ON THE TABLE #435

March 5, 2008

Frederick A. Henderson. Formerly GM's CFO, "Fritz" Henderson, 49, becomes President and Chief Operating Officer, taking a more prominent role in running the company while CEO Rick Wagoner focuses on "Big Picture" issues. This move sends a clear signal that Henderson is heir apparent to Wagoner's throne, and it's all part of The Plan down at GM. And no, it's not true that his close friends call him Froderick.

Rick Wagoner. In turning over a lot of the day-to-day operations of the company to newly-minted COO Fritz Henderson, GM's CEO is said to now be able to focus on "Big Picture" issues and other pressing matters facing the company. But in this analyst-driven environment/schmooze-fest that corporate America has become, that's what GM had to say. But thanks to us, here are the top ten things Rick Wagoner will really do now that he's free of monitoring the daily drudgery of GM's operations, taken from Rick's actual calendar: 10. The entire second half of March and first week of April is blocked-out for March Madness, except for... 9. Tiger opener on March 31st. I'm so there. 8. Kentucky Derby. Yes! 7. Pop in on GM dealership unannounced. 6. Wednesdays - movie matinee day! 5. Go to GM's offices in Washington D.C., put feet up, shoot the breeze. 4. Embed with Corvette Racing for the 24 Hours of Le Mans. 3. July, China. (rather than several trips, one long one!) 2. Reminder: Don't pop-in on GM dealership unannounced. And 1. Dancing with the Stars!

GM PR. GM announced a second-generation development of GM's Hybrid System with a new, more powerful lithium-ion battery at Geneva yesterday. Hitachi Vehicle Energy Ltd., a subsidiary of Tokyo-based Hitachi Ltd., will supply an advanced lithium-ion battery, which will help make the next-generation GM Hybrid System (due in 2010) nearly three times more powerful than the system it replaces. Overall fuel economy improvements for cars and trucks using the system are expected to be up to 20 percent, depending on engine and vehicle application. Excuse us for not seeing the real "news" here. On the one hand, technical development is always good, especially with the Green Frenzy going on right now. But since when does an incremental developmental step - and come on, because that's all it is - merit a big-deal media conference at a major auto show? GM's walking a fine line with its obsession to make "news" at auto shows just to keep the heat on Toyota. On the one hand they need to reinforce to everyone in the media that they are indeed in the "green" game. On the other hand, if they make one more pronouncement about what's coming two years from now, people are going to stop writing about it - and stop believing it.

2010. Judging by the sheer volume of technological breakthroughs either announced or promised by virtually every major automaker around the world for 2010, it's shaping up to be some kind of year. Our prediction? The hype will be bigger than the actual deliverables from the car companies.

Takeo Fukai. Speaking from Tokyo and doing his best Alfred E. Nueman, "What, Me Worry" impression, the Honda Motor Co. CEO refused to acknowledge last week that there was a recession going on in the U.S. "It is true that in states like Florida and California, the numbers are going down. But if you look at the U.S. as a whole, I don't think we're seeing a recession. There are still good business opportunities. There is firm demand for automobiles." Florida and California? Hmmm. And we have the proverbial Yellow Frickin' Brick Road here in Michigan and the Midwest, right, Takeo? Right.

Kia. Amazingly enough, the situation has gone from bad to worse at Kia, something we thought was impossible given the already grim circumstances. Automotive News is reporting that after burning through a series of reasoned, rational and experienced executives (three adjectives that could never be applied to your average Korean auto executive, by the way), Kia Motors America's new CEO, Byung Mo Ahn, made promises to dealers that things would improve, dramatically. But first things first, because Ahn's first step was to tell dealers that he wants them to sell 450,000 cars and trucks in 2008 - an incredible 47 percent more than in 2007, when Kia sales rose 3.8 percent to 305,473. In an industry chock full of delusional thinkers, the Koreans take the prize, hands down. Watch for legions of Kia dealers to start abandoning their franchises completely, because there's only just so much stupidity that these people can be expected to put up with - and Kia executives used up their stupid chips years ago.

The Wall Street Journal. Who said it was better to be late for a story rather than not show up at all? This headline in the WSJ yesterday - "Eight-Brand Pileup Dents GM's Turnaround Efforts" - attempted to shed light on the "too many models-too many divisions-too many dealers" conundrum that GM is facing using the Enclave-Outlook-Acadia-Traverse crossover crash in the market as example No. 1. Gee, where have we read that before? Way to be on top of it, guys.

Brett Favre. Thank you for 17 magnificent seasons, thank you for the countless memories but most important, thank you for playing the game the way it was meant to be played and enjoying every single moment of it.

 
(Photo by Axel Wierdemann for General Motors)
The Saab 9-X BioHybrid concept was unveiled in Geneva, Switzerland, Monday night, March 3, 2008, prior to the start of the Geneva International Motor Show. The 9-X signals the future design/package direction for a compact Saab notched below the 9-3 in the Saab lineup. The likelihood of something like it entering production? High.