 Vol. 2, Issue 1 GM Communications, Detroit Spring 2001 Improving relationships a mark of improved GM Success in the auto business is the result of many things coming together simultaneously. Excellent products, strong leadership, a lean organization and constant attention to costs among them. As important a factor is the quality of an automaker’s relationships – with customers, suppliers, dealers, employees and their unions. That point has been driven home recently with the problems at some of our global competitors -- more proof that even a well-run company can suffer quickly if it takes its eyes off any of the things that made it run well. That said, we think it’s worth noting as well how quickly things can improve when leadership is focused on those important relationships. At GM, it wasn’t that long ago that the relations with our unions, dealers and suppliers were less than harmonious. Although we know there’s still room for improvement, we think the progress we’ve made with all those groups bodes well for GM’s future growth and prosperity: *Suppliers have praised GM for its approach of encouraging cost-saving ideas by sharing the fruits of those savings. Since December, suppliers have submitted more than 4,420 ideas worldwide, and we have groups of engineers and purchasing people dedicated to assessing their feasibility quickly. "It’s interesting. General Motors reversed roles with Chrysler," Neil DeKoker, president of the Original Equipment Supplier Association, said recently on the TV program Autoline Detroit. By working with suppliers earlier in the design and engineering process, GM has been able to reduce the weigh and cost of its new midsize SUVs and incorporate more supplier-generated innovations. As Joe Miller of The Detroit News recently reported, the new midsize SUV lineup "showcases GM’s new willingness to pay for innovative technology from its suppliers." Many suppliers now consider GM their company of choice – a major turnaround. *Dealers have said they’re impressed with the steps Bill Lovejoy and Darwin Clark have taken to ensure their opinions and suggestions are considered in every action GM takes affecting dealers. "GM and its dealers are getting back on the same page," Harold B. Wells, a longtime GM dealer in Whiteville, N.C., recently said. "We no longer see them as a competitor." The cooperation GM has received from dealers in test-marketing its latest e-commerce initiatives is a good example of how we have rebuilt trust with our dealers. *Union leaders acknowledge the tremendous change in relations with GM since the costly strikes of 1998, and say it’s clear that a commitment to that strong relationship has come from the top ranks. In addition to improving lines of communication at the highest levels, GM has taken several steps to improve employee access to company benefits and information via the Internet and through its innovative Internet access agreement with America Online. And there’s more to come. Stay tuned.
Most of us just call him "Mueller." Like Ali or Madonna – one name says it all. If you were an auto writer in Detroit anytime over the past 28 years, chances are you came to depend on John Mueller as a trusted source of information at GM, an honest PR guy who always returned calls and never lost his sense of humor. Despite the protests and pleadings of his colleagues, Mueller retired March 1 after nearly three decades of service to GM. He’s a true PR professional, a former journalist (at the Detroit Free Press) who understood the needs of reporters and served as a mentor to countless staffers at GM Communications. There was ample evidence of his popularity at his "surprise" going-away party in downtown Detroit: About 200 reporters, editors, colleagues, friends and executives showed up to congratulate Mueller, including Rick Wagoner. Mueller held several Communications jobs over the years, ending his career as director of corporate international communications. Colleagues and journalists from around the world sent him congratulatory emails during his last few weeks on the job. Executives noted his positive outlook, even when things at GM were looking grim and his job was among the toughest. Wagoner noted how Mueller had a way of persuading executives to follow his advice. "I’m really sorry to see you go, but I know you’ve earned it," Wagoner said in a videotape of tributes from friends and colleagues. "You’ve worked hard - many years. You’ve got a group of friends around the world, both GM employees that you’ve worked with, but also people from the outside, people from the press that you’ve supported for many years. And I’m sure if I ask them what they think of you, they’d say the same thing that I do, ‘He’s a great guy. You couldn’t ask for a better representative of General Motors.’" GM Chairman Jack Smith had this to say: "You’ve done a great job for General Motors. The only thing that bothers me, is that with your retiring, it looks like now I’m the oldest one left at General Motors!" The outpouring of affection at his going-away party moved Mueller. "Enjoy life and treat each other with kindness because, in the end, there is nothing else but the friends you have made, " he said later, summing up his feelings. "I have been blessed to have so many friends for without them, I would be nothing." Mueller can be reached in retirement at muellerjohnf@aol.com. His first post-retirement "assignment" was to spend time with his grandchildren in Maryland, followed by trips to China, Tibet, the rain forests of Costa Rica and the golf course.
