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New GM: Logo Could Go Green, Execs Cut
By Tom Krisher, AP Auto Writer
Manufacturing.Net - July 09, 2009

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DETROIT (AP) -- General Motors could literally turn green as it readies itself for major management and cultural changes that will coincide with its escape from bankruptcy protection.

People briefed on its plans say the company is looking into changing the background color of its corporate logo from blue to green in an effort to show consumers that it is leaner and greener, more focused on fuel efficiency and better able to make quick decisions.

Ed Welburn, GM's vice president of design, is leading a group that is studying name and logo changes, but no recommendation has been made, according to one of the people. Changing the background of the familiar square blue-and-white GM logo has been discussed, said the people, who requested anonymity because no decision has been reached.

What has been decided, though, is the need for management and cultural changes. New CEO Fritz Henderson is preparing to cut another 4,000 white-collar jobs, including 450 executive-level employees such as plant managers or engineering group heads.

Henderson, under pressure from the new GM's largest shareholder, the U.S. government, wants a more nimble company, one that can make decisions faster and is less bureaucratic than the GM of the past.

In the old GM, several committees often reviewed decisions, holding up new vehicles and making it slow to respond to market changes. Designs were often changed from bold to bland, with GM stamping out nondescript cars such as the old Chevrolet Malibu. With taxpayer dollars and its very existence on the line, GM can no longer afford to take too long.

So Henderson will thin executive ranks by 35 percent, from about 1,300 to 850 by the end of the year. Total U.S. salaried employment will drop by 6,150, or 21 percent, from 29,650 at the start of the year to 23,500 by the end.

The changes could be announced as soon as Friday after the courts clear the sale of GM's good assets to a new company largely owned by the U.S. and Canadian governments and the United Auto Workers union. They will flatten the automaker's organizational chart, eliminating work groups and shrinking the organization to match a smaller footprint, according to the people briefed on the plan.

The flatter organization will make it easier for Henderson to hold people accountable for their work, while focusing more on product development and customer service, one of the people said.

The new structure would be similar to one imposed on Chrysler Group LLC by Fiat CEO Sergio Marchionne, who now controls the company. Marchionne shed layers of management.

General Motors Corp. also could announce a subcompact car to be built at a Michigan factory, widely believed to be the four-seat Chevrolet Spark minicar now being sold in China.

GM for years had neglected its small cars, unable to make money on them because of high labor costs. Instead, it focused more on high-profit trucks and sport utility vehicles. Its current entries, such as the Korean-made Chevrolet Aveo subcompact and the U.S.-made Chevrolet Cobalt compact, have not sold as well as top-selling entries from Toyota and Honda.

The new GM, however, is betting that car buyers will shift to small as gas prices swing wildly, and it's trying to upgrade that class of vehicle. The company says lower labor costs and higher sales prices should yield more profits.

GM is also trying to go leaner by selling off its European Adam Opel GmbH unit, as well as Sweden's Saab, and the Hummer and Saturn brands. Pontiac is to be discontinued by the end of the year, leaving GM with only four brands -- Chevrolet, Buick, Cadillac and GMC.

Steve Rattner, the head of the Obama administration's auto task force, told reporters earlier this week that GM must adjust to being smaller and less global.

"It would be natural as part of this overall downsizing of GM for there to be a change in the management structure to become a bit closer to the ground, a bit leaner and meaner," he said Monday.

The U.S. government is expected to provide about $50 billion in aid to the automaker as it exits bankruptcy and tries to become profitable even in a depressed world auto sales market. That won't be easy for a company that has lost more than $80 billion in the past four years.

The cuts will help GM adjust to being a smaller company, but will not make it successful without forceful leadership to change the culture of bureaucratic committees making decisions too slowly, said Harlan Platt, a professor at Northeastern University in Boston who teaches corporate turnarounds.

GM simply must transform itself into a company that makes cars and trucks that people would love to own, Platt said.

"That's great," he said of the cuts. "But if it doesn't end up with General Motors being transformed, then it's just another step on the way toward the ultimate demise of General Motors."

Associated Press Writer Ken Thomas in Washington, D.C., contributed to this report.


