Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

GM's Whitacre Not Finished Cleaning House

March 4, 2010
4 min to read


Three months into the era of Big Ed Whitacre and this much is clear about his General Motors Co.: change isn't coming fast enough for the retired telecom exec-turned-auto CEO or for GM's active board of directors.


One of the chief reasons appears to be that there are still too many old GM hands near the top of the building. So the house cleaning of the executive ranks continues, however much the corporate spin tries to suggest otherwise, The Detroit News wrote in an editorial.

Ad Loading...


The latest departure is the inimitable Bob Lutz, the septuagenarian whose style, influence and knack for effective infighting unleashed GM's technical know-how and helped make (some of) the General's metal cool again. At 78, he can retire on his own terms knowing his tenure made GM's cars and trucks better than they otherwise would have been.


Not sure whether Whitacre will be able to say the same thing. For his management-by-musical-chairs will either find the right combination of people and assignments to make GM solidly profitable, or it will project panic, sow confusion and reap the kinds of internal resentment that delivers less performance, not more.


Three months after Whitacre ousted Fritz Henderson, the ex-CEO comes back as a highly paid consultant. Less than three months after Whitacre made Susan Docherty the U.S. sales and marketing wunderkind, she gets stripped of half the job because, as one executive explained to me, she was "getting swamped" by its scope.


Weeks after Whitacre relied on John F. Smith to smooth relations with European politicians and employees over GM's about-face on its plans for its Adam Opel GmbH unit in Germany, Smith gets pushed into an early retirement and the responsibility for managing strategic relationships falls to GM's jack-of-all-directors, Stephen Girsky.


GM is officially in the drama business -- which couldn't make it look more different than that other Motown turnaround project in which an outsider CEO focuses Ford Motor Co.'s long-timer Blue Oval talent on a cohesive, clearly defined plan and sticks with it.

Ad Loading...


Whitacre? Not so much, judging by the management churn that has "short-term tactics" written all over it. Where Ford's Alan Mulally and his four-point plan is by now the stuff of dull repetition, and where the results speak for themselves, there's uncertainty about whether Whitacre has a plan and, if so, what it actually may be.


"There's a hundred ways to run a company," a GM executive who recently left the company told me, "and he picked one -- just go sell more cars."


If only it were that simple. If only GM didn't have data, as it was explained to me, suggesting Cadillac doesn't resonate as much as hoped with folks looking for a car that says they've "made it." Or that the bailout of GM and the United Auto Workers gives customers a reason to steer clear of GM showrooms.


If only a flip-side of the global recall scandal rocking rival Toyota Motor Corp. didn't include the cash-rich Japanese automaker using sales incentives and cut-rate financing to woo wary customers -- a race GM may want to avoid but probably cannot as it strives to rebuild its sagging market share.


If only Ford's ability to execute an impressive turnaround didn't stand as an obvious example that Detroit automakers possess the talent to compete anywhere in the world, so long as they're led with clarity, purpose and a commitment to produce world-class vehicles.

Ad Loading...


"The thing that encourages me is that the official credo of governing now is, 'design, build and sell the best cars and trucks,' " Lutz told Automotive News in an interview after the Geneva Motor Show. "The company is on the right track."


Hard to tell at times like these. Lutz, a consultant to Whitacre until May 1, insists he was not asked to leave. He probably wasn't, chiefly because Whitacre is smart enough to know he can learn from Lutz -- and said as much in his obligatory remarks confirming Maximum Bob's looming exit.


This much is clear: The early days of Big Ed's era are all about distancing the new GM from the past and the people who defined much of the old GM -- Henderson at the top, Smith in planning, LaNeve in marketing, Cole in Washington, Young in finance, to name a few -- because the past also was marked by epic failure.


Fair enough. Also clear is that Whitacre is keen to retain the automotive cred that makes the preponderance of GM's cars and trucks contenders in key markets around the world. He should, because that's the whole ballgame.


Sacrificing the continuity of global product development, embodied in Vice Chairman Tom Stephens, for one, risks derailing the momentum that helped the automaker survive bankruptcy -- and regaining that mojo takes a whole 'nother kind of speed GM cannot afford to lose.

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →