GM Brings Confidence Forward

Chris – these posts about GM have been fascinating and I thank you for sharing them with us. I worked for rival manufacturers in Europe for 20 years, so GM’s struggles have been painful to watch. Lack of confidence over the years has contributed to those problems, but my experience of their senior management in Europe suggests to me their biggest problem was a lack of enthusiasm.

Your posts give me hope – because the people you have been talking to seem to be both confident and enthusiastic, and that’s reflected in the cars they’re now producing. Here is Europe Insignia and Astra are genuinely good cars, and by all accounts the US range are too.

GM will recover if that recovery is product lead, and lead by people with confidence and enthusiasm.

Chris – these posts about GM have been fascinating and I thank you for sharing them with us. I worked for rival manufacturers in Europe for 20 years, so GM’s struggles have been painful to watch. Lack of confidence over the years has contributed to those problems, but my experience of their senior management in Europe suggests to me their biggest problem was a lack of enthusiasm.

Your posts give me hope – because the people you have been talking to seem to be both confident and enthusiastic, and that’s reflected in the cars they’re now producing. Here is Europe Insignia and Astra are genuinely good cars, and by all accounts the US range are too.

GM will recover if that recovery is product lead, and lead by people with confidence and enthusiasm.

Chris,

What an amazing opportunity to sit down with the CEO of GM. It doesn’t surprise me that a CEO of a company that big would be confident. But is lack of confidence really the problem with the automotive industry or any of the others that have struggled over the years? It seems to me that there was a little too much confidence going around for a while and that might just be what landed us where we are today.

I love the idea of the Onstar system throttling down a stolen car. Let’s hope that kind of ingenuity continues with the fuel-efficiency and business practices of the automotive industry and that the confidence carries over into the ability to lead and create real change.

Thanks for sharing the article, now if you could only share that ride in the CTS!

-Marty

As you said yourself in an earlier post Chris, confidence is sexy (in a purely professional way, of course : ) ) I like the idea of walking around with a mindset that confidence can be displayed in the products you create, the words you speak, the way you treat others. And I like that confidence comes from the very values that we hold so dear in social media: authenticity, honestly, the ability to be challenged, to admit you are wrong, graciousness, kindness. Great, engaging story of the GM side of things as well, have been fascinated by the inside look, and love that de-thottler story. Because yes, confidence comes, too, from creating things that make the world a better place. Thanks.

As you said yourself in an earlier post Chris, confidence is sexy (in a purely professional way, of course : ) ) I like the idea of walking around with a mindset that confidence can be displayed in the products you create, the words you speak, the way you treat others. And I like that confidence comes from the very values that we hold so dear in social media: authenticity, honestly, the ability to be challenged, to admit you are wrong, graciousness, kindness. Great, engaging story of the GM side of things as well, have been fascinated by the inside look, and love that de-thottler story. Because yes, confidence comes, too, from creating things that make the world a better place. Thanks.

Thanks for the quick look under the hood of GM. The CTS always caught my eye, too. Unfortunately, it gets fewer miles per gallon than the Model T did a century ago. Fixing that is the only thing that really matters.

Really envious that you’ve had the Grand Tour Chris, but you deserve it, and thanks for the insight!

I’ve been in the Motor Industry, both car &, latterly, truck, for over 30 years, and confidence hasn’t generally been a problem in that time – not from the industry side at least.

The bigger obstacle now is for the industry to get back the confidence of the buyer & the driver, not only for the manufacturers, but more importantly, for the sake of the whole sub-strata of smaller businesses that all depend on them in some form or fashion. This is where social media is going to have greatest value for them – in being able to connect, and get feedback from, their customers.

Providing they take the feedback to heart, and act on it, they will learn to build the models the public, and corporate, buyers want, NOT the hulking great lumps of the past that they wanted to try & sell.

The world has moved on since last year and the macho economy has now moved much more towards the feminine, which better embraces the social, “get to know you before I deal with you”, approach that GM and the others are going to need to master to prove they are making the change towards smaller, more fuel-efficient, energy-conscious motors we need in the future. No-one can teach them about this level of conversation better than you!

