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Billionaire And Former GM Board Member Ross Perot Dies At 89

Ross Perot, the self-made Texas billionaire who was once a GM board member, has died at age 89 last Tuesday in Dallas. In the early 1980s, Perot became General Motors’ largest individual shareholder.

Perrot, who twice ran for president as a third-party candidate, often criticized General Motors bureaucracy and politics, calling it sluggish and bloated. He is well known for the following quote: “We’ve got to nuke the GM system.”

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In 1962, with only $1,000 loaned from his wife Margot, Perot founded Electronic Data Systems (EDS). The products ended up accounting for about 80 percent of the computer business.

Perot was so devoted to his company that he sent a team of 15 commandos to Tehran, the capital of Iran, to start a mass prison break so he could free two EDS employees.

In 1984, EDS was sold to General Motors for $2.55 billion. At the time, GM wanted EDS for its computer expertise, as The General believed that EDS systems would help it handle its bookkeeping, digitize its factories and better integrate its existing computer systems.

That deal not only secured Perot as GM’s largest shareholder, it also transformed EDS into the greatest computer organization in the world. In 1986, Ross Perot resigned from the board as chairman and CEO of EDS due to a professional conflict with then-GM CEO, Roger B. Smith. General Motors ended up buying all of Perot’s GM stock for $750 million.

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Perrot then attempted to kickstart his own rival company called Perot Systems, which led to more conflict with GM due to a noncomplete buyout clause. Perot was eventually left to go his separate way. Interestingly, 150 of Perot Systems’ first 190 employees came from EDS.

Perrot is remembered as one of the folks who could have successfully prevented Roger Smith’s destruction of GM. Today, we salute this flamboyant and visionary individual who had a deep impact on the entire General Motors organization. May he rest in peace.

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Source: The Detroit Press

Automotive Journalist from Canada.

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Comments

  1. Few words have ever rung so true. Roger Smith’s destruction of GM.

    Reply
    1. Yes, indeed. I am not necessarily a fan of filmaker Michael Moore but his portrait of a fallen GM at the hands of Roger B. Smith was a prescient piece. In the 30 years since that film’s release, GM has continued to stumble and no one seems capable of putting GM back on a path to the dominant position it once held.

      Ross Perot understood the problem too and though he was an eccentric character who was one at once a bit goofy but also a brilliant observer, I wonder sometimes if he might not have understood GM and its then only festering problems far more than lifer Smith ever did.

      Reply
  2. Ross Perot was ahead of his time as he knew and recognized that the political system in this country was broken as Perot was confident of being able to do better; but Perot didn’t have the guts to do what Donald Trump did was to pick a political party as one would think that Ross Perot may have had a better chance if he entered as either a Republican or Democrat.

    Reply
  3. Perot recognized the incompetent and inept management of GM over 30 years ago. Unfortunately, the management of today’s GM is no better and in many cases worse.

    Reply

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