George, the late magazine started by the late John Kennedy Jr., took a stab at listing the "50 most powerful people in politics" in its recent farewell issue. To his surprise, Rick Wagoner landed on the dubious list at No. 38 -- well behind NBC-TV’s Tim Russert (No. 25) and just ahead of Laura Bush (No. 41). "Wagoner will get much, if not all, of what he wants from Washington because Washington can’t afford to ignore him; if automakers have a bad year, so does the economy," George opined. Well, we’ll see. The now-defunct magazine also gave us an indication of why, perhaps, it failed. In two brief paragraphs about Rick, it managed to make three errors (including perpetuating the most common misquote in GM history – see story on next page).
Urban legend watch: What’s good for GM? It’s perhaps the most widely misquoted sentence in American business and politics, and certainly the most enduring: That former GM President Charles E. Wilson allegedly told a Senate committee hearing, "What’s good for General Motors is good for the country." That misquote has earned status as a full-fledged business myth and urban legend. It can even be found in business textbooks and still seems to show up several times a month in media around the world. Here are the facts: Wilson appeared before the Senate Armed Services Committee in January 1953 as President Eisenhower’s nominee for defense secretary. A senator asked him if he could make a decision even if it were adverse to the interests of his stock and to GM. His actual answer: "I cannot conceive of one because for years I thought that what was good for our country was good for General Motors, and vice versa." He followed that sentence up with: "Our company is too big. It goes with the welfare of the country."
GoFast!, GM’s program to reduce barriers to speed, cut costs and eliminate bureaucracy, is having big results. In the first quarter alone, there were 230 GoFast! workshops at GM offices and plants around the globe, which resulted in nearly 600 approved recommendations. Some recent examples:
GoFast! is part of CEO Rick
Wagoner’s effort to create a corporate culture that’s
"fast, focused and fearless" – a place where employees
challenge the way things have always been done to create a company
that’s both big and fast. What others are saying about General Motors " Some interesting stuff: GM is outselling Ford in trucks. Since 1994 Ford sold more trucks than GM. The end of the first quarter isn't the end of the year, and Ford won't surrender--it's close. What's happened is that GM's big pickups, the Chevy Silverado and GMC Sierra, are outselling Ford's F-150. Ford didn't keep pace with GM on improving the big pickup. Ditto in large sport utilities, where the Ford Expedition and Lincoln Navigator are losing ground to the Chevy Tahoe and Suburban and GMC versions of these models. The game's not over. Both sides are now launching important SUVs."--Jerry Flint, Forbes.com, April 16 "Not all of the large carmakers are equal … and we think General Motors looks a little better than its rivals. GM is more attractive thanks in part to its 30 percent economicinterest in Hughes, the operator of the satellite television franchise DirecTV. In addition, GM's efforts to improve its sport utility vehicles also seem to be paying off, as the Chevrolet Trailblazer, GMC Envoy and Oldsmobile Bravada are poised to steal market share from Ford's Explorer … GM may be worth some consideration, despite the clouds in the auto sector." --Travis Pascavis, Morningstar.com, April 16Speaking of GM, did you know…
GM vehicles rate high in fuel efficiency GM vehicles scored high in the Canadian Office of Energy Efficiency’s most recent ratings of energy efficiency of new cars and trucks. GM had the most energy-efficient full-size car (Chevrolet Impala), minivans (Chevrolet Venture, Olds Silhouette and Pontiac Montana) and SUV (Chevrolet Tracker convertible 4X4). GM tied with alliance partner Suzuki for the most top-rated vehicles in the annual ratings. "It’s not just about saving money," the agency said in an advertisement published in Canadian media. "It means reducing greenhouse gases that contribute to climate change." While other automakers may talk about getting more energy efficient, GM’s leading the pack.
