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Call it a two-for-one deal: GM is replacing Ken Cole, 62, its chief lobbyist, with two former AT&T employees – John Montford and Bob Ferguson. The development is the latest example of Ed Whitacre’s executive recruitment from outside the company. Both Montford and Ferguson worked under Whitacre at the telecommunications giant.
Ferguson, 50, headed up AT&T’s state regulatory affairs and made a stop working at Public Strategies Inc. (a business consulting firm that helps companies with their corporate reputation) before coming on board as GM’s vice president of government relations. Montford, 66, will take the position as Whitacre’s senior adviser and will oversee all of GM’s government affairs. He held a similar position at AT&T as senior vice president of state legislative affairs and also spent 14 years in the Texas Senate. Together, Montford and Ferguson will be responsible for GM’s lobbying efforts in Washington, D.C.
While many do not see lobbying as a vital part (or any part at all) of the auto trade, it is in fact just as important as other activities like R&D. Lobbying is part of that knitting that makes the world go round while helping Washington realize what our favorite automaker needs (such as bio-fuel and plug-in stations) or what is realistically possible (like CAFE MPG numbers).
I see this as a good move for The General. The power of two heads working together (rather than one) should make these lobbyists’ work that much more effective. Add to that the combined experience and successful careers of Montford and Ferguson at AT&T with Big Ed and you begin to get the idea of why I see this move as a plus. GM has all the more talent because of them.
But they better hit the ground running – as this year is sure to be intense and GM has no room for mistakes!
We have GM’s full presser after the break, in case you’re interested. (more…)
Apple COO Tim Cook
Apple COO Tim Cook is rumored to be the top choice for the position of CEO at General Motors. So says an anonymous tipster with an inside source at headhunting firm Spencer Stuart – the company tasked with filling the position at The General since the resignation of Fritz Henderson. It’s important to note that initiating an outside search for a senior executive is a significant departure from GM’s past hiring practices, which brought up employees within the company to fill the executive positions as they became more experienced.
We have no idea whether or not this is true, but the more we think of it, the more it begins to make sense: Cook is an instrumental part of the high-tech, hip, and innovative empire that Apple has become over the last few years – all qualities GM should aspire to achieve. He holds a B.S. in industrial engineering (Auburn University, 1982) and an M.B.A. from Duke. He was hired to Apple in 1988 By Apple CEO and Chairman Steve Jobs.
Cook is widely credited with dramatically increasing Apple’s margins, reducing inventory levels, and streamlining its supply chain by closing down factories and warehouses around the world. This move brought the end to Apple’s manufacturing activities, as the company outsources all manufacturing work these days. Even though cars are very different products compared to gadgets, the magic Apple has brought to the tech world is undeniable and may be exactly what GM needs to continue its successful turnaround.
Whether Cook would want the job at GM is an entirely different story. Would he want to leave Apple, the company he helped rebuild? Only one person knows the answer to that question.
For what it’s worth, he lead Apple as interim chief executive for a few months during 2004 and 2009, when Steve Jobs went on medical leave. Perhaps he thinks it’s time he took the reigns of a company. In fact, he has been rumored to be the replaced for Mr. Jobs, whenever he decided to retire.
If Cook accepts the position as CEO of General Motors, this would be the second time GM has reached outside the company for a C-level executive, the first time being new CFO Chris Liddell that GM hired away from Microsoft. As such, it would be very interesting to see how an an ex-Microsoft CFO works with an ex-Apple COO (this time in the CEO position). Keep in mind, though, that this is all still a rumor at this point.
[Source: Silicon Alley Insider]
Here’s the latest in the ongoing Saab live-or-die conundrum: it looks like GM has extended its December 31 bidding deadline for the Swedish brand to January 7. At least that much was said by Spyker Cars CEO Victor Muller, who is widely believed to be in charge of the boutique automaker’s plan to buy Saab. Muller has also told Reuters that he believes there are still several parties in the bidding process.
The extension of the deadline means that production of the all-new 9-5 and 9-3 convertible will begin on January 1, 2010, with Saab spokesperson Eric Geers saying, “We have the orders and we have to deliver them as usual. We also have the orders for the 9-3 and others. The factory has to continue again… we are preparing the wind-down process. At the same time we are open to options, to bids that come in. Therefore the deadline has also been dropped.”
