Editorial: General Motors Death Watch 242: The Straw Man Speaks
GM’s new CEO took to the airwaves on Sunday. If industry watchers had any doubts that Fritz Henderson is cut from the same cloth as his discredited, defenestrated predecessor, Henderson’s appearance on Meet The Press removed them. Like Rick Wagoner before him, Henderson’s facile, vague and evasive responses—re: the epic train wreck known as General Motors—revealed the full genius of the Talking Heads’ lyricists. “You’re talking a lot, but you’re not saying anything,” David Gregory forgot to interject. Alternatively, we could make this Churchillian: Never have so few said so little about so much. Even so, OMG.
There, on national TV, GM CEO Fritz Henderson showed the world (and GM customers) that he’s a craven corporate spinmeister. While trying to reassure everyone about everything, he singularly failed to reassure anyone about anything. In both tone and content, Henderson showed the wisdom of rule number one in How to Succeed in Business Without Really Trying: “get a job in a big firm.”
What GM needs is a CEO who can create root and branch reform. What they got is a man who went out of his way to tell denizens of GM’s poisonous corporate culture that not a single ass is in any danger of being kicked.
No surprise there. Red Ink Rick Wagoner’s hand-picked successor is a caretaker CEO, elevated to his promised position through primogeniture, rather than any talent for crisis management. As planned.
The Presidential Task Force on Automobiles (PTFOA) knew they were going to fire Rick Wagoner before the Treasury Department assigned them email accounts. Steve Rattner and friends had plenty of time to find a Mulally-like outsider ready, willing and able to triage GM ahead of, in the midst of, and after bankruptcy. Clearly, that’s not what the PTFOA wanted. What they wanted was what they got: a patsy.
Henderson is nothing more or less than a powerless placeholder. As the representative of “old” broken ass General Motors, the company’s new CEO is free to tell his company’s new masters how to run the terminally ill automaker. Henderson can advise the PTFOA which national and international brands should survive the forthcoming cull. He can nominate the new product mix. Anything. But the moment Henderson’s recommendations clash with the will of the people, the PTFOA can (and will) turn to him and say “What the fuck do YOU know about it?”
Which is both true and deeply worrying.
Suffice it to say, we could ask the PTFOA the same question with even LESS chance of a satisfactory answer. Although the majority of their members drive foreign cars, the task force has no more idea about successful automotive design, branding, marketing and sales than GM’s current management. If TTAC’s Best and Brightest are still arguing how to “save” GM, what chance do a bunch of politically appointed ex-journalists, lawyers and professional bureaucrats have?
Never mind. Despite their ignorance over industry matters, Barack’s automotive army is large and in charge. And they aim to keep it that way. Surrender power over GM’s fate to a new, independent, charismatic CEO? No way. Not yet, anyway. Not until the Treasury men have done whatever it is they need to do (they’ll figure that out as they go) to “protect the taxpayer.” Oh, and save the planet.
Yes, there is that. Pundits who read the PTFOA’s excoriation of GM’s vaporware Volt mistake the quango’s criticism of a tree-hugging Hail Mary as recognition that GM has to, you know, sell something that people want to buy—even if it’s not an electric car.
Wrong. President Obama’s base demands federal intervention within the evil, electric car killing industry. The feds must reduce global warming, eliminate SUVs and generally get American consumers to do the right thing, whether they want to or not. Believing that PTFOA have subsumed the president’s political agenda to the gods of ROI is, at best, naïve.
As Henderson’s appointment reveals, as the increasing chatter about a “quick” (i.e., non-judicial) bankruptcy indicates, the PTFOA are ensuring that THEY will decide which bits constitute the new, healthy “good” GM, and which bits are shunted into the old, “bad” GM. “Good” as in environmentally and union-friendly, built wherever supportive votes may live (think defense industry). “Bad” as in anything that isn’t environmentally and union-friendly, built outside fertile Democratic voting territory.
It won’t work. At this point, I can’t see GM emerging from bankruptcy as a lean, mean organization, building [at least] two brands’ worth of world class, competitive products.
Perhaps I’m wrong. Maybe the PTFOA will eventually step aside for the next presidential proxy. Maybe he’ll be the savvy kick ass CEO GM needs to survive. Until then, Henderson. As New York Times columnist Frank Rich said, change is traumatic. We ain’t seen nothing yet. Then again, maybe we have.
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