Speedster, Trailblazer, Rondy earn critics’ kudos It’s enough to make us blush: Here’s a sampling of some of the kind words GM has received on its latest products: "(The Opel Speedster) maneuvers a series of switchbacks at impossible speeds. Each corner gives you the confidence to step down a little harder for the next turn. The steering is precise and predictable, requiring little more input than the wheel of a go-kart. The big brakes are reliable and scrub off speed in a hurry." --Paul Eisenstein, "The Trailblazer’s engine – an all-new 4.2-liter, inline six-cylinder – is both smooth (an endearing trait of straight sixes) and potent: 270 horsepower, 275 pound-feet of torque. This is a superb new powerplant, far better than GM’s old 4.3-liter V6, significantly stronger than the Explorer’s standard 4-liter V6, and favorable comparable to the Explorer’s optional 4.6-liter V8. Hitched to almost two and a half tons of Trailblazer, this excellent new cooker goes from 0 to 60 mph in 7.9 seconds – much quicker than the standard Explorer – and can tow a 4,200-pound trailer to 60 in just over 18 seconds. Very impressive." --Lawrence Ulrich, Detroit Free Press March 15 "Wait! Don’t stop reading just because this is yet another SUV. Take a look at this one, you might like it. The 2002 Buick Rendezvous has a roomy interior, a third-row seat and a really cool independent rear suspension. It comes in a number of different configurations, it looks nice, and it costs less than the Lexus RX300… From the front it has its own look, with that big, toothy Buick grille and nicely integrated lower cladding. …To succeed in this insanely overcrowded segment, an SUV has to offer everything. The Rendezvous does."
Opel/Vauxhall outpace European market in March Opel and Vauxhall combined for the No. 1 position in the Western and Central Europe car market in March, increasing its car market share to 10.81 percent despite an overall weakening of the vehicle market. The Zafira continued to hit the mark with customers across Europe, posting its best month ever with more than 26,000 sold. For the first quarter, nearly 67,000 Zafiras were sold, an increase of nearly 3 percent over the first quarter of 2000 for the innovative compact van. Opel gained share in Germany and across Western and Central Europe in March and the first quarter, compared with the year-ago periods.
Auto writers & editors on the move We’re starting to wonder if it isn’t time to redefine the term "veteran auto writer." With so many veterans leaving the business, leaving town or going off on book-writing ventures, we almost need a face chart to track who’s who. Here’s the latest movement among the media movers and shakers… Doron Levin, business columnist at the Detroit Free Press for more than six years, plans to leave April 20 to become "worldwide automotive columnist" for Bloomberg News. He says he’ll be based in Detroit but will do a lot of travel. It's a new position for Bloomberg, which has several columnists covering other industries and has been very aggressive in hiring talent from other media outlets. Meanwhile, the Freep’s Janet Fix, who covered auto safety out of the newspaper’s Washington bureau, departed April 2 to take a reporting job at the Chronicle of Philanthropy. The attraction was a four-day-a-week assignment that will give her more time with her children. Janet can be reached at janet.fix@chronicle.com. Bill Koenig, most recently of The Indianapolis Star, has joined Bloomberg News’ Detroit staff as an auto writer. Bill will be covering one of the automakers once the staff gets around to divvying them up. Bill had been on the auto beat at the Star since 1985 and has covered every Detroit auto show since 1993. He previously worked at two small newspapers in Kentucky and at the Birmingham (Ala.) Post-Herald in the early ‘80s. Bill can be reached at wkoenig@bloomberg.net. Bill Vlasic, truly a veteran auto writer, left The Detroit News after the Detroit auto show to work on the paperback edition of "Taken for a Ride," his successful book on the DaimlerChrysler merger/takeover. The paperback version will include an updated epilogue that Bill says will be longer than any of the chapters -- it's truly "an unending story." The book's scheduled to come out in June. Bill says he's also looking at another book project, but hasn't ruled out returning to daily journalism at some point. You can contact Bill at bv854@aol.com. Bob Simison, another true veteran of the auto writer corps, left The Wall Street Journal at the end of January after nearly 27 years to join the News as an assistant managing editor. Bob’s in charge of the News’ political reporting groups in Washington, Lansing and the Detroit/Wayne County government offices, as well as the national wires desk. He can be reached at rsimison@detnews.com. No replacement will be made at the Journal, where Bob covered global automotive issues. Sue Carney joined the News last month from Automotive News, where she most recently covered DaimlerChrysler. She's on the DaimlerChrysler and supplier beat at the News. Her email address is scarney@detnews.com. Also at the News, former Washington bureau chief Jim