Thoughts on General Motors

This past week I’ve been following the news surrounding the auto industry very close. I was surprised at the forced ouster of Rick Wagoner at GM. I can’t say as I know much about him, but from recent headlines—plus an interview published in Motor Trend a couple years ago—I kind of liked the guy. I thought he understood the scope of what was going on in his company and what it needed to succeed.

I don’t know if a management change really includes a promotion for the COO/president, but hopefully Mr. Henderson can give GM what Wagoner was deemed unable to.

When I first heard the news of Wagoner’s getting the boot, followed by President Obama’s pledge to back GM warranties in the event of bankruptcy and/or failure, I immediately thought this was socialization of the automotive industry. Could GM become the new AmTrak? Would it be a government-run, money-losing, yet distinctly American venture? Would President Obama remake the company to serve his agenda: building bean-shaped, hybrid, Prius-like green cars?

After reading columnist David Broder’s take on Obama’s heavy-handed dealing with GM, I was introduced to an alternative viewpoint. By rejecting GM’s viability plan, Obama is playing hardball with the company, and namely the UAW. And while socialism is generally seen as a tenet of mainstream Democrats, union busting certainly is not.

Here are a few ideas I have on how GM can fix itself. Stop building crap. Rebadging a Daewoo (a car that failed in the U.S.) as a Chevy Aveo shows a real lack of commitment to quality. Stop marketing the same cars under 10 different nameplates. Ok a bit of an exaggeration, but the Saab 9-7x, Chevy Trailblazer, GMC Envoy, Buick Rainer, Isuzu Ascender, and Oldsmobile Bravada don’t even look remotely different. Finally, pursue the Chevy Volt. I’m not a big fan of hybrids and green cars, and I thought the Volt was stupid at first. However, there may be something useful to electric/gas technology that goes beyond traditional hybrids. Another subject for another blog…

One last thought, then I’m done. What do you figure Rick Wagoner drives? These days, even a Cadillac isn’t generally seen as all that great of a status symbol. Perhaps a Saab? (Before GM killed/sold off the brand.) Or maybe a Jeep Grand Wagoneer, kind of like his last name? Oh wait, that’d be supporting the competition. I don’t know…Wagoner’s wheels is but an interesting point to ponder…