As he falls on the sword of the downturn, Japanese-style, the chairman and chief executive of United States of America automotive maker General Motors (GM), Mr. Rick Wagoner has joined the ranks of other non-performing chief executives who once were? But Icheoku asks, will his leaving the position at GM, turn things around for the hyper-ventilating car maker, since people are not just buying cars or trucks these days? Icheoku says, GM makes good vehicles, admitted they are gas-guzzlers, but their Jeeps, Hummer, Chevrolet, Corvette, Cadillac and Buick are some of the most favorite brands plying many roads in many countries of the world. Personally, I have driven a Chevy before and it served me well; and a Jeep is a prospective future vehicle. The question should be why are people not buying vehicles, since even the peoples' beloved Toyota is also suffering the present draught in world vehicle sales?
Were Icheoku to be advising, it would have been better to allow Rick Wagoner implement whatever re-structuring programme that may be recommended by those knowledgeable both in the White House and Wall Street? Like Defence Minister Robert Gates, who was allowed to stay on and help tidy up affairs regarding the two on-going wars, Wagoner should have been allowed to re-organize GM instead of bringing on board a total stranger into such a complex corporation with a world-wide operations to try and figure out what is obvious? It is all about gas-consumption and gas-price, period! Anyway, the deed is done, the decision has been taken and Rick Wagoner is now, a former General Motors chief executive? Let us hope that the decision makers have their game plans right, otherwise it will be a disappointment galore to let Wagoner go without achieving the desired result?
Icheoku believes that as an insider, Rick Wagoner, would have been a better fit to lead GM through its present crisis? Whether there have been several years of missteps, mistakes and arrogance by the Detroit Three automakers, is not sufficiently a reason to throw away such a knowledgeable individual except there is a compelling reason to do so. All that Washington would have done was to compel a re-tooling and re-structuring of the auto industries instead of forcing one of their chief executive to fall on his own sword? That Wagoner relied for too long on sales of pickup trucks and sport utility vehicles for GM's profits should not be used against him; after-all that was what the market wanted until the surprised astronomical gasoline pricing that forced the two brands off the cliff? It was not only GM that was unprepared for the high gasoline price induced drastic market shift; as everyone was taken by surprise when gasoline prices hit $4 per gallon last year and it became too expensive and uneconomical to own and operate one such SUV or truck?
Were Icheoku to be advising, it would have been better to allow Rick Wagoner implement whatever re-structuring programme that may be recommended by those knowledgeable both in the White House and Wall Street? Like Defence Minister Robert Gates, who was allowed to stay on and help tidy up affairs regarding the two on-going wars, Wagoner should have been allowed to re-organize GM instead of bringing on board a total stranger into such a complex corporation with a world-wide operations to try and figure out what is obvious? It is all about gas-consumption and gas-price, period! Anyway, the deed is done, the decision has been taken and Rick Wagoner is now, a former General Motors chief executive? Let us hope that the decision makers have their game plans right, otherwise it will be a disappointment galore to let Wagoner go without achieving the desired result?
Icheoku believes that as an insider, Rick Wagoner, would have been a better fit to lead GM through its present crisis? Whether there have been several years of missteps, mistakes and arrogance by the Detroit Three automakers, is not sufficiently a reason to throw away such a knowledgeable individual except there is a compelling reason to do so. All that Washington would have done was to compel a re-tooling and re-structuring of the auto industries instead of forcing one of their chief executive to fall on his own sword? That Wagoner relied for too long on sales of pickup trucks and sport utility vehicles for GM's profits should not be used against him; after-all that was what the market wanted until the surprised astronomical gasoline pricing that forced the two brands off the cliff? It was not only GM that was unprepared for the high gasoline price induced drastic market shift; as everyone was taken by surprise when gasoline prices hit $4 per gallon last year and it became too expensive and uneconomical to own and operate one such SUV or truck? Mr Rick Wagoner, 56, assumed the now ex-position at General Motors in May 2003. He joined GM in 1977 and had previously served in various capacities for GM in the United States of America, Brazil and Europe. He became president and chief executive of GM in 2000 and chairman and CEO in 2003. It is also note-worthy that France's biggest car maker, Peugeot-Citroen, recently fired her chairman Christian Streiff, for reason of "extraordinary difficulties" in the automotive industry? Toyota Motor Corp.'s president, Katsuaki Watanabe, equally announced that he would be stepping down as a result of the meltdowns.
With his ouster, Rick Wagoner has become a member of former chief executives club, who were similarly forced out after the government took over their companies last year. The CEOs of mortgage giants Fannie Mae and Freddie Mac readily comes to mind and so also is Robert Willumstad, the former CEO of American International Group Inc., (AIG) who was booted out last September 2008, a day after the government pumped $85 billion into the insurer to keep it afloat. Icheoku while wishing Rick Wagoner good luck, also hopes that the Obama administration finds the answer they are looking for in revamping the auto industry, by his firing!
This is what happens when you lose your position as #1. It doesn't take long for people to start envisioning a world without you. GM started on the road to irrelevant years ago by focusing internally rather than on the market - missing all major shifts and becoming also-ran. Obama's team is telling everyone (auto and banking) that if you can't prove you know where the market is heading and demonstrate you can get back in front, then there's little reason to support you. Read more http://www.ThePhoenixPrinciple.com
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