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GM’s Akerson: Employees are ‘agents of change’
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Thu, 6 Dec 2012|
Automatically Generated Transcript (may not be 100% accurate)
Not a part one of our discussion with GM CEO Dan Akerson he sat down with the Automotive News last week. For progress report on General Motors are Leslie Allen has more. You can't just dictate from the thirty Ninth Ward one thing's pretty clear Dan Akerson wants cultural change at General Motors. I hear these stories of what it was like five in ten years ago with the personalities and egos which analysts tower. There is a there is a harmony in any case. Synchronous. Aspect to the way that this company is working that really. Makes me proud. Akerson says he's kind of events that people are starting to feel empowered -- General Motors. They are agents of change. That they aren't held back by. Well that's way we've always done it thinking there and and and and is it I don't you can bring me and I could be gone tomorrow. The besieged and planet. And it goes in and nothing. Motivates people like. Of bankruptcy. And the anxiety and fear and quite frankly the embarrassment and the disappointment of it and I would say. This generation of GM employees is highly motivated. To improve. Not repeat the mistakes of the past. And -- from our fresh thinkers that. -- on his agenda. An aggressive schedule of vehicle launches into money thirteen. Including on versions of GM's pickups and suvs. We've had the quote unquote oldest portfolio in the marketplace that will radically change over the next twelve. 24 months. But the 64 year old actress and says he likes challenges. A big one. Bringing GM's once recommended back office operations into alignment. We need to fix some fundamentals here and we are in that will make us a much better competitor. In ways that. The car guys never could've imagined. How deep will it go this will maybe surprise you we re able if necessary to tell you the profitability by car by -- -- by then number. That's a powerful thing to say. One of his priorities besides continuing to streamline product development. -- to bring information technology and house again IT. A small. What could be written on hi -- General Motors angles back to 1980. Whenever we bought EDS. Strategic error. To see to buy it basically push all your people. Into this. EDS. This navy veteran compares farming out IT. -- the military hiring another country to do the work of the Marines. Information technology he says should be at the core of an automaker just like engineering or design. In our next installment. There's no other car like this ever. Akerson talks technology. Products and his goals for Cadillac. For Auburn is now I'm Leslie Allen. About a year after Dan Akerson took the reins at GM in late twenties had he famously declared. I am not a car guy. Despite that there are some products even a non car guy can get excited about. Here's Leslie L with part two of our exclusive interview with -- Near the top of that person's list. The plug in Chevy -- Last week consumer reports -- 92%. Of -- owning subscribers who responded to a survey. Said they will buy the car again. An actress then -- he can't resist the little bragging. We've taken so much grief for this. A five bucks compares that at one end -- staying together it's great 92 say it's great the other say it's good. There's no other car like this ever. I mean. They've taken so much heat on this report that ever bought. There is a problem. Problem is not making a lot of money. And me in any. In this second generation we think we're gonna take out some number on the order five to 101000 dollars depending on volume. See the full -- -- -- proselytizing this is unique car that has won this event. That's the cost at its current five. Now last for the Chevy Malibu it's gotten mixed reviews and that hasn't escaped the attention of the CEO. He says he personally liked the car. Nonetheless. We are going to. -- mid cycle on enhancement. Not dramatic by this time next year. And with efforts to create a global presence for Seve well underway. Akerson wants the same for GM's luxury mark Cadillac. Leading the charts. Caddies global chief Bob Ferguson his appointment raised eyebrows because Ferguson's background is in public policy and Telecom. They have global experience. Something the boss considers vital in an executive. Where regional brand. And to be a global brand in -- global. Oversight -- -- oversight and Bob has that assignment. Akerson says one way Cadillac can compete is by targeting younger buyers this segment of the luxury brand we need to be successful. Is in the small like -- Segment and that's the -- yes still he's beating up a whole lineup. Right now we are now have product and 80%. These luxury market we weren't there before. And that includes the PTS which is due for -- fresh next year. The mid luxury XTS. A new escalade SUV doings -- -- thirteen. And the plug NE LR. It's probably the best portfolio we've had been. The generation. To go back that far. Now we also ask -- about his views on technology. He says look for radical changes in the next few years -- GM in the forefront. Taylor crying and he says -- apples -- voice recognition system into cars is just the earth that. If you abroad and someone from apple here five years ago this whole industry would be radically different in this area of infotainment. And that's what we have quietly done. We've got people in from Lucent's bell labs. Some of the cares it's okay. Green sheet of paper -- clean sheet of paper. Go. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Or whether Ford doesn't or. Won't like does it will be it'll come faster than people think -- Later this week Akerson on car sales and the dangers of this booklet. For -- and is now I'm Lesley hale. Now the final installment in our exclusive interview with -- GM CEO Dan Akerson. As our Leslie Allen reports there's a big wildcard in GM's future. No this time it's not Europe or China. It's Washington DC. I think it is serious. And that's -- view on the phone call fiscal -- A series of automatic spending cuts and tax hikes that could soon take effect. That is unless congress and the president agree on a way to cut the deficit. -- that -- get the country's fiscal house in order. That'll provide certainty that I think people. Possibly sustain this. Recovery. He says the big risk if a drop in discretionary spending translation. Less money for people to buy cars. While some experts predict sales will hit 151000000. And 2013. Act person sees -- more conservative fourteen to fourteen point five million. That all presupposes that we don't fall off the cliff. I think I do think that could disrupt among third quarter -- not careful what you ask for more on actress and be sure to catch our talk from the top feature and Monday's print edition -- Automotive News. For -- and is now. I'm Leslie Allen.
