What? I don’t really know. He or an underling managed to screw up the sale of Opal, Saab, Saturn and any other part of the company vaguely attractive enough for someone to spend money on. Plus, lets face it, Fritz is not a really marketable name.
Company officials described the decision for Henderson to resign at "mutual." I have to wonder if some of that mutuality had to do with Fritz screaming, “Free at last! Free at last! God almighty I’m free at last.” as he left the office today.
It is worth noting that the people who hired Henderson did so with very real doubts. Speaking last month Steven Rattner, head of the Obama auto task force, had this piece of high praise for Henderson “He’s shown that he can manage.” In what has to be one of the least surprising opinions ever offered on the auto industry, Rattner said GM and Chrysler “were some of the worst-run companies I’ve ever seen in my life.”
The CEOs of GM and Ford have announced they will drive from Detroit to DC for the next round of begging from Congress. Clearly this was supposed to make us forget that the Detroit Three had flown in separate private jets the last time they tried to explain why their companies were running out of money.
Instead all it has done is reminded us of this. Apparently you can’t answer a cheap shot with a cheap stunt. I particularly like the fact that the two CEOs are coming in separate cars. No car pooling for these two.
Better move would have been to simply taken a commercial flight. Or walked. I hope the press will tail both men all the way during their drive. Otherwise we might get a Rosie Ruiz situation. (Ms. Ruiz was named winner of the 1980 Boston Marathon, until it was discovered she had only run .2 of the 26.2 mile course.)
Not surprisingly the “it’s not our fault” argument is echoed by UAW President Ron Gettelfinger: “We’re here not because of what the auto industry has done. We’re here because of what has happened to the economy.”
This would be more believable if GM had been doing well before the credit markets went to hell. Let’s remember that we’re talking about GM here and what it’s track record is like. This is a company that even when it gets a good idea goes out of its way to kill it.
Remember Saturn? GM started an authentically different company that attained a beloved cult-like status and then all but killed it by not letting it put out new models. Don’t even get me started about the electric car and where the company would be today if they’d kept developing that program they killed after putting $1 billion into it. And then there’s the decades of lobbying against improving mileage standards that — had they been in effect — would have also saved their asses.
GM is also arguing that it’s basically under new management and that the guys who made all those stupid decisions have been replaced. Even if this is true, then let’s hold them accountable for the stupidity just since Rick Waggoner became CEO. For the last seven years their strategy has been, “we’re going to bet it all on the short-term profits to be made from SUVs.” Thus they launched Hummer et al. I’m supposed to trust a bunch of guys who couldn’t figure out that the price of gas fluctuates? Who couldn’t figure out that there was a difference between short-term profits and long-term viability?
Let’s make one thing clear — the term “US automakers” is a misnomer. When someone says they want to “bailout the US automakers” they really mean GM. Ford has said repeatedly that they have enough credit to get through and Chrysler is no more or less a US company than Honda or Toyota. The Big Three is in fact the Incompetent One.
Wait, I will bow to the Journal on this one: they’re going with “The Detroit Three” and that works for me.
And speaking of car crashes, I was ecstatic to see The Treasury Department said NO! to GM’s request for up to $10 billion to finance its merger with Chrysler. They wanted you and me to pay for this idiot idea? If they can’t even afford to do the merger why do it in the first place? There is nothing about that merger that makes any sense. There will be no economies of scale — GM is already too big. It will bring nothing to the marketplace — GM is already suffering from having way too many brands that stand for absolutely nothing. I wouldn’t trust the top management of either firm to run a lemonade stand. I’d consider funding it only if they fired everyone at the top of both firms.
What part of two wrongs don’t make a right do these people not understand?
Isn’t the idea of a merger to combine strengths? What is it that these companies combined would be able to do that they can’t do by themselves? GM already has too many brands. So it wants to add more? The nice thing about having these two merge is that it will bring together a lot of bad management and keep it away from other companies.