Higgins has replaced Jon Pepper as the daily’s business columnist. Pepper joined a high-tech company in Ann Arbor last fall (the GM Backgrounder incorrectly reported in the last issue that news of Pepper’s departure broke in the rival Free Press; in fact, the News also carried the story the same day.) There has been no shortage of changes at Automotive News, either: Veteran reporter and editor Dave Guilford was recently named the GM reporter. Guilford had been managing editor of Automotive News International and Automotive Marketer. He has been with Crain Communications since 1985, when he was involved in the startup of Crain's Detroit Business. On the GM beat, he replaces Joe Miller, who left in November for the The Detroit News. Julie Cantwell, who had been covering GM in the interim, returns full-time to the marketing beat. Dave can be reached dguilford@crain.com. Richard Truett recently joined the staff of AN as engineering editor, replacing Aaron Robinson, who went to Car and Driver last year. Truett comes from the Orlando Sentinel. And Diana Kurylko has transferred to AN in Detroit to cover DaimlerChrysler after 10 years in Europe reporting for the trade weekly and its sibling publication Automotive News Europe. Impressive fact: Diana speaks fluent Russian, Ukranian and German and is conversant in Italian and French. Richard’s at rtruett@crain.com, while Diana can be reached at dkurylko@crain.com. January was a busy month at the Detroit bureau of Reuters. Justin Hyde fled The Associated Press for its international rival, where he is covering DaimlerChrysler. Hyde had been the auto writer at AP since late 1999 and replaced Ben Klayman, who transferred to Reuters’ Chicago bureau. (On a more personal note, Ben recently became engaged to his Chicago-based girlfriend -- and you were wondering why he transferred?! They’ve tentatively set the wedding for Aug. 25.) Finally, new bureau manager Tom Brown arrived from Reuters’ bureau in Columbia, South America, in January. Tom replaced Todd Nissen, who moved over to that consumer-oriented, No. 2 car manufacturing and recycling company in Dearborn in November. Justin’s at justin.hyde@reuters.com, while Tom’s address is thomas.brown@reuters.com. At the AP, Ed Garsten has been hired as auto writer, replacing Justin Hyde. Jim Suhr had been serving as auto writer since Justin went to Reuters in January, and plans to transfer to the St. Louis bureau. Al Haas has retired from the Philadelphia Inquirer, but he will continue to contribute auto articles twice weekly to the newspaper, on a freelance basis. He now works out of his home and can be contacted at alhaas1@netscape.net. Karl Greenberg in New York has taken over auto coverage for BrandWeek since its Detroit correspondent, Jeff Green, went to BusinessWeek late last year. He can be reached at kgreenberg@adweek.com. Katie Kerwin graduates from the Michigan Journalism Fellows program April 25 at the UofM. She plans to return to BusinessWeek in June. Congratulations, Katie! Bill Holstein recently left U.S. News & World Report after more than four years for Business 2.0, a magazine that is focusing on how major corporations are using new technologies. He remains based in New York, though the magazine's headquarters is in San Francisco. Some of you will recall Holstein from his days in Detroit at BusinessWeek. Bill can be reached at bholstein@business2.com. Rick Popely has joined the Chicago Tribune as an auto writer to help ease the load on veteran Jim Mateja. Popely formerly freelanced for that newspaper and others, and was with Consumer Guide magazine until 1997. He's covering trends, issues and features while Jim continues to focus on product and his column. The Tribune recently went from two "Auto/Transportation" sections a week to three. Rick is at rpopely@tribune.com. Bob Campbell has left The Flint Journal, where he was labor reporter (and sometimes worked on auto stories). He's working for Hass Associates in their GM safety/environmental news bureau. No replacement yet at the Journal. Alisa Priddle joined Ward's Automotive Reports late last year as editor, filling the vacancy left when Said Deep went to Ford's communications staff. Alisa comes from The Windsor Star. She's also doing the monthly "WrapUp" column in Ward's AutoWorld magazine. Alisa can be reached at alisa_priddle@intertec.com. Now, did we miss anyone out there?!`The Exhaust Tones’: Auto writer rock There’s a new rock band in Detroit whose members all have day jobs writing and talking about cars. They call themselves, appropriately enough, The Exhaust Tones. The band’s first gig was at the Hyundai party during the Detroit auto show (hey, you’ve got to start somewhere). Then Delphi Automotive Systems hired the band to play at their post-SAE party. The band’s leader is senior editor Tom Murphy of Ward’s AutoWorld, who sings, plays guitar and keeps the crew in order (something like herding cats, we suspect). Other members include freelancer John McCormick, guitar; John Cortez of MS&L Public Relations, vocals, drums and guitar; Chevy spokesman Jeff Roegner, guitar; freelancer Paul Lienert, bass; and AutoWeek road test editor Natalie Neff, vocals.
