By on April 10, 2010

GM’s CEO Ed Whitacre has told the remaining employees that his purges of senior management are complete. “I want to reassure you that the major leadership changes are behind us,” Whitacre wrote in a March 31 letter obtained by Bloomberg. “The team we have in place today is the team that will take us forward.”

Whitacre, 68, said he wrote the letter to quell employees’ anxiety. Apparently, they wondered who will be next. Never good for morale. “People who have been there a long time, even if they are doing a good job, they worry about getting the phone call because of all the turmoil,” said Joe Phillippi, president of consultant AutoTrends in Short Hills, New Jersey. “Getting out there and saying the team is in place is a good idea.”

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21 Comments on “GM Management Purges Over...”

  • avatar

    there were major changes in management and Docherty is still there?

  • avatar

    I’m out of GM as of April Fool’s Day. All I can say is that the remaining people on the team now apparently report more directly to Susan D.

  • avatar

    How much you think Joe Phillippi gets paid for offering up deep and profound opinions like that one?

  • avatar

    “…quell employees’ anxiety.”

    Emulate Stalinesqe-style purges for true anxiety.

  • avatar

    BS, the tree is going to continue shaking…

  • avatar
    Robert Schwartz

    Time for Death Watch II.

  • avatar

    First off, I’ll wager Whitacre sent the letter to Bloomberg… i.e., it was written to be leaked, not to reassure anyone at GM. (Not that it would have worked even reassurance was its purpose. Only a fool believes that sort of crap, and no one in the leadership ranks of a major corporation is politically stupid.)

    Second, it’s the wrong message, no matter why it was written. Boxing yourself in with “The team we have in place today is the team that will take us forward” isn’t wise when the future looks grim. GM will need goats to take the fall as sales stagnate, prices fall and the depression grinds downward, and none of those sacrificial billies will be named Whitacre.

    • 0 avatar
      John Horner

      “GM will need goats to take the fall as sales stagnate, prices fall and the depression grinds downward …. ”

      There is little evidence of a gathering depression. In fact, quite the opposite is what is actually going on in the broader economy. Yes, there are still big problems in the housing and construction industries, but not everything is horrible out there. Consumer spending is up, China ran a trade deficit! last month as the growing Chinese domestic economy hoovered up imports and so on.

      I own and run a smallish two (soon to be three) store retail operation and our revenues grew last year, we are continuing to grow further yet this year. I don’t see any significant signs of the just you wait, disaster is upon us nonsense that a certain fraction of the population is convinced they see.

    • 0 avatar

      While I don’t see 30’s style depression coming, I fear that the economy will not bounce back for years. I hope I am wrong! Good luck and good job with your business, if I lived near you I’d check it out! :-) PS: Are you hiring? In rains too much in WA State…

  • avatar

    “The team we have in place today is the team that will take us forward.”

    …to their next bankruptcy…..

  • avatar

    The beatings will continue till morale improves.

    I wish GM the best, it’s our money and our children’s money their gambling with. The bailout hasn’t made me totally unwilling to buy their products but of course they’ll have to compete with everybody else.

  • avatar

    don’t worry they will “show” enough profit in the next 6 months or so to allow the Banksters to repurchase the company…now devoid of bondholders, environmental issues, lawsuits, wages, benefits, and other various encumberments. which of course has been the plan all along, combined with plant closures and tax abatementsa they never could have arranged in good times.

    good conscience would have the USA retain ownership and obtain the capital appreciation to enable the citizenry to earn sizeable return on it’s investment. heck we could use the money.

    watch the PR start to increase how GM is so worthwhile and how the government needs to sell it off “as soon as possible”. believe only some of what you read folks…don’t be spoon fed.

    if GM is such a great investment after this “soon to be profit” appears, we shouldn’t be in any hurry to hand it back over to those criminals who stripped it bare and rinsed it thru their manufactured bankruptcy.

    visit my new FB page…The Buickman

    • 0 avatar

      And what would be the point of that? Take GM to the lame condition it was again? Or slowly sell it to China?

      I checked your FB page. Please put a superhero avatar that looks the part better

    • 0 avatar


      IF GM had exited BK with a truly ‘clean’ balance sheet, then I would be in complete agreement.

      As GM actually still has massive unfunded pension liabilities, and still isn’t profitable, I’m hard pressed to see how this is a medium-term win for any investor. Long-term, isn’t even a valid horizon. The day traders may make some dough though.

      I agree the Wall Streeters will figure out a way to do the IPO and skim several hundred million off the top. Thye’ll flip out long before the price ghoes to zero again. I just don’t see any big money in a GM buy-and-hold. (Unless Uncle Sugar somehow guarantees it, of course. Which they may.)

      (Apparently as do you) I rip on GM because it *could* do better. Sadly, it’s corporate culture is irretrievably broken (and has been since the late 60s) but, I know it could do better.

  • avatar

    Don’t worry, GM will reorganize, shuffle management, realign products again. It’s the one thing they are good at.

  • avatar

    “Major” changes are over. I wonder what the minor changes will be.

    Maybe he just means the remaining personnel will now have enough rope to hang themselves, rather than be purged.

  • avatar

    more BS from the GM “spin machine”. I’ll watch what I post-don’t need Christy Garwood to come after me with her ‘hummer’ Docherty heat seeking missile.

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