GM . . . may survive

Corporations express the beliefs and opinions of their corporate managers who have a right to be wrong. During his time, Bob Lutz's GM denied, misled, and did everything they could to end the future of electric and hybrid electric vehicles. It didn't work but it sure caused a lot of hybrid trash-talk.

Lutz was eventually promoted to 'staff' and as soon as he retired, GM ended the 'mild hybrid' fraud. A year and a half ago, I met the design engineer of the Saturn two-mode Vue and he told me that they were directed to have the word "HYBRID" on the doors of that car . . . before it was killed and Saturn sold off.

The short term CEO Ed Whitacre relocated Lutz to a 'staff office' which helped Bob Lutz leave. But Ed is not the man to replace Lutz's 'hires,' the ones who would still follow Lutz's opinions and attitudes. Ed Whitacre is now stepping down and a new name, a new face to automobiles, Daniel Akerson, will take over. We've seen this work at Ford.

Ford replaced the family CEO with an outsider, Allen Mutally, in 2006 and he successfully avoided the Detroit meltdown and brought a new hybrid, the Ford Fusion. It took an outsider to break the established ways of thinking and Ford is looking at gaining market share. This is what Daniel Akerson may accomplish for GM.

Whitacre leaving General Motors

According to the "Autoline" podcast, 8/13/2010, Lutz has already muttered something about 'Akerson needing to pay attention to the established (aka., Lutz hired) GM executives.' Hopefully Akerson will treat Lutz's comments with the care and attention it deserves . . . and after a couple of the Lutz cronies leave, GM may let a younger generation of engineers do the right thing.

This is the first time I can remember when I see GM stock as possibly being worth something in the future. There is nothing wrong with American engineering that trimming some brain-dead wood won't fix.

No, I'm not trading in either of our Prius for Volt . . . a Lutz tained Beta that really doesn't exist. Rumors are that it won't come to Alabama anytime soon. Next year, there will be a dozen new hybrids and electrics and we'll see how the market shakes out. So I'm not committing to anything but what is best for me and my family.

Bob Wilson

 

A 'place' does not innovate but rather it is the collection of skilled, crafty people that make stuff happen. When we were in Detroit, some of us went to the museum and that was a very nice area and neighborhood. But I've also lived in other neighborhoods where gun fire was common and not just in hunting season.

In 13 years employeed with GE Space Division, I learned that "headquarters = death." It isn't so much that headquarters lacks innovation and is full of 'back stabbers seeking a position' as much as they kept shedding 'managers' who came down to 'reap the harvest' innovated by field offices. In fact, the further I was from a headquarters, the more innovation was evident. So in one respect, an outsider manager may not know where these islands of innovation are and won't "help" them so they can grow and produce. <grumble, grumble>

Bob Wilson