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Going green  7/9/2009 11:49:00 AM
Does this mean GM is not ripe? The old GM had its share of fertilizer. All in all, I don't believe changing the color of the logo goes far enough to make want to buy one of its cars. In fact, if the government is going to dictate the kind of cars GM makes (as opposed to a committee) I think I will pass and buy a Ford.
green   7/9/2009 12:13:00 PM
A green logo will just remind me that GM is a government bail out. Green means greedy, and tax the rich.
Phoney Baloney  7/9/2009 12:21:00 PM
What a transparently vapid gesture. If these morons spent more time designing the cars instead of the logo they wouldn't be in trouble. They still cling to the idea that there aren't enough small cars being made in America. They already are, south of the Mason-Dixon line.
GM downsize?  7/9/2009 12:22:00 PM
I thought Uncle Sam wanted to save jobs? Sell cars reflecting a wildly-swinging fuel market? why not stabilize the fuel market by opening up resources?
Gov tells GM "less bureaucracy"  7/9/2009 12:24:00 PM
Hard to believe that GM didn't already know they watered down designs with layers of management. The skills are there, Corvette, Cadillac style, relative fuel economy of large cars. But so many bland cars, cost cuttings, and a lack of automotive greatness have been well documented in the automotive press that GM must know. But that the message finally comes from the Government, wow. Talk about the pot calling the kettle black. Did the investors of the last 20 years not tell the board, did the board not think they had a problem, did accounting not evaluate overhead costs? This is the ultimate slap in the face, the people who finance the Pentagon (remember $600 toilet seats) are telling GM they have too many layers of management. That hurts.
I agree with Steve Rattner  7/9/2009 12:32:00 PM
"...smaller and less global. ...downsizing in the management structure to become a bit closer to the ground, a bit leaner and meaner. How astute. That is exactly the plan the government should be following.
GM Logo Change  7/9/2009 12:38:00 PM
What a "brilliant" use of money, time and talent(?) by a company in bankruptcy. What school of management did these brainiacs graduate from? It had to be a correspondence course and they had to have graduated in the bottom quarter. No one in their right mind would think that changing a logo will change the change all of the negative perceptions, and at what cost. This sounds like another dumb idea on top of many other dumb ideas.
Logo Color?  7/9/2009 12:40:00 PM
Really? That is their brilliant idea? "Hey let us insult the general public by changing our logo color and passing it off like we have changed! They will eat that up!" A simple logo color change is not going to make people forget the history of GM. It will take time and effort to do that. Why not just save the money on molds, color standards (Because you know it will take at least three meetings to determine the correct color green), supplier set up fees and leave the logo alone and focus on the product. The Logo is the least of your worries. And can someone explain why a company that is trying to drop it's median age of buyers would stop production of the performance division (Pontiac) and instead keep the one division that is the poster child for older customers (Buick). I guess the chinese market is more important. How many government dollars are going to be needed when their customers stop driving and move to Florida where they need only Golf Carts for their transportation? Maybe I took this too seriously?
Could the UAW be right after all?  7/9/2009 12:48:00 PM
Is it looking more and more like the UAW is not the problem but instead it is the bloated "executive" ranks at GM that have driven the company to bankrupcy? What real value did these 450 people have to the company if they can just be eliminated with the stroke of a pen?
Government tells GM  7/9/2009 12:53:00 PM
Way to go that is exactly what the government needs to tell GM they need to become 'leaner and meaner' and less global. These geniuses need to take some of their own advise
CHANGE the Color of The Logo?  7/9/2009 1:31:00 PM
WHY? Do these shallow thinking people realize what such a change would CO$T? Many millions, I'm, sure, Think of the signage at every dealer, packaging of spare parts, stationary, various emblems on products, stickers, and ad nausium. Either forget it, or when you run low on branded supplies, or signs need to bwe replaced, order iot out with the new color. Green, by the way is the color of infection in most warm blooded organisims. Cutting indirect employees by a paltry 30%? Another folly! They need to keep the levels of management on the plant level...foremen, department manager and plant manager. Above that there's nothing below a limited number of vice presidents. Please understand some basics of how manufacturing finance is supposed to work: First there is Value Added Operating Income, or VAOI. This is the income from what is done to increase the value of whatever they're making in the plant. People that generate this are generally what are called direct employees, those that physically work on the adding value to the product, typically the production workers. This is what pays all of the corporations's bills. The more indirect employees you have, the less you can do with the income from sales. Likewise vendored parts and imported crap has no value added, therefore no VAOI, in spite of the fact it is made part of the product being sold. EVERYBODY above the plant floor is an indirect employee, except skilled trades who are absolutely essential to keeping things working, could be considered as indirect, as they don't actually work on the end product, but are essential. Thus, when we start offshore outsourcing finished goods or sub assemblies, we add nothing to the VAOI, and render many indirect people without a purpose, as well as idling the direct people. This is pretty long winded, although I hope not enough to qualify me as a politician!
GM Logo  7/9/2009 3:05:00 PM
I can't believe they're going to spend millions on changing the color of the logo. Well, yes I can. I bet our new flag will have green in it too (sarcasm). They don't need the salaried positions because management will now be dictated to by the government. And talk about bland cars?! They have nothing but twins when it comes to the Chevy/GMC models. Get rid of one of each twin. Why they're getting rid of Poniac is beyond me. This is the government telling a company how to run its business. God help us all.
Government Motors  7/9/2009 3:48:00 PM
What person in their right mind would buy a car from a company owned by people that steal from them 365 days a year.
Logo  7/11/2009 7:02:00 PM
The # 1 & 2 & 3 things every car buyer wants is Quality & Reliability @ an affordable price. The reason cars are not selling is because car companies spend millions on stupid things like logo's & cut costs by cheapening up the product, then then raise the prices & blame in on the poor working stiff having insurance. When are they going to wake up & see that it's not thier money to spend on stupid stuff that no one wants. It's the idiots coming up with these stupid ideas that need to be let go. Thier salary would probably feed 100's of poor people who don't have jobs because they get paid a fortune to think up this stuff.
RE: Could the UAW have been right...  7/13/2009 10:04:00 AM
Hindsight is ALWAYS 20/20, but how long does it take to realize a simple truth? "When GM succeeds, the UAW will succeed." Wake up America - the wolf is ALREADY AT THE DOOR!


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