someone has worked somewhere a long time doesn't necessarily mean they are the best.