On a “techie” front, I trust they will greet the opportunity to develop “road warrior” packs to acknowledge the needs of all those who have to drive for a living – the car or truck becomes the mobile office – access to good communications, and charging, and music, and ergonomics are all vital, but none more so than the need to minimize internal distractions whilst driving.

I for one am really looking forward to the new motor future. Keep us posted on it Chris!

Really envious that you’ve had the Grand Tour Chris, but you deserve it, and thanks for the insight!

I’ve been in the Motor Industry, both car &, latterly, truck, for over 30 years, and confidence hasn’t generally been a problem in that time – not from the industry side at least.

The bigger obstacle now is for the industry to get back the confidence of the buyer & the driver, not only for the manufacturers, but more importantly, for the sake of the whole sub-strata of smaller businesses that all depend on them in some form or fashion. This is where social media is going to have greatest value for them – in being able to connect, and get feedback from, their customers.

Providing they take the feedback to heart, and act on it, they will learn to build the models the public, and corporate, buyers want, NOT the hulking great lumps of the past that they wanted to try & sell.

The world has moved on since last year and the macho economy has now moved much more towards the feminine, which better embraces the social, “get to know you before I deal with you”, approach that GM and the others are going to need to master to prove they are making the change towards smaller, more fuel-efficient, energy-conscious motors we need in the future. No-one can teach them about this level of conversation better than you!

On a “techie” front, I trust they will greet the opportunity to develop “road warrior” packs to acknowledge the needs of all those who have to drive for a living – the car or truck becomes the mobile office – access to good communications, and charging, and music, and ergonomics are all vital, but none more so than the need to minimize internal distractions whilst driving.

I for one am really looking forward to the new motor future. Keep us posted on it Chris!

Thanks for the article, it’s good to hear an optimistic view for GM, I would like to see them make it out of this and it sounds like they have a some great people at the helm.

Hi @Justin – actually, the CTS gets 26 hwy (18 city). I drive one as my personal car, and usually get somewhere right around 22 mpg.

As for the comparison to the Model T, it’s apples and oranges. Think of all the features missing in that Model T that are present in a modern vehicle. Safety features like crumple zones, reinforced safety cages, anti-lock brakes, heavier steel, airbags, etc. Electronics systems that power everything from stereo systems to interior lights, from seats to windows to air conditioning to in-vehicle diagnostics. The Model T’s four-cylinder, 22-hp engine topped out at 45 mph, and it didn’t have a catalytic converter — which meant that its emissions were more like what you’d get from a go-kart than anything you’d see today. Could any manufacturer today successfully market an unsafe, open air, poorly braked, un-air conditioned, no stereo, 22 hp, noxious emissions-heavy model that only goes 45 mph when you floor it?

The comparison is fun for critics, but it’s not really a fair one. I’m not at all saying that our industry can’t, shouldn’t or won’t do better on fuel efficiency; please don’t misunderstand my point. I’m just pointing out that focusing on one element of the Model T, while ignoring every other element that is a feature of a 21st century vehicle by any manufacturer, is a bit of a red herring.

Anyway, while we collectively have work to do, I am quite confident that we can do it. We have some changes to make along the way, undeniably. But we’ll get there. And we appreciate the time from people like Chris — both to see what we do already, and to help us ID what we need to do better. Thanks to both Chris and this community for giving us the chance to talk with you.

Hi @Justin – actually, the CTS gets 26 hwy (18 city). I drive one as my personal car, and usually get somewhere right around 22 mpg.

As for the comparison to the Model T, it’s apples and oranges. Think of all the features missing in that Model T that are present in a modern vehicle. Safety features like crumple zones, reinforced safety cages, anti-lock brakes, heavier steel, airbags, etc. Electronics systems that power everything from stereo systems to interior lights, from seats to windows to air conditioning to in-vehicle diagnostics. The Model T’s four-cylinder, 22-hp engine topped out at 45 mph, and it didn’t have a catalytic converter — which meant that its emissions were more like what you’d get from a go-kart than anything you’d see today. Could any manufacturer today successfully market an unsafe, open air, poorly braked, un-air conditioned, no stereo, 22 hp, noxious emissions-heavy model that only goes 45 mph when you floor it?