So it looks like we will have to wait until next year to see how this will end. For what it’s worth, this particular blogger hopes that Saab doesn’t die and is picked up by Spyker, which seems to be looking forward to taking ownership of the 60-year-old Swedish brand and work its magic. This news comes after Spyker extended its offer to GM for Saab indefinitely. Of importance here is GM’s silence in all of this, especially considering how close we are to its original end-of-the-year deadline. Something must be abrewin’…
[Source: Reuters via Autoblog]
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For the week of December 28, 2009
The General has been served
It’s no secret that for the last few years, the average age of a Buick buyer has been 70 years old. Compare that to 52 – the median age of a new car buyer in the U.S. – and the problem Buick is facing becomes crystal clear (no offense to any seventy year-olds out there).
But all is not lost, as Buick has been making great strides in bringing in younger buyers. For example, the average age of a 2010 Buick LaCrosse buyer is 55. Even though a full three years above the median age of a new car buyer, it’s important to note that the LaCrosse may be purchased as a replacement vehicle for previous owners of Buick’s Lucerne boat barge sedan.
Brian Sweeney, the 42 year-old head of Buick-GMC, who took over from the famous 9-day exec Michael Richards – is looking to further decrease the average age of Buick buyers. Simply put, the plan involves the Buick Regal – the brand’s newest sedan that’s due to go on sale in the first quarter of 2011. The European-derived sedan will take advantage “experimental marketing” when pitched to the car buyer at large.
While we’re not sure what that will exactly entail, the folks at Buick feel that the drop in the median age of new LaCrosse customers was helped by making appearances at “coffee shops, art fairs, and wine festivals.” So perhaps you’ll see the upcoming Regal at gyms, hair salons, and downhill ski resorts, or maybe it will just follow the LaCrosse – its bigger brother – all over town. Whatever it may be, I feel it’s well worth it!
And even though GM is still hard at work designing all-new vehicles for Buick, the current line-up is at least on par with competing brands. In other words, Buick has the product to compete; what it needs now is to change market perception – something that can’t be accomplished with a set of commercials. As common sense would dictate, this will take time and grandiose effort on the part of Buick and GM, but – in the long run – I think it’s well worth it.
Most recently, the all-new LaCrosse has been nominated for the North American Car of The Year Award. It has also seen an increase in demand, prompting GM to run the Kansas City manufacturing facility (the birth place of the LaCrosse) 24/7.
Check out our high-res gallery of the all-new Buick Regal after the break. (more…)
December 20, 2009 will be written in the books as the day OnStar acquired its first subscriber in China – Mr. Lu Jianping from Yangzhou, Jiangsu Province and his new Cadillac Seville SLS.
This marks the first truly global expansion of GM’s OnStar telematics service, is available in the United States, Canada, and certain countries in Latin America.
We’re currently unsure what technology and carrier GM partnered with to deliver OnStar service in China (GM was not available for comment at time of publication). GM just let us know that China Telecom is the network provider in China. In the United States, GM uses Verizon’s CDMA network to deliver certain OnStar functionality.
Since GM operates through a number of partnerships with local automotive firms in China, it formed yet another Chinese joint venture to bring OnStar to market. Called Shanghai OnStar Telematics Co. Ltd., the firm is a joint venture between OnStar, LLC, (a wholly owned subsidiary of General Motors Company), Shanghai Automotive Industry Sales Co., Ltd (part of the SAIC Group), and Shanghai General Motors. The resulting organization became operational earlier in December.
At first, OnStar in China will be available only on Cadillac vehicles. The plan is to make the service eventually available across its full portfolio of products. All OnStar-equipped vehicles will be sold with one year of the service standard.
OnStar provides the following 14 services in China. (more…)
It seems as though the folks at GM have had a difficult time trying to figure out just what to do with this one. The 2010 Chevy Sail , which is on its way to China once again, has lived many lives: at once built in China, then called a Buick, and then rebadged as an Opel. Let’s hope this time around the make and model stick!
The new 2010 Chevy Sail is equipped with much of what its similar predecessors had – a lot of plastic and cheesy but practical styling. It will offer two engine options (not sure why). A stout 1.2L engine that puts out a whopping 78 horses – just enough to make your soda spill at a green light – and the larger 1.4L option – which may provide enough punch to knock your fries over too!
