Driving the new GM into the ground

Wednesday, July 15th, 2009 | commentary

If the first step to change is admitting you have a problem, we shouldn’t expect much from the new GM.

Earlier I wrote about the need for fundamental cultural transformation at GM.  I was cautiously optimistic that bringing in outside leadership might usher in real change.

Well, the “new” GM has brought back some old leadership, Bob Lutz, and here is what he had to say:

The problem we have right now is getting the breadth of the American public [..] to realize the transformation that has taken place in GM’s quality, design, fuel efficiency and so forth, and to expunge some of these hoary old conventional wisdoms that General Motors builds gas guzzlers, General Motors has sloppy interiors, General Motors this, General Motors that, none of which is true anymore.  But it tends to get endlessy repeated in the popular press.

Incredibly, this is the same story that GM has been telling itself for years.

Dear Bob, it cannot possibly be true that GM is transformed.  You just emerged from bankruptcy. You are still necessarily selling the cars built by the old GM.

Those “hoary old conventional wisdoms” you deride?  They are true.  Anyone who rents a GM vehicle can reconfirm this for you in a minute.

Your biggest job right now is not to “get the American public to realize the transformation that has taken place.”  That’s the old PR-driven culture rising from the ashes of the old GM.

Your biggest job is to actually to create better products for customers.  Drive success by driving better products that customers will, um, want to drive.

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1 Comment to Driving the new GM into the ground

admin
August 14, 2009

Not only is GM PR-driven, this writer at BusinessWeek makes the case that it’s terrible at PR, too. Very interesting read and more cause for concern about GM’s “new” leadership.

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