The comparison is fun for critics, but it’s not really a fair one. I’m not at all saying that our industry can’t, shouldn’t or won’t do better on fuel efficiency; please don’t misunderstand my point. I’m just pointing out that focusing on one element of the Model T, while ignoring every other element that is a feature of a 21st century vehicle by any manufacturer, is a bit of a red herring.

Anyway, while we collectively have work to do, I am quite confident that we can do it. We have some changes to make along the way, undeniably. But we’ll get there. And we appreciate the time from people like Chris — both to see what we do already, and to help us ID what we need to do better. Thanks to both Chris and this community for giving us the chance to talk with you.

Chris, thanks for sharing positive information about GM and the confidence that they have (and we should have in them). But, it’s difficult for the average person to believe in this confidence as the media is pushing out an entirely different story in print, on the news and online. Now, people who are truly connected, especially through social media, are fortunate enough to hear the positive side of the story and learn about the great GMs great accomplishments (i.e., your explanation of onstar and hearing how it saves lives right from the source). I think there’s always another side of the story…his side, her side and then the truth. In order to get to the truth, Americans have to see and understand all of the parts (no pun intended). Social media definitely helps to complete the picture and provide me with the full story! Great post :)

Chris,
Great story. Especially in light of where they are today, and looking at GM alternately through prisms of the government, brand perception, their products and social media (dominated IMO by Ford and that Scott Monty guy).

Just wondering if Fritz has friended you on Facebook or LinkedIn yet? ;)

-Rich

Chris,
Great story. Especially in light of where they are today, and looking at GM alternately through prisms of the government, brand perception, their products and social media (dominated IMO by Ford and that Scott Monty guy).

Just wondering if Fritz has friended you on Facebook or LinkedIn yet? ;)

-Rich

These are an interesting glimpse behind the scenes. :) I love that you are sharing your impressions with us.

I must admit that I am a BMW driver and before that a VW owner. I can say that my first car was a Saturn and I have very fond memories of that car.

Chris’s “behind the scenes” at GM has been a real eye opener. It has really got me excited about what GM is doing with it’s new line of vehicles. I have caught a few news reports on some of the new vehicles like the Volt, Terrain, and especially the CTS. I really like the CTS both in styling and sportiness and I think the performance upgrades really put it on par with the BMW. But I digress.

I feel that somewhere in Chris’s inside look at GM there is an ad campaign. I really connect with his story and how approachable everyone seems. Makes me wish that a behind the scenes look was available to everyone. I guess that is the purpose of social media and why it is so fast growing, making those personal connections with people and in this case products.

Can’t wait for the next entry.

I must admit that I am a BMW driver and before that a VW owner. I can say that my first car was a Saturn and I have very fond memories of that car.

Chris’s “behind the scenes” at GM has been a real eye opener. It has really got me excited about what GM is doing with it’s new line of vehicles. I have caught a few news reports on some of the new vehicles like the Volt, Terrain, and especially the CTS. I really like the CTS both in styling and sportiness and I think the performance upgrades really put it on par with the BMW. But I digress.

I feel that somewhere in Chris’s inside look at GM there is an ad campaign. I really connect with his story and how approachable everyone seems. Makes me wish that a behind the scenes look was available to everyone. I guess that is the purpose of social media and why it is so fast growing, making those personal connections with people and in this case products.

Can’t wait for the next entry.

Re: @Deirdre: as the media is pushing out an entirely different story in print, on the news and online.

Joe Petrowski, CEO of Cumberland Farms and Gulf Oil knows, “our customers are mobile.” Mobile in the sense that if my customer experience needs–quality and price–aren’t met in his stores, I’ll simply go down the street until I find a place that satisfies. Smart CEOs–as in, they get the enabling power of social media–know their customers are mobile; and can localize the marketing effort: Store level, the place where business happens.

