this is another article i saw in the newspaper. if it's true that they just want lutz and cowger to be more focused, this could end up being a good thing.
link to article: free registration required.
http://www.mercurynews.com/mld/mercu...s/11314089.htm
CEO shakes up General Motors
WAGONER PUTS `NOOSE AROUND HIS OWN NECK'
By Rick Popely and Jim Mateja
Chicago Tribune
CHICAGO - Chief Executive Rick Wagoner shook up the management of General Motors' ailing North American operations on Monday, announcing he will be responsible for its day-to-day duties.
Wagoner, 52, who ran the North American operations from 1994 to 1998, takes over from North American Chairman Bob Lutz and President Gary Cowger.
The pair will retain their titles but focus on global responsibilities: Lutz on product development, Cowger on manufacturing, GM said.
More changes are inevitable, said Peter Morici, a University of Maryland business professor. ``The North American operations need a fundamental shift in strategy that will free up more cash for new product development and lower product development and production costs.''
Morgan Stanley analyst Stephen Girsky said in a research note that it ``may be the precursor to more aggressive actions'' and questioned Wagoner's ability to handle the additional responsibility.
``What Rick has done with these moves is put a noose around his own neck,'' said David Cole, chairman of the Center for Automotive Research, an Ann Arbor, Mich., think tank. ``If it works, he spreads the credit around. If it doesn't work, he accepts the blame.''
But independent analyst Maryann Keller, a longtime GM critic, said Wagoner was forced to step in because Lutz and Cowger haven't performed.
GM's Kowaleski denied that Lutz and Cowger were pushed aside. ``We're trying to put our resources into place where they are needed most to move faster and more efficiently globally.
``Why would (Lutz) be put in charge of all global development, which includes North America, if that was the case? He hasn't relinquished North America, he's working on ways to develop product globally that would help North America,'' Kowaleski said.
Keller said the company's North American problems are rooted in products. ``It's simple. Give the American public a car it really wants to buy. It doesn't matter how efficiently you build your cars if nobody wants to buy them.''