64 year-old Daniel Akerson has worn many hats during his career. An electrical engineer and financier by education, retired Naval office, and executive trade, Akerson is coming up on his third year of serving as the automaker’s chief executive. He believes that it is during his days in the telecom, technology, and private investment sectors that he learned the management lessons he is applying at GM today. The most important:
“Fundamentally, no kidding, it’s all about leadership. I don’t think you have to be a subject-matter expert,” Akerson told USA TODAY in an interview. “Complex organizations have many common challenges.”
Under Akerson’s watch, General Motors — which underwent a government-funded Chapter 11 bankruptcy in 2009 — has flourished. But whether GM’s success, notably consisting of climbing sales and record profits, is Akerson’s doing, or a combination of a recovering economy and a plethora of desirable automobiles that were approved, designed, and engineered before he took office, but launched during his tenure, is a different question.
Akerson joined GM’s board of directors in 2009 as the automaker was gong through bankruptcy restructuring. During his time on the board, Akerson witnessed the arrival and departure of two CEOs: ex-ATT chief Ed Whitacre, who resigned from the post to retire, and Fritz Henderson, who served as the “Old GM’s” CFO until being ousted by Whitacre.
Upon assuming the CEO position in September 2010, many industry watchers and analysts were concerned by his background. “Not a car guy”, they said, while wondering about Akerson’s ability to lead a global automaker that was in need of major change in culture, operations, and corporate structure, among other areas. Fortunately, leadership skills can usually be applied across industries.
“So, here we are four years out of bankruptcy and we’ve made $25 billion (before taxes and interest). I think that’s more than the company’s ever made in a four-year period,” Mr. Akerson said.
Industry watchers and car enthusiasts know that it takes three to four years to fully develop a vehicle, meaning that the vehicles that launched under Akerson’s leadership were not approved or developed under his watch. In fact, it will only in the next year or so that the fruits of Akerson’s labor will begin to show in GM’s product portfolio. But for the time being, the executive has had three years to apply his leadership and management expertise, and has done very well overall.
The Positives | The Negatives |
---|---|
Growing global sales | Lower-than-expected Chevrolet Malibu sales |
Growing profits | Modest sales of Chevrolet Volt |
Curbing losses & resolving major issues at GM Europe | Lack of general strategy between Opel and Chevrolet in Europe" |
Fortifying balance sheet | |
Successful IPO |
But even with the few-and-far-between mishaps, Akerson’s GM is dynamically addressing problem areas. The new 2013 Malibu, which wasn’t developed under Akerson’s directorship, hasn’t sold as well as some expected it to, is receiving a refresh a year after its launch (for the 2014 Malibu); the Volt has consistently received performance improvements and price drops, with the 2014 model year Volt getting a $5,000 reduction in its price tag. In addition, The General recently outlined a new strategy surrounding the mainstream Opel and Chevrolet brands in Europe, which have overlapped in the region for years, thereby competing with each other. The strategy isn’t as clear-cut as some would have liked to see, but it’s a start. All in all, it’s true that Akerson has inherited many problems created by the Old GM, doing his best to solve quickly and as effectively as possible.
And those who watch GM closely have likely noticed a change in GM’s culture, which now focuses on quickly solving. Even more important, long-term issues such as the unprofitability of The General’s European division, over-complexity, and towering pension obligations — are being addressed with zealous determination. And that’s not to mention a successful Initial Public Offering of thew New GM in 2010 — making it the largest initial public offering in U.S. history.
For his part, Akerson strongly believes in management by “walking around”. In fact, there are photos of the chief executive visiting the automaker’s various departments around the world and speaking to employees. Some, however, aren’t convinced that Akerson is responsible for GM’s recent successes.
“Put me in the category of being doubtful. He’s blessed with a burgeoning market and he’s blessed by having a line of products designed, primarily, long before he arrived,” says Gerald Meyers, crisis-management consultant, and professor at the University of Michigan.
“You have to give him credit for the accomplishment. But now comes the hard part,” says Meyers, who was the chief executive of American Motors from 1977 to 1982, when it partnered financially with France’s Renault to stay alive.
Ultimately, few can deny the positive ways in which Mr. Akerson has affected The General. But it will be the next several years, as vehicles developed under his watch come to market, and GM records profits against those new products, that will paint a clearer picture of his tenure.
Comments
Gm’s CEO has done a great job of getting the company to a place where people can feel really confident about buying any car and not worry about what people are going to say in terms of if its top notch! Does that mean GM hits on every car, no I don’t think any car maker can profess that or people can ask a car maker to do that!
If the Impala, XTS, ATS, Silverado ect… are representative of the types of Cars GM will produce down the road and he continues guide his managment team toward further excellence then I think we are looking at a CEO who knows what he is doing… However if we see more quick to launch vehicles without all their engine options and only a horrible eco version offered at launch then at best we should have the confidence that Dan is dealing with his minions who cause such chaos and confusion… Dan bottom line your doing great……
He’s been a very good leader. GM is on track and will cause a lot of noise in the next 5 to 10 years.
Dan has been doing what is required. He has kept the culture change and the discipline in place that has long been needed in GM.
While not a car guy he has let the car guys lead and supported them in cases when needed but made sure they present a good case before he gives his approve.
The reality is it takes a good finance man to run a company like this along with good car people Neither side are suited to do it alone. They is to get both to work together and trust each other expertise.
It is the place for a car guy to bring the best products and the finance guy to find the way to pay for it and make a profit. This is a tango and it take two to dance it.
