Episode 244 – LaNeve Out At GM, Big Day for Delphi, Ford May Pass GM Soon
October 7th, 2009 at 12:00pm
Runtime 5:56
Mark LaNeve leaves General Motors. After four troubled years in bankruptcy, Delphi is finally emerging from Chapter 11. The National Highway Traffic Safety Administration is looking into rusting frames affecting Toyota Tundras. A Study predicts Ford will pass GM in market share in the U.S. by 2012. All that and more, plus John answers viewer questions in the “You Said It!” segment.
Transcript and Story Links after the jump . . .
Stop the presses, breaking news. Mark LaNeve, who had been running all sales for General Motors in North America, is leaving the company. His departure was announced this morning by GM president Fritz Henderson in a conference call with reporters. This shouldn’t have come to a surprise to anyone, since it’s almost like they set Mark up to fail. LeNeve will leave the auto industry all together. GM has not named a replacement.
Up next, we’ll be back with the news behind the headlines.
This is Autoline Daily for Wednesday, October 7, 2009. And now, the news.
Red letter day for Delphi. After four troubled years in bankruptcy, the supplier is finally emerging from Chapter 11. Spun off from General Motors a decade ago, Delphi never lived up to its expectations. In fact, as I remember, when Delphi was formed it had over 180,000 employees, the vast majority of whom worked in the United States. As of today, only 14,000 employees remain in America. And in other Delphi news, it announced that it has renamed its Saginaw Steering division. It will now be known as Nexteer Automotive.
Renault has run into a buzz saw in Russia. The AFP reports that a couple of years ago when everything looked super bright in the Russian market, Renault invested $1 billion to take a 25% stake in Auto VAZ. But with the collapse in the global economy, VAZ needs a lot more money and even Russian Prime Minister, Vladimir Putin has weighed in on the issue, warning Renault it better support VAZ or it will see its investment “diluted.” The Russian government is worried that mass layoffs in Tolyiatti, where VAZ is the largest employer could spill over into social unrest.
Every year since 1987, except one, Hyundai’s employees have gone on strike, but according to Bloomberg, that may change. Employees just elected a new union leader who is looking to curb strikes, that have cost the company nearly $10 billion and over one million units in lost production since the union’s formation in 1987.
The National Highway Traffic Safety Administration is looking into rusting frames affecting Toyota Tundras. According to the Detroit News, the investigation is looking into spare tires and brake lines coming off the frame due to severe corrosion on 2000 and 2001 model year Tundras. No recall has been issued yet and no accidents or injuries have been reported either.
Last month California was the second largest market for the new Ford Taurus, behind metro Detroit, a good sign that the automaker is finally changing perceptions on the coast. According to the Detroit Free Press, Ford under estimated demand for the Taurus in the nations largest car market, which had a 60% increase in sales overall last month. And in related news, the Freep also reports that research firm Global Insight predicts Ford will pass GM in market share in the U.S. by 2012 and will only be slightly behind Toyota. They also predict sales will rebound as high as 17 million units by 2014.
Coming up next, it’s time for me to respond to your questions and comments.
And now it’s time for some of your feedback.
This is “You Said It!” where I get to respond to you comments and questions.
Alex Kajdi wrote in about the collapse of the Saturn deal with Renault, and had this to say. “I want to suggest the following: What about inviting Roger onto Autoline After Hours?”
Well Alex that is a great suggestion, but I’ve been trying to get Roger Penske for a long time and can’t do it. I don’t know what it is. I can get just about anybody in this industry to come on the show. But I think I probably ticked him off when I heavily criticized the smart when it made its U.S. debut, because they will not even let me have one to test drive now.
Quite a few of you saw our report on the Red Flag limo which I described as “not that bad looking,” and everyone who wrote in took exception to my comment. Michael Brown caught the spirit of most reactions when he said, “Are you kidding me? I can’t get past that lame-looking front end. No way I’d be seen even posing next to a car like that.”
And Salvador G’s comment was, “Saying that Chinese car is “not a bad looking car” is like saying “the bearded lady at the circus, it’s not a bad looking woman.”