The engines will be backed up by either a 5-speed manual gearbox, or for the thrill seeker in you, a possible 4-speed automatic – which may be considered an “upgraded trim option.”
The low-end Chinese auto market is known for such vehicles, where cost is most often the deciding factor in a vehicle purchase. The Sail, which traces its roots back to the mid-90s Opel Corsa B, will cost $9,390 in China.
It will be interesting to see if the all-new Sail be making its way over to India, given how cozy GM has become with its Chinese partner SAIC. Nonetheless, we here at GM Authority hope that the Sail continues to be a popular choice for Chinese drivers and wish all those who partake in a street race the best of luck against this bad boy!
[Source: Autoblog]
GM might as well just draw the name out of a hat. With decorated new acquisitions from the outside such as Chris Liddell and Ed Whitacre, along with the legendary Bob Lutz and GM veteran Mark Reuss, the position of CEO is anybody’s race.
GM claims to want a CEO from the “outside”. But sometimes things just happen. Sometimes the best choice was home all along. Sometimes it’s not. Regardless, here are some of the highlights for GM’s four major contenders for what could currently be the Auto Industry’s most demanding job.
Out of the four, the one that could do the most for the company as a CEO is Mark Reuss – in this insightful blogger’s opinion. He’s done a great job at Holden and with the experience of keeping a car company profitable when selling to a market population just the size of Texas, he could do wonders as CEO. Or maybe by next week GM will have picked the new CEO from Mars. Because right now, anything is possible from The General.
As the Saab Sales Saga continues, a new rumor is sure to irritate Saab and GM fans alike: Swedish newspaper Dagens Industri is reporting that “sources within Saab Automobile are stating that GM now sees positive opportunities in a closing of Saab.” How so?
GM is said to be contemplating sticking a Buick badge onto the totally redesigned 9-5, which is said to be ready for manufacture. The plan was to get the all-new 9-5 into dealer showrooms around early 2010 – something that seems less of a possibility these days.
If impressions of the new 9-5 are to be believed, then it would be a huge waste to send the flagship sedan to the automotive graveyard.
But that’s not all! Another set of rumors involves GM raiding Saab’s parts and technology bin for future products, which may include a European revival of the Opel Senator.
It’s important to take rumors for what they are: unconfirmed stories and reports. We believe that these rumblings are very far from the actual truth, since GM seems to have learned its lesson when it comes to badge engineering.
However, if the rumors are true, then it would seem that Saab’s days are numbered, plain and simple. For what it’s worth, Spyker Cars (the only bidder in the race for Saab) belives that GM is telling suppliers that it will take roughly five years to completely wind-down the Swedish brand.
[Source: DN.se via Saabs United]
It took months for Sberbank attorneys to construct the 9,000 page contract that was supposed to seal the Opel/GM/Sberbank/Magna “deal-of-the-century.” 48 hours prior to the execution of that contract, the folks at GM decided to implement a “bail-out” of their own which left Sberbank and Magna wondering “why?” Sberbank is now following up GM’s bail out with a claim that The General owes them some money. You see, when Sberbank attorneys constructed the very extensive contract proposal, their time was compensated with a large amount of money. So much in fact, that it was enough to prompt Sberbank to take action.
Sberbank CEO Stefan Gref stated that Sberbank “spent an awful sum, because we had to address complex tasks,” and that he “[hoped] that we shall be able to settle all issues out of court, but we shall be prepared to defend our position in courts of law.” Magna CEO Frank Stronach stated that his company’s bills from the transaction “weren’t material” which leads me to believe that they will most likely move on from this and chock it up as a learning experience.
It is not exactly known whether or not a clause existed in the contract prohibiting GM from simply walking away from the deal, but I would have to say Sberbank’s chances of winning anything at all are slim. Technically speaking, the contract was never signed thus releasing GM of any liabilities to Sberbank and Magna. If you take a step back and look at it from the outside, it seems like GM just got a case of cold feet and walked away. It is just unfortunate that they got so close to the execution date before pulling the plug on the deal.
For continued coverage of this and other GM news, be sure to frequent GM Authority for the latest updates!
[Source: Auto News, sub. req.]
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Officially Official: 2012 Corvette Sees Much-Needed Upgrades 
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