GM executives will tell you the automaker is not the same entity it was even three years ago. Following the ignition switch recall fallout, the company began taking major steps to transform its corporate culture for the better without looking back.
GM product chief, Mark Reuss, knows there are skeptics, but he is determined to prove them wrong.
Reuss spoke with Automotive News regarding GM’s ongoing transformation and touched on why the skepticism has driven all of GM to become more disciplined and forward thinking.
“That is incredible motivation to prove people wrong, for me, and I know it is for Mary [Barra, GM CEO],” Reuss said.
Reuss traced his timeline with the company, which began in the 1980s along with now GM CEO, Mary Barra. He goes on to say the only thing he never saw from GM was a time when the automaker was truly on top of the world.
“We have seen it all,” Reuss said last week at the Automotive News World Congress. “The only thing we hadn’t really seen was a period of time when the company really, really did well, because that was a little before our time.”
The dynamic which exists between Barra and Reuss is pretty spectacular, as Reuss recalled a moment between the two in 2009. Reuss had recently returned from GM Holden and Barra was leading human resources.
“I can remember standing with her in a parking lot in some of the darkest days. She said to me, “If you are ever leaving this, you must tell me before you do. We had a pact,'” he stated.
“I said, “I am not, because I know what this company can be,'” Reuss said. “And she said, “Mark, I know the people in this company can win, and we have to enable the people in this company to win.'”
The major turning point indeed became the ignition switch recall, which has been linked to 124 deaths and cost GM billions of dollars in settlements and legal penalties.
“We used that to really change the way the company behaved, and also to change what was OK and wasn’t OK, and what we wanted to be,” said Reuss. “It was an unbelievably painful process.”
Since then, GM initiated the “Speak Up for Safety” program internally, which encourages workers to notify superiors of potential quality or safety issues. Reuss has previously said each initiative is a step towards GM becoming a zero defects automaker.
Comments
No Comments here? This is one of the most important things on going at GM and you ignore it?
The damaged culture goes back decades and got worse as we went through the 1980’s and up in to the new millennia.
The truth is Bob Lutz was the first to speak out on the damaged culture and the first to start the changes when he arrived. He was given trouble by many for upsetting the apple cart but it needed to be done.
The real worry was as they were coming out of the chapter 11 and when Bob left would someone carry on with what he started. The answer was yes in Mary and Mark. Both have been agents of change and even they still were getting push back on things.
This is where the ignition deal was a blessing in disguise. While it was a major problem it gave Mary and Mark the ammo to take on the old school and continue to clean house. If anything it silenced the critics and in many cases made some move to retire before their time.
GM’s culture was so bad the left hand did not know what the right was doing most of the time. It not only created quality issues but also did a lot of damage internally. This also wasted a lot of money too.
Please read the Bean Counters book by Bob Lutz and on a clear day you can see GM by John Delorean. They both outline the culture and how flawed it was even way back to the 50’s. It also answers the questions on GM ended up how they did and why the cars became so poor. The Chapter 11 did not happen over night and for only one reason.
GM today for the most part is a much better company. But there is still work to be done as they had so many issues that they can not be clears all that quickly.
I am glad to see Mark speak out on this and continue to push the changes.
Note I am serious read the Lutz book as he points out the things he found as he walked in the door at GM. He was shocked at what he found. That is coming from a man who has worked for more than one flawed company.
no doubt Scott3,
Bob Lutz’s Car Guy & Bean Counters was great.
I even got it on CD and have listened to it at work a few more times.
Thanks for the recommendations on Lutz’s “Bean Counters” and DeLorean’s “On A Clear Day You Can See General Motors”.
I also recommend “Billy Durant – Creator of General Motors” by Lawrence R Gustin, a great book with special insights into Flint Michigan and Durant-Dort. This book strongly implies that the DuPonts ruined Durant intentionally, and that they took GM from him not to make money from it but to ensure that it didn’t overtake their own powerful business. My guess from there is that the DuPont culture-of-mediocrity (necessary to keep GM from overtaking DuPont) is what Reuss Jr and Barra saw when they were young at GM.
Actually not enough credit goes to Ross Perot for speaking out against the culture at GM after they bought EDS in 1984. I was an EDS employee back then and am a GM one now. The company has definitely changed for the better but we still have a long way to go. Many of the things Ross spoke of in 1985 are still around.
Wasn’t his father, Lloyd, a leader in the culture he and Mary are trying to undo?
Just checking. Hugs!
Yes he was and the son is working to un do the sins of the father.
Lloyd was a product of the old system. But he was one that did less damage as some but he did contribute.
He also is responsible for the Buick GN and GNX.
His dad was VERY much one of the minority of folks trying to change GM culture back in the 70’s through the early 90’s.
Even though GM has been turning things around….
But how can the folks in the “Smart Buyer’s CLub” be persuaded that GM is making solid cars and the culture has changed??(Lutz uses this term to describe folks that buy Toyota’s and Honda’s regardless of other brands having a better alternative).
I guess it will be a long road
Yes that is why things like this can take years.
You have to re earn trust and prove yourself.
GM at least has a strong base to keep them going but it will take them time to grow it. Lesser company’s fail and go by the way side.
This is why FCA is at risk as they have a much smaller base and their growth has been much slower outside of Jeep. This leads to a narrow path forward and little margin for error.
GM did not squander their leading edge over night and like wise it is not going to be returned with one car and in one year. Brand loyalty is deep and hard to earn back once you lose it.
This is part of the 10 years to fix Cadillac and where it is rooted. It is a painful thing to say but honest.
Now if GM had not stemmed the flow they would never have a chance. Today they are back and still have a good shot to gain it back.
But todays market is much more competitive and they will have to kick and scratch for every sale just as the others and keep up with market changes or risk getting left behind.
No one out there Is so big they can not fail.
I worked for GM for 37 years as an electrician and see a couple areas that need to be improved.
First is establish an easy way for customers to give feedback that gets to the top leadership in GM.
The second is to improve the way employees are treated at the factory level and give them a way for feedback that gets to the top leadership in GM.
GM leaders need to be more in touch with their customers and factory employees.