ON THE TABLE

December 9, 2009

Publisher's Note: Brent Dewar is leaving his post as divisional manager of Chevrolet effective immediately, although his official last day will be April 1, 2010. He will assist in the transition for his replacement, Jim Campbell, who has been associated with Chevrolet for most of his career, but most recently had been in charge of GM's fleet operations. Dewar is said to have wanted to leave GM for some time to devote time to his family, but agreed to help Fritz Henderson out on Chevrolet. As for Michael Richards, the guy who was brought in to run the Buick-GMC division? He was let go after eight days. The "buzz" in the business bordered on the incredulous that he was even considered for the position in the first place, let alone hired. Which also makes me - and everyone else - wonder if anyone really knows what the hell they're doing down there. A giant bowl of Not Good, as we like to say. - PMD

"Big Ed" Whitacre, the GM Board. Publisher's Note: The decision to sack CEO Fritz Henderson on the eve of the L.A. Auto Show is a strong candidate for our 2009 AE Dimwit Move of the Year. With the company ready to make a very positive product splash with the new Buick Regal, Cadillac CTS Coupe, Chevrolet Cruze and the Volt - in its toughest market by far, a market where GM is basically nowhere in fact - Whitacre and the bumbling GM Board of Directors decide instead that it's the perfect time to fire the CEO. Just asking, but did anyone offer up even a shred of perspective before this happened, as in a "What the fuck are you guys thinking?" This move is a testament to the fact that Whitacre and the GM Board leave a lot to be desired when it comes to two extremely crucial things in this business: 1. The paramount importance of product, and 2. The equally pivotal role of crafting an image and the fundamental role PR has to play in that quest. GM doesn't get many opportunities to make a positive splash these days, but the table was set in L.A. for them to finally generate a large dose of positive press. Instead, they blow the whole thing to smithereens with their rampant incompetence. This company needs massive changes, and they need to start from the very top and go all the way down. That means Whitacre and 99 percent of the Board have to go - and soon - before they screw up anything else. - PMD

 GM. The Tubular Nation has enlisted Spencer Stuart to handle the search for their new CEO. Really? If you're that hell-bent on "new" and "change" down there, why not get a new search firm too? What have these guys done for you lately? Oh, that's right, "Big Ed." Yikes.

Mark Reuss. Publisher's Note: Mark Reuss is a True Believer and one of the good guys left in this business, and if given a genuine opportunity he will do great things for GM. But that's a gigantic "if." Here are my key recommendations for Mark going forward. 1. It's all about the product. Nothing else matters. 2. Anything less than segment-leading is unacceptable. Even "equal to the best" in segment is meaningless. 3. Put the pedal down, hard, like there's no tomorrow. Because guess what? There isn't if you and your team aren't successful. 4. Without great design you are nowhere. Encourage Ed Welburn and his talented group to keep doing exactly what they've been doing - blowing the roof of the place with drop-dead gorgeous work - and then stay out of the way. 5. Destroy the Dullards. There are still way too many people at GM who - if given the opportunity - will get in the way of meaningful change and progress if they're allowed to rear their ugly heads. They must be eradicated, or kept as far away from the product as possible until they can be. 6. Come up with a consistent set of ingredients that every GM vehicle must have no matter what the price point. I'll give you the first one - make sure it's lively and fun to drive - please. 7. The bean counters are there to assist you in bringing great products to market at competitive prices, otherwise they need to stay the hell out of the way. 8. You now have unfettered access to some of the most talented people in this business. Make sure they live up to their promise every damn day. 9. "Good Enough" are the two words you never want to hear uttered again. Make it a fireable offense. 10. It's all about the product. Nothing else matters.- PMD

GM. The company is investing $336 million in its existing Detroit-Hamtramck assembly plant - one of eight GM facilities in Michigan involved in the program - to build the Chevrolet Volt extended-range electric car. The company's total investment in the project is up to $700 million. 8,000 of the breakthrough vehicles will be assembled for sale in the 2011 model year, with the capacity to build many more.

Ford. Not to be out done, Ford has announced plans to invest $500 million in a program to build a new generation of hybrids, plug-in hybrids and batteries in the state of Michigan. Ford is asking Michigan lawmakers to come up with a package of tax credits to help support the investment. Ford says the program will eventually create as many as 1,000 new jobs.

Hyundai. The most talked about car at the L.A. Auto Show, hands down? No it wasn't the minimalist Porsche Boxster Spyder, or the Buick Regal, or Chevy Cruze or Cadillac CTS Coupe, or even the new Ford Fiesta. It was the fourth-generation 2011 Hyundai Sonata. It's that good. Scary good, in fact.

Porsche. From the "Thank You, Sir, May I Have Another" File, speaking of the Porsche Boxster Spyder - the no a/c, no radio, no power top, lightweight Boxster - getting back to the minimalist sports car idea is a noble quest, and we liked the sounds of it and love the looks of it. That is until we saw that Porsche jacked-up the price of the Spyder in typical Porsche fashion to the point that all it elicits from us now is WTF? $3200 over the standard Boxster S and almost a whopping $14,000 over the standard Boxster, to save 176 pounds? They don't refer to Porsche as The Greed Merchants for nothing, folks.

Sergio Marchionne. Publisher's Note: From "The More You Talk, The Worse It Gets" File, Marchionne tells the press in Washington this past Monday that, "We are not planning any miracles at Chrysler..." Oh, really, Sergio? And you don't think doubling sales in five years and adding almost five points of market share by 2014 constitutes a miracle? This after your sales continue to be in the dumper and you keep piling incentive cash on top of incentive cash to move the vehicles you have? You really need to get a grip, Sergio, because not only is your credibility at stake, but you're starting to sound a little whacky... - PMD

Jill Lajdziak. The longtime Saturn guru is leaving GM after 30 years effective at the end of this year. Her new gig? She is going to work for Roger Penske at smart, a wholly-owned subsidiary of Penske Automotive Group, Inc., effective January 1, 2010. Jill will be Vice President, Sales and Marketing and will lead the smart field sales organization, including directing all aspects of advertising, marketing and sales promotion for the smart brand, and will work directly with the smart dealer body to develop business opportunities. Chairman Roger Penske commented, "I am pleased that Jill has accepted our invitation to join smart as we enhance the position of the smart brand as part of the automotive landscape. With her background building the Saturn organization and her expertise in customer satisfaction, product marketing, and brand development, Jill is an outstanding fit, and I am confident that she will help us grow the smart brand." Congratulations, Jill!

WE'RE OPENING THE VAULT!

The AE wearables are back - and only in extremely limited quantities and sizes, we might add - and once they're gone, they're gone! We're starting with our most popular items, the classic AE Sweatshirt and AE Hat. Click on a PayPal button below to order yours now! (If you prefer to pay by check, please send us an email with AE STORE in the subject line, and we'll reserve your item.)

AE Sweatshirt - Crewneck, sturdy 80/20 cotton/poly, in black with throwback lettering - the original AE logo in our Chiller typeface shown above. Size XL only. 40 bucks, including shipping. US orders only.

AE Hat - Black with throwback lettering - the original AE logo in our Chiller typeface shown above. 25 bucks, including shipping. US orders only.

Publisher's Note: Check-out John McElroy's daily news show covering everything about the auto biz by clicking on the graphic below. Good stuff guaranteed. - PMD

See another live episode of "Autoline After Hours" hosted by Autoline Detroit's John McElroy, with Peter De Lorenzo and friends this Thursday evening, at 7:00PM EDT at www.autolinedetroit.tv.

 

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