On Autoline Extra: Will Bankruptcy save GM?

[jpd80]

This EXTRA clip is from: “People”

On this edition of Autoline EXTRA, John McElroy continues his discussion with Jim Dollinger, a Buick salesman who has his own plan to turnaround General Motors. Find out why Mr. Dollinger argues for a change in management and who he would like to see in charge of the company. He also discusses why GM shouldn’t force dealerships to close. Joining John in the discussion are David Kiley from Businessweek magazine and Paul Eisenstein from the Detroit Bureau.

 

Jim Dollinger sure is a typical salesman and I know a lot of other dealers must think like he does.

 

When he says that the problem with GM is not products and Brands,

it's leadership and unless that changes bankruptcy won't save GM.

 

So is he right?

[syrtran]

Jim Dollinger sure is a typical salesman and I know a lot of other dealers must think like he does.

 

When he says that the problem with GM is not products and Brands,

it's leadership and unless that changes bankruptcy won't save GM.

 

So is he right?

Disclaimer: I haven't listened to the whole thing.

 

Dollinger isn't the first person I'd consult about running GM. His idea, for the last several years, has been for GM to focus (not surprisingly) on Buick. He thinks Wagoner killed the Roadmaster and Oldsmobile. Those were dead, Jim, long before Wagoner had to give them mercy.

 

He does have a point, though. GM's problems are due to bad management. Not only the CEO (Wagoner actually had some decent ideas), but the Board of Directors, as well. These are the guys that keep the bureaucracy in place. They each have their own little fiefdoms within GM and don't want to give them up. These are the guys that people like Lutz, DeLorean, and Duntov have had to fight with, or circumvent, just to give us the good product. It's the one problem a well-regulated bankruptcy could solve (not that I expect a well-regulated bankruptcy).

[FordBuyer]

Disclaimer: I haven't listened to the whole thing.

 

Dollinger isn't the first person I'd consult about running GM. His idea, for the last several years, has been for GM to focus (not surprisingly) on Buick. He thinks Wagoner killed the Roadmaster and Oldsmobile. Those were dead, Jim, long before Wagoner had to give them mercy.

 

He does have a point, though. GM's problems are due to bad management. Not only the CEO (Wagoner actually had some decent ideas), but the Board of Directors, as well. These are the guys that keep the bureaucracy in place. They each have their own little fiefdoms within GM and don't want to give them up. These are the guys that people like Lutz, DeLorean, and Duntov have had to fight with, or circumvent, just to give us the good product. It's the one problem a well-regulated bankruptcy could solve (not that I expect a well-regulated bankruptcy).

 

I agree...GM has been a poorly run company for a very long time. Too much "inbreeding" at GM. I'm not impressed with Henderson and he is not going to turn this company around. I don't know that anyone at GM or whoever Obama Adm. picks can turn this company around. They do need an outsider with a more fresh, objective view and the ability of a Mulally to turn the company around. In my view, family control of Ford works in the long run in that they really care about the company and will do whatever it takes to turn the company around for survival. I don't know that anyone at GM cares enough to do same thing, The folks at GM would rather go down with the ship before sacrificing anything in favor of the greater good, in this case saving the company and someday thriving. It's so sad and will mean my state will be in recession for years and years. I can hope, but I don't see any reason to hope as of yet. My only hope for GM now is that somehow, someway it can stave off bankruptcy and complete restructuring out of bankruptcy court. I'm hoping Obama gives GM another month to pull it off. Not good to have both GM and Chrysler in bankruptcy at same time. Not good at all.

[jpd80]

The big difference with Ford was both the outsider CEO and the will to support him,

take away either one of those elements and not much is likely to change.

 

Dollinger is right about replacing GM's top brass but his plans for recovery are terminally flawed,

they may have worked 10 years ago but GM is way past the point of saving brands and dealerships.

Edited May 25, 2009 by jpd80

[SkapeGote]

Sup,

 

His passion is awesome, but his facts are skewed. They need to shed these brands to save what is viable. You can bring back a dead brand, you can't come back if the company is gone. I see why he is so upset though, nothing worse than watching your business go under. Especially when you didn't do anything wrong.

 

Skape

[jpd80]

Sup,

 

His passion is awesome, but his facts are skewed. They need to shed these brands to save what is viable. You can bring back a dead brand, you can't come back if the company is gone. I see why he is so upset though, nothing worse than watching your business go under. Especially when you didn't do anything wrong.

 

Skape

Hi Scape,

I see in previous posts, you mentioned a bit of legal work.

How do you see GM's bankruptcy panning out, like - is it going to descend into a messy dog fight?

Are GM & the Gov'mt painting too much blue sky assuming the Good GM could emerge from this quickly?

 

It all sounds too good to be true having so many complex issues cleared and GM sterilized in record time.

[630land]

Mr. Buickman's plan was to market more agressively to GM employees and their friends, But he would keep old dated cars, thinking they were "fine" and "just needed to be advertised better". :P

Edited May 27, 2009 by 630land

[SkapeGote]

Hi Scape,

I see in previous posts, you mentioned a bit of legal work.

How do you see GM's bankruptcy panning out, like - is it going to descend into a messy dog fight?

Are GM & the Gov'mt painting too much blue sky assuming the Good GM could emerge from this quickly?

 

It all sounds too good to be true having so many complex issues cleared and GM sterilized in record time.

 

Sup,

 

I talked to a friend of mine, he does bankruptcy cases, and he told me a bunch of things that could prove interesting. It could very well turn into a bunch of dogs fighting over the scraps of what is left of GM. Also, sometimes, they will not even allow you out of court for bankruptcy until all the assets are spoken for. As for the Gov'mt paint a way to blue of sky, you are damned right. If things got really bad, you could see this tied up in court for several years easy. Now with time being of the essence, I am sure the Obamastration will hurry this process, but there are no guarantees. If there is a sticking point with the Good GM, this could last awhile. I hold out hope for GM employees that this will not be the case, and from the looks of things the Gov'mt will step on some toes to get her done fast. Which in itself could be a bad thing.

 

Skape

[lfeg]

On a potential bankruptcy, It would probably follow the pattern of the Chrysler mess. It went to a hand picked judge who has made a mockery of existing bankruptcy law, procedure, and precedents to carry out the will of the exaulted leader.

 

On how GM got into the mess, upper management through the 70s and 80s laid the groundwork (with the participation of the UAW), and upper management of the 90s and early 00s just kept on digging deeper. But I put the lions share of the blame on the board of directors. There are only 3 words that describe the GM board of directors over the last 35 years: misfeasance, malfeasance, and nonfeasance. They did nothing except set executive pay at unreasonable levels while totaly ignoring what was going on with the company.