New chief: We need to reinvent GM -- and fast

[ProSense]

New chief: We need to reinvent GM -- and fast

By TIM HIGGINS • FREE PRESS BUSINESS WRITER • March 31, 2009

In his first press conference since becoming General Motors’ chief executive officer, Fritz Henderson this morning promised to get the job of fixing the troubled automaker completed but he cautioned that more of the automaker’s plants could close as part of the government’s tough requirements.

GM already said in its turnaround plan submitted to the government that it would close five plants. But Henderson said the company would “need to take further measures,” which could include more buyout programs to cut labor costs.

“We need to reinvent General Motors and we need to do it in a very, very abbreviated time period … so that we’re not spending our time careening from crisis to crisis,” Henderson said.

He reiterated that GM, which is staying afloat with a $13.4 billion U.S. government loan, would prefer to restructure the company outside of court but said that a government-sponsored bankruptcy was more probable, especially with the Obama administration’s demands for a balance sheet with less debt.

“We will get the job done. We will either do it out of court or we will do it in court,” Henderson said. “But we will get the job done in terms of recreating and reinventing General Motors as a competitive enterprise -- one that wins in the market place.”

more

They need to copy Ford's business model, and fast.

[Median Democrat]

1. No Mention Of GM's Bondholders

I have seen separate mention of them, but I do find it interesting given GM's poor current ratio and quick ratio that he does not address GM's debt situation.

[villager]

2. How about by making passenger rail cars?

n/t

[NYC_SKP]

3. The Original Army Jeep, Willys MB/Ford GPW was developed almost overnight.

Sure, there was less to them than the modern vehicle but we have fantastic capabilities now that we didn't have then.

"...By now the war was underway in Europe so the rush was on and the Army's tender was quite demanding. Company's bids were to be received by July 22 (just eleven days later). They were given 49 days to submit their first prototype, and 75 days for completion of 70 required test vehicles. The Army's Ordnance Technical Committee specifications were equally demanding: the vehicle would be four-wheel drive, have a crew of three, on a wheelbase of no more than 75 (later 80) inches and tracks no more than 47 inches, a fold-down windshield, 660 lb payload and be powered by an engine capable of 85 ft·lbf (115 N·m) of torque. The most daunting demand however was an empty weight of no more than 1300 lb (590 kg)...."

GM could develop a hybrid chassis/platform to work with various bodies (coupe, sedan, wagon, truck) much like VWs of the past, and have working prototypes in 75 days. Once proven, and with design details published, I believe many would pre-order and get their corporate ship back on the high seas.

Of course they should have done this decades ago, but some shit happened along the way, including the lack of leadership of Clinton, Reagan, and both Bushes, in the matter of efficiency, energy, forward looking technologies.

http://en.wikipedia.org/wiki/File:Covered_Willy%27s_jeep_Wings_Over_Wine_Country_2007.JPG

[Better Believe It]

4. So how far will he go to destroy jobs and the auto workers union?

Will it be enough to meet President Obama's demands?

[ProSense]

5. Here:

The president said the government will now stand behind warranties issued by the automakers.

Brian Fredline, president of UAW Local 602, which represents workers at the Lansing Delta Township assembly plant, found hope in Obama's remarks.

"I feel better after the speech than I did before," Fredline said. "He clearly reiterated that he is committed to a lean, mean, green, retooled and profitable domestic automotive industry. I was proud of our president today."

"He wants us to succeed," said Lori Odle, a GM employee for the past 30 years who will retire from the Lansing Delta Township factory today.

Lansing Mayor Virg Bernero, who has made the rounds of news shows and made other appearances and statements on the auto industry's behalf, agreed.

link

GM hasn't made any money in years. They need to do something.

[whosinpower]

6. Go small and go electric

There is currently a small car being manufactured and sold in India for under $5000.00

I know it does not stand up to the safety regulations we have here.
I know it is small.
I also know that if America reduces its speed limits, and is friendlier to small urban vehicles - they would sell well. If they were to keep the price range under $15 000.00 - and given that there is funding available for research on this, that none of the automakers have used......

Think of a small car that you can plug into your solar panel(installed at home) that you bought with the car to charge up its batteries to run to you work and home - with a range of 60 miles/charge.
Think of a new set of energy stations that can switch out batteries within minutes instead of charging your batteries -across the nation.

Not only will you be reducing your carbon footprint, you will lessen the demand for oil, you will be investing in renewable energy, and you will be supporting the new economy - the green one. You will also be slowing down, which would also help reduce the demand for oil.

I would buy into that.