Monday, June 01, 2009
Michael Moore's take on GM Bankruptcy
On Michael Moore's Weblog there's a scathing and yet accurate take on the GM bankruptcy. Money spent saving a company with management that can only be described as "inept and stupid" is money wasted. Money spent saving GM's workforce to build American light-rail and green technology is money well spent.
Only time will tell what GM will become. As it enters Chapter 11, it will continue to operate. But does this mean it will still focus on developing next-gen cars such as the Chevy Volt? Will it become our industrial backbone and build the components needed for a more competitive infrastructure? Or will see an H4 and a convertible Chevy Cobalt? More "more of the same" badge engineering?
One major indicator to me will be who becomes the new CEO after the company emerges from Chapter 11. Every single foreign car company's C-level management has engineering, math, or physics degrees. These people grasp and understand the technical problems of manufacturing, global supply chains, automation, waste recycling, etc. Its no surprise these companies emerged as better built and efficiency oriented. When it comes from the top, it becomes part of the culture.
Former GM CEO Rick Wagoneer, on the other hand, spent 26 years as president of the Marketing Department. As UAW obligations rose over the past 25 years, and revenues shrunk, he merely engaged in too little, too late. He denied climate change. He over committed to SUVs and trucks.
I, for one, would like to see an automotive engineering company actually run by engineers. Its too bad I feel GM's culture is incapable of transforming itself in such a way that it could lure consumers such as myself (that only by foreign-branded cars) back to the fold.
Only time will tell what GM will become. As it enters Chapter 11, it will continue to operate. But does this mean it will still focus on developing next-gen cars such as the Chevy Volt? Will it become our industrial backbone and build the components needed for a more competitive infrastructure? Or will see an H4 and a convertible Chevy Cobalt? More "more of the same" badge engineering?
One major indicator to me will be who becomes the new CEO after the company emerges from Chapter 11. Every single foreign car company's C-level management has engineering, math, or physics degrees. These people grasp and understand the technical problems of manufacturing, global supply chains, automation, waste recycling, etc. Its no surprise these companies emerged as better built and efficiency oriented. When it comes from the top, it becomes part of the culture.
Former GM CEO Rick Wagoneer, on the other hand, spent 26 years as president of the Marketing Department. As UAW obligations rose over the past 25 years, and revenues shrunk, he merely engaged in too little, too late. He denied climate change. He over committed to SUVs and trucks.
I, for one, would like to see an automotive engineering company actually run by engineers. Its too bad I feel GM's culture is incapable of transforming itself in such a way that it could lure consumers such as myself (that only by foreign-branded cars) back to the fold.
Labels: cars, links, money, politics
# posted by Chris Wilson : 3:21:00 PM
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