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Econwatch
June 10, 2009 1:25 PM

New GM Chairman: "I Don't Know Anything About Cars"

By
Anna Aulova
Topics
GM
(AP)

Edward E. Whitacre Jr has been appointed as the new chairman of GM and will take post after the company emerges from chapter 11, despite admittedly knowing nothing about cars.

"I don't know anything about cars," Whitacre, the 67-year-old former chairman of AT&T, said yesterday in an interview with Bloomberg News after his appointment. "A business is a business, and I think I can learn about cars. I'm not that old, and I think the business principles are the same."

But there has been concern in some quarters over his ability to lead the nation's biggest auto company out of bankruptcy. According to the Associated Press, Telecom industry analyst Victor Schnee called Whitacre's appointment "bizarre." Although Schnee admits that Whitacre has accomplished a great deal, he does not have much confidence in his ability to run GM better than previous management.

However, others seem to be more positive in the new appointee. "GM is not now about just making cars," Jim Hall, an auto industry consultant and former GM engineer, told Bloomberg. "It's about re-creating itself as a 21st-century car company. They have to have somebody at the top that understands they have to make a new GM.

Michael Robinet, an automotive analyst at CSM Worldwide Inc. told Bloomberg, "Let's face it: The chairman is not necessarily operational… The chairman is about ensuring a strategy is followed."

GM's interim chairmen Kent Kresa said that Whitacre was "an excellent choice" after being recommended for the position by Steve Rattener, one of President Obama's senior automotive advisers.

"We need to bring back the confidence of the American public in this company," Kent Kresa, the automaker's interim chairman, told the New York Times. "Having a strong board is a big piece of that."

Add a Comment See all 19 Comments
by zipperfalcon August 25, 2009 2:56 PM EDT
Welcome to Government Motors ! You don't need to know anything about anything to work here - you just need to know somebody to work here. Oh - and by the way... take that stupid 'excellence' thing off the cars, it just adds weight and hurts the fuel economy.
Reply to this comment
by wal1294 July 9, 2009 1:42 PM EDT
I would like Mr. Whitacre to explain the "sound business reason" that the last GM dealer in my town of 40,000 lost their franchise when they were rated #1 in customer service in our region out of 177 dealers by GM . They were(are) profitable!!!I bought a new GMC truck from them last November for that reason. Apparently the people who made the decision have no idea what American consumers look for !!!!!! I would hope that the FED, who appear to have a lot to learn too, had something to do with that poor decision as well!!!!! I would hope that Graham Motor Company has their franchise reinstated.
Reply to this comment
by midlclass June 16, 2009 11:09 AM EDT
s made is not the fault of president obama or bush but due to wall st greed and corruption
Reply to this comment
by u-r-right June 15, 2009 9:01 PM EDT
I don't know nothin' about this new format. Reckon it'll take some getting used to.
Reply to this comment
by airboatboy June 12, 2009 3:41 PM EDT
How appropriate! The Messiah doesn't know anything about presiding over this country either and is a dismal failure after creating more debt than all our former presidents put together, in just 5 months!
by peggy97478 June 10, 2009 11:38 AM PDT


Yeah, like 8 years of Bush has nothing to do with it. I honestly think that if Bush could of ran again there would have been people stupid enough to vote for him again after reading some of their posts.
Reply to this comment
by aldon61 June 11, 2009 9:29 AM EDT
Like it or not, the man is right. Business is business, whether it's autos or widgits, the principals are the same: Grow revenue, reduce expenses. Around 30 years ago I was asked to run a business unit that financed manufactured home. I didn't know squat about the industry, so I hired people who did and put them on my staff as a direct report. Results? The first year, we grew the business 10% and reduced expenses by over 20%. Oh, BTW, we were budgeted for a loss, as that unit was going to be sold or disbanded. It never happened!
Reply to this comment
by nolies74621 June 11, 2009 8:17 AM EDT
Neither does BHO but that did'nt stop him.
Reply to this comment
by the74blaster June 10, 2009 11:57 PM EDT
I wish they would at least fake some expertise. If he doesn't know cars then what good is he for a car company? A good delegater is what many of these executives really are. Good at reading a teleprompter and motivating the peons??? Good at attending meeting and using large words???? Good at axing jobs and saving the company some money because of such like "Chainsaw" Al????

Honestly, any one of us could be an executive like this, The difference is we don't have a horseshoe shoved up our bums. It has to be pure luck or knowing other cronies in high places.

What they are getting paid is completely out of control. Think how many jobs could be saved if they would cut their salaries and bonuses at least in half.

Enough is enough.
Posted by u-r-right at 5:47 PM : Jun 10, 2009


Good post. I have to say you are right!

I would like to offer my services to GM to be thier CEO. I only need a salary of 300K and a company car without any bonus.

Where do I apply. In fact let me make the personnel decisions and i promise I will cut operating costs by tens of millions per year by the changes I make in the executive suite.

BTW, does anyone know the laws associated with sponsoring Indian students holding MBAs?
Reply to this comment
by nopork June 10, 2009 9:31 PM EDT
Obama and ALL his cronies avoid the constitution and want to steal our God given freedoms. And by the he is not GOD
Reply to this comment
by u-r-right June 10, 2009 8:47 PM EDT
I wish they would at least fake some expertise. If he doesn't know cars then what good is he for a car company? A good delegater is what many of these executives really are. Good at reading a teleprompter and motivating the peons??? Good at attending meeting and using large words???? Good at axing jobs and saving the company some money because of such like "Chainsaw" Al????

Honestly, any one of us could be an executive like this, The difference is we don't have a horseshoe shoved up our bums. It has to be pure luck or knowing other cronies in high places.

What they are getting paid is completely out of control. Think how many jobs could be saved if they would cut their salaries and bonuses at least in half.

Enough is enough.
Reply to this comment
See all 19 Comments
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