Perfect example of what is wrong with GM

GM can't seem to get it right. One of the few bright spots in the entire fiasco is the pending sale of Saturn to Roger Penske. Penske represents quality, success, and the entrepreneurial spirit that built America. Unlike most corporate leaders, Penske is the type of man you'll see meeting with engineers to discuss design on Monday, kicking butt in the plant on Tuesday, and visiting customers on Wednsday. Such drive and attention to detail is what brought him success and has caused many to be hopeful about Saturn's survival after Penske and GM announced a pending sale.

Unfortunately for Saturn, GM still can't stop itself from trying to screw up a good thing. The Wall Street Journal reported this week:
"Though its fortunes soured further in December, when GM said it would sell or close Saturn, they got a boost June 5 when the big chain of auto dealerships owned by motor-racing mogul Roger Penske -- struck a deal to buy the brand. "We were on death row," said Saturn Marketing Director Kim McGill, in an interview. Now, the brand is in "remission," thanks to Mr. Penske, but "is not yet totally cured," she said.
To spark interest and remind consumers that Saturn is still alive, its dealers have kicked off a new marketing campaign built around the slogan, "Wonder where the car business is headed? It's here." The slogan will be used on banners across Saturn storefronts and in a spate of email blasts, Facebook blogs and direct communications with buyers."

However, GM has other ideas as it tells its dealers not to spread the good news. Seems as though the corporate chieftains can't stand the thought of someone else getting any credit:
"But at least for now, GM has asked Saturn not to trumpet the Penske connection -- even though some dealers think it is the biggest thing the brand has going for it -- lest it overshadow the Saturn brand name. The deal may not be sealed until late in the third quarter, Ms. McGill said."

As a former GM employee, I can say I'm not too surprised, as GM is a company where egos mean more than performance or numbers. There is very little accountability at GM, as the worst executives tend to move from title to title, as they all protect each other. (We actually had divisional sales managers who had never been in sales much less visited a customer in their entire careers). Once you rise above a certain management level at GM, individuals with actual ability and common sense are seen as a threat by management and don't last too long. GM is not a corporation but a bureaucracy that just happens to sell cars.

What these REMF's care about is not results but GM's image as they try to avoid the "Penske Connection" even though it means more sales: "Enthusiasm about the "Penske deal helped Saturn in June, Ms. McGill said, drawing more traffic into Saturn showrooms and leading to a 35% year-to-year sales increase."

One dealer started using Penske in his advertising only to earn a stern rebuke from the Empire:
"He said the ads increased traffic to his dealership. "People want to buy from someone they like," Mr. Davies said in an interview. "A lot of customers won't buy a car from GM, but they will buy a car from Roger Penske."
Not long after dealer initiatives like Mr. Davies's billboards began to crop up, Saturn dealers got a letter from GM executives asking them to not overplay the Penske deal, for fear of taking the spotlight off the brand itself."

This is a perfect example of what is wrong with GM and corporate America. Sales, profits, or market share do not matter, as what is important to the Michael Jackson of the car business is the image and reality they created for themselves, a reality where GM reigns supreme and is adored by everyone.

Unfortunately for GM, what built America was not bloated bureaucracies like GM or Citi but risk-takers like Penske, Gates, Watson, Ford, and even Jobs. Business owners like Mr. Penske care only about results, while corporate bureaucrats worry about their image and avoiding any responsibility. If Saturn survives, it will be because it is led by a Penske and not a bunch of REMF's who are clueless about the real world.

One further note: Mr. Penske owns VM Motori, a company that manufactures diesel engines. American car manufacturers have had problems building a small diesel engine for regular cars that would allow them to compete with diesel-powered cars made by Volkswagen and Mercedes. If Penske can use VM Motori to build a diesel engine for Saturn, he might be onto something here and create a real winner.