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Remarks by Dan Akerson, Chairman and CEO, General Motors Company, to the Automotive News World Congress

2011-01-11

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Remarks by Dan Akerson
Chairman and CEO, General Motors Company
To the Automotive News World Congress
Detroit, Michigan
January 11, 2011

Thanks, Keith.

This is my first major industry speech since joining GM.  And I’m very pleased to be making it here at the Automotive News World Congress.

And speaking of firsts, the Detroit Auto Show is my first major auto show since becoming CEO.  The last few days have been a lot of fun, and I’ve really enjoyed them.  They have re-affirmed what I’ve felt about the auto industry for a long time – it is exciting, dynamic, and absolutely essential to our manufacturing sector and national economy.

There must always be a vibrant American auto industry… one that is capable of going toe-to-toe with the best automakers around the world.

I’ve been in this business for a relatively short period of time.  You know it far better than I do.  But when I walk the show at Cobo, I am struck by just how tough the global competition is in this business.  The quality, the engineering, the innovation from every corner of the world – it is truly awesome.

I also believe there is absolutely no reason why American automakers shouldn’t be able to compete in this space… and even lead the way.

At the same time, we simply will not succeed if we continue to do business the same way we always have.  We need to find – as the theme of this Congress states – “The Next Normal.”

We cannot take two of America’s big three auto companies through the acid bath of bankruptcy… call for huge sacrifices from our suppliers, dealers, investors, employees and retirees… and then be content with a smaller version of the same old industry.

The old ways and the old business models are gone.  Today, we need an industry that puts customers first… that values speed and agility… and that continually adapts to a rapidly changing world.

Look what happened to the music industry when technology changed – when Napster and i-tunes and others rewrote the rules.

Look what happened to the photo industry when technology changed.  How many among you have a camera that requires film since cameras have gone digital?

My point is that technology continually advances… and it has the power to transform industries.  It is changing ours right now.  Will we let ourselves become casualties of that change?  Or will we lead it?

That’s why the Chevy Volt is so important.  It’s not another “me too” vehicle.  But it’s not the ultimate solution, either.  Volt is a glimpse into what is possible… for all of us.

I know this industry has been through a lot the last several years.  Very difficult times.  But we’re all here today thanks to a lot of hard work.  And we’re beginning to see what the future holds.  And that future is bright.  That’s what Wall Street told all of us on November 18, when investors beat a path to GM’s door.  If we keep pushing… we can change this industry.

So, how do we do it?

As I said, I’m still new to the auto business… but I know you win in any business with great products… great quality… and great customer service.  And I know that we’ll get there by working together to achieve our mutual goals.

The chain is only as strong as its weakest link.  Automakers are only as good as their cars.  Our cars are only as good as our parts.  Our reputation is only as good as our dealers.  And so on.

We need to set high expectations.  We need to demand a lot from ourselves and each other.

A key focus for GM – and one of my personal priorities – is to improve relations with our suppliers and dealers.

The hard truth is that GM didn’t always do a great job listening to you in years past.  Today, we’re working hard to build positive, lasting relationships with all of you.

I know the bankruptcy proceedings were tough on a lot of valued partners… including many of our suppliers and dealers.  I can’t wave a magic wand and erase that… but I can pledge that we will work with you… we will keep the lines of communication open… and we will treat you as the valued partners you are.

For our suppliers – we need to engage you earlier in our vehicle development process… so you can bring your expertise into our vehicles sooner and more completely.  And we need you to bring us your best ideas first… and to help us execute every global program quickly and flawlessly.

For our dealers – we need to provide you with the best-designed, best-engineered, best-quality products possible… as fast and as often as we can.  That’s why we’re raising our R&D and product spending this year… and why we’ll maintain it at higher levels in good times and bad.  And we need you to make the customers’ experience the best in the business… because that is where our mutual business is won or lost.

Of course, another relationship we’re working very hard to improve… is our relationship with the customer.

Our biggest challenge right now is to get more people to put GM on their consideration list… to give us a fighting chance of getting them behind the wheel of a Chevy, Buick, GMC or Cadillac.  In many ways, that comes down to rebuilding trust.  And we’ll do that by proving every day that GM is a new and different company than it was two years ago.

We need to demonstrate that we have learned from the past… and are determined never to repeat it.

At GM, we are humbled by our near-death experience… and deeply appreciate the support we received from so many people and organizations since then.

For the first time in a generation, the automotive playing field in America is level.  Now, the best car truly can win again… and we’re going to fight hard to be the company that builds those cars.

We look forward to earning the public’s trust and respect every single day… and we look forward to a much brighter future for all of us.

Thanks.  I look forward to your questions.