andy82471

Being No. 1 no longer a top priority for GM

36 posts in this topic

http://www.leftlanenews.com/2006/06/14/wag...r-gms-top-goal/

General Motors boss Rick Wagoner said being the world’s largest automaker is not the company’s top priority anymore, according to the Wall Street Journal. “Would we like to stay number one? Sure. Is it the top priority of the company? No,” he said at a press conference in St. Petersburg, Russia, where the automaker is building a new plant. “We’re really focused on very strong profitability growth and balance-sheet strength in addition to driving the revenue side.” Recently, there has been a great deal of speculation that Toyota will soon surpass GM in terms of overall worldwide sales volume. However, Wagoner hasn’t conceded to losing the sales battle entirely. “If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

Edited by andy82471

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is there really any right way to take this news?  the part i dont get is why even mention it at all.

I guess he is just stating the inevitable. Although it is a bit sad coming out of Wagoner's mouth. I guess this is just a politically correct way of saying Toyota beat us. But hopefully GM will be motivated by their runners up status and try hard to regain the championship soon.

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I guess he is just stating the inevitable. Although it is a bit sad coming out of Wagoner's mouth. I guess this is just a politically correct way of saying Toyota beat us. But hopefully GM will be motivated by their runners up status and try hard to regain the championship soon.

Yeah... take back the crown while making money. I'm no fan of any car company, really, but I find Toyotas to be about as exciting as a nice afternoon nap. It may be what I need from time to time, but certainly nothing I'm going to be telling my firends about.

For fun, let's make a list of the exciting cars from each company

Toyota... uh... hmmm... no Celica, Supra, or anything approaching exciting...

GM... Solstice, Sky, GTO, Vette...

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Guest Joshiepoo

Wagoner needs to be thrown to the lions and replaced with someone who knows what they're doing. Someone who has grown up in a UAW household but couldn't get a job with the UAW or as a car salesman would do nicely. I'll impliment the Plan and GM will return to its former glory.

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If your not first profitable your never going to be or stay #1.

Making a profit is #1 priority and if you can do that who is #1 over all will take care of itself.

Profit=Better Products being develped and Better Products=Growth.

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build GREAT cars, price them right, make a profit on them and treat your customers well and market share will take care of itself.

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Being profitable is far more important than being sales leader!

GM should consolidate its brands, lowering the number of cars per brand and focusing more on brand identity and better cars!

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Yeah... either way I hope Toyota gets what is coming to them!

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Guest buickman

Being number one was never a question until "Red Ink Rick" began running the show. The real question is how did he get the job in the first place? That's the key, and it has absolutely nothing to do with qualifications.

Buickman

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Being number one was never a question until "Red Ink Rick" began running the show. The real question is how did he get the job in the first place? That's the key, and it has absolutely nothing to do with qualifications.

Buickman

GM produced and sold more vehicles globally last year than ever before. Last time I believe GM did that was in the 1970's.

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Being number one was never a question until "Red Ink Rick" began running the show. The real question is how did he get the job in the first place? That's the key, and it has absolutely nothing to do with qualifications.

Buickman

the #1 spot was in jeopardy ever since GM got lazy in the 70s. Same thing happened to Ford. They got lazy, and look at them: they ain't No. 2 anymore.

And not to be rude, but this thread has nothing to do with Wagoner's credentials- GM's problems began before Wagoner was in management.

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This one merits a great big "duh".

A healthy and profitable #2 is not a bad place to be. With that said, I still doubt Toyota will be able to pull it off.

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Suits me. I'd rather have a profitable, smaller GM that will be around in 10, 25, 50, or 100 years than a non-profitable larger GM that will be gone in 25.

The media will make a bigger deal out of it than it actually is.

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i can't wait for toyota to be #1 in sales because then the press will turn on them and start the process of destroying them.

I was wondering to myself if that would happen when they're number one... if not destroying them, perhaps they'll quit quoting the Toyota Corp's company line...

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I guess most of you missed this bit:

“If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

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I guess most of you missed this bit:

“If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

Seems like TOYOTA is doing just that. Increasing production at an incredible rate. No wonder their quality has taken a hammering lately.

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I guess most of you missed this bit:

“If we can keep growing where the opportunities are to grow […] someone’s going to have to hustle pretty hard to catch up with us like that,” he said.

It is easier to spell it out - CHINA/GM-DAT/EasterEurope(Russia).

Edited by evok

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Seems like TOYOTA is doing just that. Increasing production at an incredible rate.

His point was, GM is a lot bigger globally than what is reported in the US press and media. Less than half of GM's sales are in the US.

Edited by evok

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Yeah, this is a point that the media seems to keep missing. Even if GM drops to 20% market share in the U.S. and stabilizes there. Even if Toyota rises to 15-18% market share in the U.S. and stabalizes there - that doesn't necessarily spell doom for GM because of its successes in other areas.

However, it does beg the question that if GM can build profitable, fun small cars and trucks elsewhere, why can't they seem to get the car market right here?

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Yeah, this is a point that the media seems to keep missing.  Even if GM drops to 20% market share in the U.S. and stabilizes there. Even if Toyota rises to 15-18% market share in the U.S. and stabalizes there - that doesn't necessarily spell doom for GM because of its successes in other areas.

  However, it does beg the question that if GM can build profitable, fun small cars and trucks elsewhere, why can't they seem to get the car market right here?

I don't think eroding market share is a big deal for GM. You are right that worldwide GM is selling more cars than ever. And they will continue to grow in Eastern Europe, Russia and China in the forseable future. Their biggest problem is the legacy costs (aka healthcare, pension etc). Once that is brought under control (although I think at some point the government has to intervene in some way) GM could very well be the most profitable carmaker in the world. Remember that is the healthcare cost that responsible to a large extent to GM's market share erosion in North America. If GM could make money with all the cars they were selling they would have been the most profitable car company in the world.

However, it does beg the question that if GM can build profitable, fun small cars and trucks elsewhere, why can't they seem to get the car market right here?

Yes, but to do that, healthcare costs has to be under control. GM needs to renegotiate with the union soon. Right now GM isn't making any money on small cars. Hence, they have to rely on big SUVs and trucks for the bulk of their profits and suffer the wrath of misguided liberal columists like Tom Friedman.

Edited by andy82471

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