And our report on the Pontiac G8 coming back as a Chevrolet Caprice cop car, drew a lot of comments. But an eagle-eyed Andrew Charles pointed out, “The new Chevy Caprice is not a G8, it’s a much larger vehicle. Take a good look, the Caprice has a different 6-light greenhouse, a completely different C-pillar, a longer rear end with a larger trunk, a wider rear door, and if you look closely even different front quarter panels.”
And you’re right, it’s not a rebadged G8, but it did come off the same platform and is almost identical under the skin.
And that’s it for today’s top news in the global automotive industry. Thanks for watching, we’ll see you tomorrow.
Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog, The Auto Channel, vLane, WardsAuto.com and WWJ Newsradio 950
Share
Embed
Permalink
Comments (27)
October 7th, 2009 at 1:09 pm
That new chevy police are will do well IF it is the only rear wheel drive police car out there. The CV will be replaced by the Taurus, front wheel drive. Most police departments still want rear wheel drive cars and more and more are getting Chargers. So, If Dodge is still around and we can get Chargers the Chevy has a up hill battle.
October 7th, 2009 at 1:29 pm
About GM losing market. Who really cares? My only hope is that they concentrate on building the best cars in the world (value wise) as they are the only American car maker who can. Market share will take care of it’s self.
October 7th, 2009 at 1:34 pm
Hi John,
What has happened with Crabon Motors? They were showing a purpose built police around the country. Did they make it to production?
Also, miss seeing you on SPEED, hope they bring you back.
October 7th, 2009 at 1:40 pm
GM and other automakers need to give market share a break. No customer cares about the market share of a car or brand they may choose. Customers may care whether the brand or product is popular, but not about its market share.
October 7th, 2009 at 1:40 pm
LaNeve was grossly incompetent and his resignation led to celebrations in all kinds of automotive forums such as the “Truth about Cars” and “Autoblog”. It is telling that this still young person cannot find any other job in the entire world Auto industry.
“# Ken Post Says:
October 7th, 2009 at 1:29 pm
About GM losing market. Who really cares? My only hope is that they concentrate on building the best cars in the world (value wise) as they are the only American car maker who can. Market share will take care of it’s self.”
You seem to be in deep, deep denial.
FIRST OF, GM SURE cared about losing home games 35 years in a row to the imports, and they even had a BUTTON with the “29″ written on, meaning they wanted to hold on to a 29% market share, only a few years ago. And remember they used to have over 50% of the market a couple decades before that!!!
Now compare this 55% and 29% to the current 20% and the coming..10%!!!
Second of, the REASON they lost market share was exactly their GOD AWFUL products of the 70s and 80s and even 90s. Even the most LOYAL consumers eventually got fed UP!
Third of, GM can only sell its POS at deeply discounted prices. DO NOT delude yourself that, just because you can afford this “first price”, your total ownership COSTS will be similarly low. WRONG!
If you estimate the total lifetime cost until you nave to replace it, including its low resale value, fuel cost, and maintenance and esp. REPAIR, not ot mention the far inferior experience of enjoying it compared to having a Toyota or Honda equivalent (I did NOT mention the others, like Nissan etc, they are also cheap and bad like the domestics), then you would be far better of and consumers know it.
That is why H and T sell 450,000 camrys and 400,000 Accords and 350,000 civics and $300,000 corollas every year, when similar models from GM barely cross the 100k mark!
October 7th, 2009 at 1:51 pm
John Mc was correct in his review of the “Smart” (or, better, the “Dumb”, and guessing that this may be the reason Penske was ticked off etc.)
But I would expect Penske to be difficult to fetch for AAH anyway, he is not just some overpaid incompetent Big 3 exec like the LaNeve. Jon can get types like LaNeve very easily to cvome to any of his shows, but who cares about them?
October 7th, 2009 at 1:56 pm
I think that Mark LaNeve and Ray Young are leading the parade of GM exec’s out the door. GM is a totally different kind of company. It’s not going to be able to rely on selling in large volumes and thats what the old GM was all about. I’d expect a lot more upper management changes within the next year.
October 7th, 2009 at 2:02 pm
Re; police cars—- muscle cars would not be needed if all PDs had ignition kill guns. Why are chases still allowed , except to exhilerate
bored, overweight minions of the law?
