Editorial: General Motors Zombie Watch 13: Manic Street Preachers
While General Motors has downsized physically and financially, the nationalized American automaker still suffers from a monumental mental disorder. Today’s F5 PR tornado made that point pellucid. In fact, it’s hard to know where to begin the diagnosis. We might as well start with the “big news” on the vehicle destined to become GM’s Edsel. The General would have you believe that the Chevrolet Volt will achieve 230 miles per gallon in city driving. Yes, well, the Volt is supposed to surmount the first forty-miles on battery power alone. So I make that . . . zero miles per gallon; you know; as it’s not using any liquid fuel. Hey! Anyone remember [former] Car Czar Bob Lutz’s hand-wringing re: the Volt’s gas supply fouling because owners would never use the internal combustion engine? Like that. Quick question: what drugs are these guys on? More accurately, why aren’t they taking their meds?
News flash: General Motors is bi-polar. The company’s currently in the midst of a prolonged manic episode. To wit: on this very day, GM trumpeted the Volt’s [literally] incredible mileage claims AND unveiled a two-year product plan involving twenty-five models AND promised a new Cadillac to best BMW’s 3-Series AND revealed plans for a new internet microsite for its Advanced Design studio (“The Lab”) AND told taxpayers it would increase its $1.81 billion ad spend AND unveiled two new concept cars. That’s after yesterday’s announcement that GM is launching four websites to sell new cars via eBay, albeit in California and not Cadillac. It’s a wonder GM CEO Fritz Henderson didn’t promise to change GM’s constipated corporate culture while he was at it. Oh, wait. He did.
Extreme manic episodes can lead to psychotic symptoms, such as delusions and hallucinations. As it has in this case. The necktie-challenged CEO—Good God, man! I don’t have time to tie a Windsor knot!—clearly believes that he’s going to “do” the cultural transformation thing. And he’s going to do it via . . . committee! Yes, Fritz has appointed an executive committee to wean GM from its reliance on executive committees. A committee that includes the aforementioned aspiring octogenarian, GM lifer and CFO Ray Young, and former Caddy killer and current dealer eliminator Mark LaNeve. Expecting this carefully selected cast of recently elevated (at least in GM time) careerists to reform the automaker is like asking an orthodox Jew to run a Louisiana rib shack.
A person in a manic state has a short attention span. GM may be new (as if), but this symptom is not. How many nameplates is it now, Fritz? Anyone want to dig out Rick Wagoner’s protege’s promise on that score? And while you’re rooting around in GM’s fevered imagination, how about sourcing the press release for the “new” Cadillac STS? HUMMER H3 SUT? Saab anything? How far back do you want to go? Chevy Vega? X-Cars? Always with the promises. Never with the results. Do we really need to analyze the inherent inanity of today’s roll call of make-believe hits to prove the point? OK, then . . .
GM says it’s going to position the new Chevrolet Spark below the Chevrolet Aveo. Is that even possible? What are the chances that Buick will find sales with a car based on the same platform as the Chevrolet Cruze, only more beautiful and slightly longer? Who in their right mind thinks Buick has a future as a full-line automaker, sporting six models (à la Lexus)? Cadillac’s “flagship” XTS is going to be the same size as a Mercedes E-Class? I see fish. They’re swimming in a barrel. My finger grows weary.
I used to believe that GM would end with a whimper. They’d downsize, and downsize some more, and then a bit more, and then, eventually, after a few more mega-suckles on the taxpayer teat, after their market share faded into gray, they’d disappear into some other automaker’s portfolio and die. Now, I’m not so sure. While today’s product announcements are either complete bullshit or the same old bullshit in a new wrapper, and we can discount reports of an increased advertising spend as JALCOS (Just Another Lutzian Crock of Shit), GM seems to be heading for a massive crash.
As always, cash burn is the key. Come September’s financials, we’ll have a rough idea how long GM’s $50 billion federal infusion will last. Obviously, as long GM takes in less money than it spends, the only way is down. Expanding the number of models within the remaining four GM brands will do nothing to delay the company’s next face plant, and much to hasten it. But don’t tell New GM’s executives that. They’re in the midst of a hypomanic episode, joyfully creating plans for reinvention, oblivious to the fact that they’re recycling previous patterns. On the other hand, GM is already living within the confines of institutional care. How great is that?
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