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Dealer Don Forman's slick service strategyWelcome to our first installment of the dealer speaks for 2013. I'm Tom Moore back. You know when visiting stores we like most customers walk through the front door and see the new cars sparkling under the lights. while there's plenty of cool stuff happening you know show rooms. One thing I've noticed lately is that dealers face is really single light up when we start talking about what lies behind those walls. According to a National Automobile Dealers Association consultant. Service parts and the body shop generate 43%. Of an average annual gross profits. And the service department at united Nissan in Las Vegas. Well it's quite the bustling places these days due in large part to technicians mastering the entire process. Surrounding the oil change. It's such a small service but to a customer we believe it's without question most important because. Gust comes back for the first change after the car and they wait for an hour they're not coming back ever again. So last year dealer principal form and established a service skull. Provide an oil change car wash in wipe down in 25 minutes relax. And what we saw was that our routine maintenance changes started to grow. Customer repair orders alone shot up 23%. In 2012. This year. Former editor of quality control twist he diverted vehicles from the quick loop area to the 44 mean In what we're doing now were incorporating. A master tech or senior technician to actually do the walk around do the work with the tech for two reasons number one we're picking up tremendous test opportunities that are being messed. By eight by technician but the second thing we're doing to for training the technician technician. And I think I think in in the long run which you don't injure your bringing up these opportunities for you people. Sales strategies are now found in the service drive. Customers are presented with what calls timely appropriate products and it's getting competitive. For every 30000 mile service inspections sold for example. The advisor not only earns a cash bonus but an equal amount of money goes into a pool. Advisors than compete in games in which their teams can win that pool. They're throwing darts at a board you know in the service manager's office because they some type of you know us sail out there or you know there's noose there's new spent programs that are put up every day and and the and the guys are actually you know the did you just human numbers did you see in my numbers. Through February. Customer pay sales in other words out of warranty work that could have been lost independent repair shops chains. Are up 27%. From a year earlier. Our goals this year increased customer pay by about 60% and and these guys feel like they can and and when a customer's car is in the shop. Peter Sheen has transportation options. While he was chairman of these advisory board Foreman helped pilot the auto rental car initiative. The stores rental car fleet has grown from flooding vehicles to 120. And while the intent of the program was to keep the driver in the Nissan. What we found after you know after doing this for. Quite a few months was that these customers that we were taking out of their 2010 Altima or eleven that may have been having. Service worker or some civil war to job done on it. We put them in 2013 Altima as a rental car. And they come back and we and the sound of 2013 Altima. And that is the sound of a sale at united son. We heard the bell ring four times during our few hours on the floor. It creates a lot of excitement and a lot of emotion that's the car buying process to me. After the bell is run forbids employees who work to meet a 2013. Shortening the selling process. The customer agrees to the transaction immediately that at that point the sales person. Had turned the transaction to finance manager so there's no lag time between the two once the paperwork result wrapped up Foreman. Rolls out the red carpet. And then they go right outside the door. Where there are delivery area is lined with red carpet and velvet ropes and that's where their cars standing tall and beautiful and and then to the record there goes through the process of of showing them all their features their benefits form and encourages all stores to have delivery coordinators. Because if you really wanna take troop troop care of your customer you need to have masters a customer service. Which are salespeople are but are record even better later the store's general manager phones each new or used car customer. To review the process. And it's amazing what's uncovered in some cases that we can. Quickly facts and then it's also amazing how many how customers give kudos for what a great job would. Foreman is always looking to help employees become more efficient. He installed dumb that's shuttle's deals between after nine in the business office no more running upstairs. Any installed air conditioning instead of less cool swamp coolers. Keep service more productive on those hot biggest days. as for the future. Foreman who also owns two Nissan dealerships in California. Expects the number of stores under his watch to at least triple in size. I think that I see. These manufactures. You know. putting themselves in a position with certain dealers where they become almost exclusively kind of made the commitment to in our company to be in Nissan. Group and we would like to us yourself in the next five years with. Then these stores. hopes to sell about 3000 new cars at united this year a 20% increase from wanting to well. That is are tied for now thanks so much for watching this edition of the dealer speaks will see you soon.
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