October 7th, 2009 at 2:24 pm
Its sad that some of you can not just comment about the news story ( cars, companies, products etc) No some have to act like a child and make dumb comments about things that have nothing to do with the stories…
October 7th, 2009 at 2:32 pm
I agree with dcars on the volume question and I agree with Jim Sachetti that the reason GM lost market share was due to a product line that could not compete.
I think a big part of the recent troubles for the Detroit three comes from overly optimistic sales volume predictions for what they offered(usually based on the volume of the plant that will make the models in question, not on opportunity offered by the market). Some of them put so much emphasis on plant efficiency that they kept running at or near full tilt when inventories grew huge in 2007 and 2008. The volume exceeded the opportunity offered by the market.
I also think the US manufacturers need to take a hard look at how they can make money on lower volume models that bring in more money. Invest less in tooling and make the product a little harder to get, but at the same time make it worth waiting for.
I can see a company tweeking a Dodge Challenger or something else really cool so it has better interior quality, so it is easier to service and update with aftermarket options, and by making the body and drive train components more durable. If customers could know that was what they were getting, I think there would be a demand at a higher price.
The Detroit three need to stop trying to compete with low cost automakers, even after the recent restructuring. Almost all mass production by US based companies in other markets has gone overseas. Due to exchange rates we are seeing European manufacturers increase production here, but that will last only as long as the dollar is down. The exchange rates will not likely make a huge difference for what the Detroit three currently ship out, because not that many folks overseas want their cars (built in the US) as they are.
Successful US based manufacturing businesses here have a unique product that cannot be built or distributed cheaper by anyone else. Ford has seen a rebound lately, but in general the Detroit three have not been very successful for a long time.
October 7th, 2009 at 2:47 pm
John,
Thank you for reading my suggestion about inviting Roger Penske to Autoline After Hours.
I believe Roger Penske being a “True Auto Enthusiast and Business Leader” would pay a visit to Autoline After Hours if either Peter Delorenzo or David Welch would do the asking, and you were conveniently out of town on business. This would allow your viewers to ask questions and hear back directly from Roger on what are his thoughts regarding the GM/Saturn Deal and his thoughts on the future of the Global Auto Industry. I hope someone would relay this message to Roger Penske.
I think you are right about someone at GM setting up Mark LaNeve for failure. I did however disagree with Mark LaNeve regarding those small GM badges which he wanted ripped off all GM vehicles. Those small GM badges were meant as a outward symbol to unite GM vehicles under the GM Corporate Umbrella. In fact, I wrote to Rick Wagoner myself several years ago with the suggestion of adding those GM badges to their complete line up of vehicles. GM still needs to eliminate brands. Keep Cadillac as the luxury brand and the “New General Motors” would market all Non-Cadillac vehicles using one single advertising campaign / budget to reduce media costs and freeing up more resources to build the “World’s Best Vehicles”!
I think the future is bright for Ford vehicles, however what about those large lines of credit they took out just before the Global Recession hit? Will Ford be able to make those huge balloon payments when they are due?
October 7th, 2009 at 3:24 pm
Ok, that’s something throwing Laneve under the bus like that, Hey- JohnMc… Who do you think GM’s is going to fire next year, when they drop to a 31-32 year low??
-I wonder if I can apply for Pres. of Marketing and Sales at GM???
JohnMc, have you try sending a Personal letter to Mr. Penske, you know “when the phone doesn’t seem to work, there’s always mail.”
Oh- I do apologise for my remark on your comment about the Red Flag limo, JohnMc. However; that is an awful looking car and you seem serious.
October 7th, 2009 at 3:26 pm
I think GM can make it, they make some very nice products. This new Buick is more than what I expect from GM. I’m very impressed.
October 7th, 2009 at 3:37 pm
Salvador: LaNeve was not fired, he bailed out like most smart execs have and will do so in the comings months. I understand his replacement will be “Smiling” Bob.
October 7th, 2009 at 4:03 pm
I stopped buying GM due to some truly awful cars that I’ve owned, but I’m still hoping that they can make a come back. Many painful decisions are ahead of them to truly compete and a different way of doing business is required. I’ll get off my soap box now.
October 7th, 2009 at 7:27 pm
I agree with dcars. Some of the drivetrains spread cancer throughout the brands. I’m looking forward to some more interesting cars from GM, and not just from Cadillac.
