Sign in to follow this  
Followers 0
NINETY EIGHT REGENCY

GM CEO Fritz Henderson never quite fit in as leader

1 post in this topic

GM CEO Fritz Henderson never quite fit in as leader

MARK PHELAN • DETROIT FREE PRESS • DECEMBER 7, 2009 • FROM LANSING STATE JOURNAL

Post a Comment RecommendPrint this pageE-mail this articleShare

The ice under General Motors Co. CEO Fritz Henderson's feet began to look thin when the company's board of directors overruled his oft-repeated preference to sell a controlling interest in its Opel operations in Germany.

But Henderson had been on a slippery slope since the day he replaced Rick Wagoner this spring.

Under chairman and now interim CEO Ed Whitacre, GM's board has stamped its mark on the company with a series of swift decisions.

Henderson thought he had at least until the end of this month to secure his job - and GM's recovering U.S. sales were an early vindication of his leadership.

Saab Factor

He didn't, and the Detroit company's decision last week to keep its struggling Saab brand on life support for another month may have been the final straw. Henderson had publicly said one of GM's past failures had been a reluctance to pull the plug on failing operations.

He made it clear he wouldn't hesitate to shut Saab down if GM couldn't find a buyer for the quirky Swedish brand.

We may never know if he entered GM's board meeting Tuesday expecting to close the doors on Saab but the brand's one-month reprieve looks like yet another instance of the board listening to his counsel and going its own way.

Bolstered by Whitacre's take-charge attitude and board member Steven Girsky's profound understanding of the auto industry, GM's board has put away the rubber stamp.

Although the Opel and Saab sales did not go as Henderson envisioned, he can't be held responsible for GM's failed attempt to sell Saturn.

GM spent months working with Roger Penske to save the brand and its dealers, only to have Renault-Nissan pull the plug at the last minute by canceling its promise to provide Saturn with vehicles.

In very un-GM-like fashion, the board recently voted to postpone the sales launch of the vital 2011 Chevrolet Cruze compact by three months to ensure the car would offer a headline-grabbing 40-mpg EPA rating.

Henderson's exit may smooth GM's negotiations for European loans to restructure Opel and Vauxhall. Henderson was lightly regarded by GM's European managers and workers.

In meetings with GM employees, Whitacre told engineers and designers creating new cars to contact him directly when they see management making a decision that will put a subpar vehicle on the road.

It remains to be seen whether Whitacre still listens now that he's part of that management team.

New Direction

GM's new board members - appointed by the U.S. government and the United Auto Workers union, GM's largest stockholders - always made it clear they wanted a complete break from the insular, unimaginative culture that ruled GM for decades.

They began that process when they ousted Wagoner, but it was clear they never had complete faith in Henderson, who had been Wagoner's hand-picked lieutenant.

Henderson was on thin ice from the day he got the job. Tuesday, it cracked.

0

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   You have pasted content with formatting.   Remove formatting

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

Sign in to follow this  
Followers 0