Tony Cervone returns to GM Communications Tony Cervone was welcomed back to GM Communications in early March as executive director of executive communications. Tony had left last fall when then-President Jim Holden offered him a vice presidency running Chrysler Group communications at DaimlerChrysler. When Holden was ousted in December, Tony submitted his resignation. At least that’s his story, and he’s stickin’ to it.
of GM’s top officers. He’s also responsible for financial and international communications, and oversees the corporate speechwriting staff. He reports to Steve Harris, vice president of GM Communications. His email address is Tony.Cervone@GM.com. As we reported in the last issue of GM Backgrounder, GM Communications underwent a reorganization effective Jan. 1 with several people named to new director positions. Most of those changes were on the product and technology side. Following up on those appointments, several other positions recently have been filled to round out the organizational chart: *Jay Cooney, also from DaimlerChrysler, was named director of legal communications. He took over the job formerly held by Kelly Cusinato, who is on maternity leave and plans to return in late May. Jay reports to Edd Snyder and can be reached at Jay.Cooney@GM.com. *Mike Morrissey, who came from the National Automobile Dealers Association, was named manager of media relations in our Washington office. Mike, who will report to Bill Noack, is the brother of Pat Morrissey in our Detroit office. He can be reached at Michael.Morrissey@GM.com. *Brian Akre was named director of executive communications and news relations, reporting to Cervone and Snyder. His email address is Brian.Akre@GM.com. *Ryndee Carney was named manager of e-GM communications, replacing Mike Gardner, who was transferred to Saturn communications. Ryndee reports to Pat Morrissey. She’s at Ryndee.Carney@GM.com. *In the vehicle divisions, Mary Henige was named director of communications at Pontiac-GMC, Jeff Kuhlman was named director of communications at Cadillac, and Tom Wilkinson was named director of communications at Chevrolet. All report to Julie Hamp. Their email addresses are Mary.Henige, Jeffrey.Kuhlman and Thomas.Wilkinson, all @GM.com. *Joe Jacuzzi is director of product/VLE communications, supporting truck programs, while Kevin Rose has the same title in support of car programs. They report to Johannes Reifenrath. Their email addresses are Joe.Jacuzzi and Kevin.Rose@GM.com. *Chris Perry has been named manager of communications for Information Systems and Services effective April 17. He will replace John Ahearne, who has resigned. Chris can be reached at 313-667-4558 or Christopher.Perry@GM.com. We recently published a new list that covers the key contacts for the news media, with everyone listed by their subject matter expertise. It’s being updated and distributed by email more frequently than in the past, and it’s always available on GM Media Online (media.gm.com). You can also request a copy via email or fax by contacting Brian Akre at the number or email address in the fine print below. GM Backgrounder is published whenever the News Relations unit of GM Communications gets around to it (but mostly every quarter) for reporters, editors and various automotive junkies who laboriously cover and otherwise profess to care about the goings-on of General Motors Corp. Got suggestions or comments about GM Backgrounder, or are you changing jobs, planning to get fired or switching careers to something that offers more money and respect (like being a flak or a lawyer)? Then please contact Brian Akre at 313-665-3159 or Brian.Akre@GM.com. Material in the GM Backgrounder may be rewritten, reused or reprocessed in any form whatsoever, as long as it continues to cast GM (a Fortune 3 company) in the positive light it so richly deserves. Got suggestions or comments about GM Backgrounder, or changing jobs? Contact Brian Akre at 313-665-3159 or Brian.Akre@GM.com. |