October 7th, 2009 at 9:45 pm
Not looking for GM to do anything. The arrogance of GM continues to shine through the thin veneer of civility that bankruptcy and ruin has forced on them. Never, never will I be treated that way again by them!
Respect is due to Ford for several reasons (their epiphany that brought a changed attitude toward customer service about 10 years ago, their independence now, excellent new products, world class quality, great management).
I suspect that the GM diehards will always support their brand and keep it on life support for years to come.
I hear the same message repeated wherever car people congregate: “At least we have one company that has not accepted a handout; let’s support them!”
October 7th, 2009 at 10:30 pm
GM is like fish you catch, take them off the hook and drop them in the bottom of the boat and they flop around, not knowing what to do or where to go until, as their gills stop moving, they stop moving. Who is first to go, GM or Chrysler? Goodbye and farewell to both.
October 7th, 2009 at 11:43 pm
I’ve made it no secret how I despise GM.07 was the last new truck I bought from them and never again will they get my money.They are going down,and they damn sure deserve to.They earned it with every pos they produced and sold.
October 8th, 2009 at 12:49 am
Nah, I do question whether Mark Laneve call it quits or he was kindly (or pressure) ask to leave.
October 8th, 2009 at 8:11 am
“Richard S Says:
October 7th, 2009 at 9:45 pm
Not looking for GM to do anything. The arrogance of GM continues to shine through the thin veneer of civility that bankruptcy and ruin has forced on them.”
After that incompetent LaNeve was fired, and well before the celebrations in the streets ended, GM made a far more horrible move than hiring LaNeve, it replaced him with the WORST of its bunch, Susan Doherty of Buick. WHich proves how right you were above.
I also agree that those who have a domestic in their buying list, should first consider the only automaker that did NOT steal our tax dollars as a reward for its incompetence, and also the most promising one, since it had the wisdom to hire the former BOEING Chief, an Outsider, and who managed to save it!
October 8th, 2009 at 8:11 am
Which is, of course, FORD.
October 8th, 2009 at 8:22 am
“# dcars Says:
October 7th, 2009 at 1:56 pm
I think that Mark LaNeve and Ray Young are leading the parade of GM exec’s out the door. GM is a totally different kind of company. It’s not going to be able to rely on selling in large volumes and thats what the old GM was all about. I’d expect a lot more upper management changes within the next year.”
as a taxpayer, I was hoping you are right, but it took less than a day for the bad, old GM to rear its ugly head, and REPLACE LaNeve immediately with somebody even more clueless and unquialified… another inbred GM exec…and the worst of the bunch…Susan Doherty of Buick.
It is really depressing.
October 8th, 2009 at 8:26 am
I agree and It appears that just about everyone in the Automotive Media has tipped their hats to Ford. They used prudent judgement and did what had to be done with out government dollars.
October 8th, 2009 at 8:43 am
Another poster in Automotivenews got it right, reacting (very negatively) to the clueless LaNEve replacement:
What GM needs to succeed:
“JKNIGHT wrote:
1.)NEW BOARD OF DIRECTORS. Yeah I know it’s new. But where are people like Welch who understand how to streamline and manage? Where’s Steve Jobs on innovation?
2.)NEW CEO: No GM putzes please. Nissan got Ghosn. Ford got Mulaly. Surely GM can find someone better than Fritz?
3.)HEAD OF SALES: Don’t have a name but figure out who helped retool Hyundai and there’s a start.”
I agree 100%.
October 8th, 2009 at 10:52 am
dcars Says:
October 8th, 2009 at 8:26 am
“I agree and It appears that just about everyone in the Automotive Media has tipped their hats to Ford. They used prudent judgement and did what had to be done with out government dollars.”
…but neither Ford, nor the others of the “Detroit three” are interested in selling a car to me, since I like hatchbacks and small wagons. Ford dropped the Focus hatches and wagon. Chevy dropped the Malibu hatch, and the Chrysler entry, the Caliber, is too primative. The 2010 Caliber has a re-designed interior, though, so it may have a chance at my business.
October 8th, 2009 at 12:09 pm
As a Matrix XRS owner I agree with Kit. what happened to the tall hatchbacks? The 1st CUVs The vibe was killed because of the deal with Toyota and the Vibe is very pop. Penske should have had GM through the vibe into the deal he could keep selling them