Thursday, June 11, 2009

New CEO of GM Doesn’t Know About Cars

Is this a problem?

Edward E. Whitacre Jr. built AT&T Inc. into the biggest U.S. provider of telephone service over a 43-year-career. By his own admission, he becomes chairman of General Motors Corp. knowing nothing about the auto industry.

The 6-foot-4-inch Texan nicknamed “Big Ed” said steering the nation’s largest automaker after bankruptcy is “a public service.” People who know him say he can meet GM’s need for the type of transformation he orchestrated at Dallas-based AT&T.

“I don’t know anything about cars,” Whitacre, 67, said yesterday in an interview after his appointment. “A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.”

Not necessarily.  It depends on Whitacre’s management style.  If he is a manager who knows how to pick good people and empower them to do their jobs, then it’s not a problem.  If he’s a manager who micromanages and refuses to delegate, then it’s a problem. 

The biggest problem isn’t going to be the CEO.  The biggest problem is that the CEO won’t be allowed enough freedom of action to actually do what needs to be done.  The shackles that politicians put on him won’t let him.  More than likely, two years from now GM will still be in shambles and Whitacre will be made the fall guy. 

UPDATE: Oops, I misread it.  He won’t be CEO, but Chairman.  Frankly, the Chairman isn’t as involved in the day to day decisions of the company anyway, so it’s even less necessary that he have experience in the auto industry.  The strongest need is for him to be able to identify and promote good executives and hold them accountable.

(3) Comments
Posted by Owen at 0720 hrs
Economy + Politics + Politics - General

  1. Not a problem.  We have a President who doesn’t know squat about anything either.

    Posted by .(JavaScript must be enabled to view this email address) on June 11, 2009 at 1006 hrs


  2. He knows politics and is a big liberal.  What else does Obama need?

    Posted by .(JavaScript must be enabled to view this email address) on June 11, 2009 at 1046 hrs


  3. Alan Mulally used to work at Boeing and has a background in aeronautical engineering.  He’s now CEO at Ford (which seems to be doing better than GM these days)  So bringing in from ATT may not be as far fetched as it seems.  We’re talking about managing a big, complex organization, not designing bumpers.

    Posted by .(JavaScript must be enabled to view this email address) on June 11, 2009 at 1205 hrs


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