As long as Dan keep the culture change in place GM will do it.
Some may hate him internally but that is what happens when you break a long streak of poor habits and bad culture.
Bad culture was the old GM Matrix and he has continued the move away.
Lutz and Whitaker brought many changes and he has kept them in place and built on them.
Well said, I hope he continues to keep the progress in motion.
Good job Mister Akerson. Please continue in the same road for the future of GM.
I hope my next Chevy Equinox will be a Voltec Equinox !!!
Pontiac would be nice! Too soon??
Pontiac is dead just like God is dead! Don’t believe me go ask Black Sabbath!
Just leave Pontiac alone were all better off!
I understand everyone has their own opinions (some better-some worse) But seriously be respectful of others religions, God is not dead and he saw you typing that on your keyboard and will consider it during your judgement day. . . . .
Comments like this don’t belong here IMO
I just wrote a comment. Sorry did not fill in the required info.
Here is my comment. Keep what you have now just improve on it. Go back to the rear wheel
Same as what we have now. The Cadillac 2008 SRX 4X4. This system worked fine we use to live in upstate New York Snow belt area and had no problem with this SUV .Also this was the last model built in the USA. All SRX’s are built in Mexico along with all the Pick-Up’s. Most small car’s are built there or Korea such as the Buick Encore. Chevy Cruze and other’s. I say bring back the All Cadillac Production back to the USA. And make them rear wheel drive you want 4-Wheel drive do the same as M/B or BMW. You did it before you can do it again. Be the best car Company in the USA.
So when BMW and MB can build cars outside Germany to take advantage of better manufacturing costs, you feel that Cadillac should be denied such privileges….just because.
Also, RWD isn’t the end all to be all and certainly doesn’t make a luxury car worse. Forthcoming BMW and MB products reflect this and I very much doubt that it will damage their public image as premier luxury brands.
Also, consider the present SRX. It handily outsells the first generation SRX despite being FWD. In fact, it’s Cadillac’s best selling vehicle.
http://www.goodcarbadcar.net/2011/01/cadillac-srx-sales-figures.html
I agree with you, where a car is built has no link to how good a car is, the only thing that makes a difference is how people view it which is sad!
Cars that are made in Canada and Mexico are just as good as cars made in the states! What matters is that the quality control is the same from plant to plant around the world!
Have you ever eaten in a mc Donalds in say france or England, well a big mac tastes the same there as here and this is because they keep quality control consistent
Albert do not believe the big lie that many want to believe and pass along so often. Believe it or not other countries can build as good of products as America. I hate to say that but it is true.
I get tired that so many people say everything from China is crap but the truth is there is good and crap from everywhere. We as Americans need to not underestimate Mexico, Korea and China as they are able and do build some things as well or better than we can as they often have new plants and technology that some of our older plants do not have.
The fact is a GM car say like a Cruze in Korea or Lordstown Ohio is built to the same standards give or take 1-2%. It is the design and build process that determines the build quality as there is not much skill left in the way cars are built today.
I have a Canadian build GMC and a Mexico Chevy and both have been problem free with perfect paint and no issues.
In fact with both models on their forums GM build quality is not an issue. I do see some supplier issues and some design issues but they are small.
I do agree that it would look good for status to day built in America and Americas Luxury car. It could be a good marketing point since there really are few cars from American brands that could compete or compare.
Kind of like the Corvette being touted as Americas Sports car.
The present SRX is very popular and is Canadian built. Most Americans will accept these cars as long as they are North American as being American built.
To be honest anymore I think many in this segment do not care as so many are driving South Carolina BMW’s and Alabama Benz thinking they have German cars and quality. The truth is they so as these cars are of the same standard as those built in Germany. American cars are no different.
There was a time where a car was built did make a difference but no longer with the standard we have today.
Smart man! I would be interested in talking cars and automotive industry stuff with you here’s my email [email protected]
Like I said Let GM be as they are now. They do not need other products just work on the one’s they have to make them better. Also the new SRX as one site has posted will be moving back to Tenn. as of Tue. Announcement. They are opening up the line they closed.
Also God is alive if you have accepted him as your saver. So If I was you I would take another look before I posted something as you just did.
“Also God is alive if you have accepted him as your saver.”
Yeah, like I’m going to believe made up junk from the bronze age. I’m too old to believe in gods, ghosts, santa claus, the tooth fairy, demons, and the easter bunny. I think you should act your age too and not believe, wholesale, the things that would mystify and amuse a 5 year old.
Well I see no reason to think god is anything but a sham! I said it here’s my email if you want to chat about off here!
Black Sabbath had it right!
[email protected]
If this god dude is watching and he wants to do something to me on judgement day then this god guy can go kiss my you know what! Like I said this is not the place to battle this so email me and we can there! [email protected]
Black Sabbath is a group named for a old Boris Karloff movie of the same name. Seen the guys liked Horror Movies and Comic books.
Second the guys in the group are not Satanist or non Christian. While not choir boys they all seem to believe in a God.
Ozzy Osbourne – Church of England
Tony Iommi – Catholic
Geezer Butler – Catholic (almost became a priest), now agnostic Believes in God but not religion
Bill Ward – unknown, but has stated he prays
Now back to the topic at hand.
Thumbs up Albert.
You are so awesome! I don’t suppose I’ve read something like this before.
So good to discover somebody with some original thoughts on this issue.
Really.. thanks for starting this up. This web site is something that
is needed on the web, someone with a little originality!
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