Yes, old consumer mediathink pushes tired iron; but new media and prosumers present possibilities. Hmmm… think I’ll go kick some tires…

GM needs proper financial footing and by that I do not mean loans. It needs to teach its managers at every level how to understand the bottom line – what is profitable – what is not. Looking at sales is not the answer. Every manager at GM needs to understand how to measure its vast divisions one against the other and throw out GAAP accouting standards.

.We made a good faith offer to train all GM managers from the ground up (five easy steps in six hours) how to measure the true growth of their company – in an effort to assist in warding off bankruptcy of this company – predicted in 2006. We made this offer free of charge three years ago,. We never heard back. Could we have made a difference? Considering that we have taken companies through every economic downturn and shown them how to increase their profits up to 45% a year – YES – I do believe we could have. We’ve been doing it for forty years for corporations of every size.

GM does not need tin cups. It needs to come to grips with the financial bottom line. And it needs to teach its managers – and suppliers – how to get there quickly. Whether they restructure or not – their managers need to understand their financial reports.

The offer is still on the table. Will they listen? What’s your bet?

GM needs proper financial footing and by that I do not mean loans. It needs to teach its managers at every level how to understand the bottom line – what is profitable – what is not. Looking at sales is not the answer. Every manager at GM needs to understand how to measure its vast divisions one against the other and throw out GAAP accouting standards.

.We made a good faith offer to train all GM managers from the ground up (five easy steps in six hours) how to measure the true growth of their company – in an effort to assist in warding off bankruptcy of this company – predicted in 2006. We made this offer free of charge three years ago,. We never heard back. Could we have made a difference? Considering that we have taken companies through every economic downturn and shown them how to increase their profits up to 45% a year – YES – I do believe we could have. We’ve been doing it for forty years for corporations of every size.

GM does not need tin cups. It needs to come to grips with the financial bottom line. And it needs to teach its managers – and suppliers – how to get there quickly. Whether they restructure or not – their managers need to understand their financial reports.

The offer is still on the table. Will they listen? What’s your bet?

@Joan Symonds. From my perspective GM’s problems (in Europe, because I know that market) actually stemmed from putting too many accountants and corporate types into the senior management positions in the 1980′s. At that time market share was huge, and these guys decided that profitability would be dramatically improved by squeezing costs – new model development suffered and so did existing model quality as every cent was saved to make more profit per unit.

The result? They lost their customers, and market share took a huge hit, with the void filled by Japanese manufacturers and Volkswagen. Both of whom understood that they had to produce great product and build it to high standards, and guess what? They could even charge a premium.

GM doesn’t need it’s managers to be more financially constrained or aware. It needs passionate people with both eyes firmly fixed on the customer, not the balance sheet.

Am I the only one who isn’t nuts about the government being able to throttle down my car while I am driving it? Talk about completely kissing away your personal privacy, freedom of movement, and independence from state. Say something they don’t like on the cell phone, they flip the switch on your car, watch you, listen in, shut it down, what’s next, release a gas that immobilizes you so you can’t run from the SS on foot? Call me a cynic I guess. It is very creepy.

Am I the only one who isn’t nuts about the government being able to throttle down my car while I am driving it? Talk about completely kissing away your personal privacy, freedom of movement, and independence from state. Say something they don’t like on the cell phone, they flip the switch on your car, watch you, listen in, shut it down, what’s next, release a gas that immobilizes you so you can’t run from the SS on foot? Call me a cynic I guess. It is very creepy.

@mike CJ – Mike – It’s unfortunate that back in the 80′s those accoutants were beholden to GAAP standards which do not work. It is a common misconception that new product will keep the profits afloat and to a degree that is certainly true. We have to keep the market fresh.

But lo to the corporation that does not train its managers the basics of how to read the balance sheet and income statement. The only measurement of the true profitability of any company lies within those two components.

You are seeing the results in the market today from the erroneous thinking that CFO’s are responsible for the corporate finances. Wrong! Every manager in the company is responsible. Had GM trained its managers properly – they would not be tin cupping it to Congress today. Not just GM – is it possible GE is right behind? Give it thought.

@mike CJ – Hey Mike – need to freshen up my typing skills.

Second paragraph should read – WOE to the corporation that does not train its managers… etc etc. Thanks for the dialogue.