Charlie Rose

Corto  09/05/2008 11:01 AM Report

I think Saturn is the logical choice because it is draining a lot of resources from the other brands, without yielding any return. Even with a freshly revamped line up, Saturns are just not selling in great numbers. Too bad for the dealers who are amongst the best out there.

Corto  09/04/2008 10:55 AM Report

I'm afraid Mr Rose didn't ask the real question, concerning GM's biggest problem which is having too many dealers and too many brands. With a market share in the low 20's, there just isn't enough resources to provide for eight different brands in NA. Other than Hummer, which brands will go. Surely these guys have done the math.

Toes  09/03/2008 04:21 PM Report

The fuel cell technology is ready today and fuel cells are three times as efficient as conventional engines, domestically produced natural gas is available at half the cost per energy unit as gasoline, and reformers for the hydrogen fueling stations are available off the shelf, so GM make a deal with someone that has the fuel cell technology and let's get the US economy back on track to dominate in the 21st century.

Boxer  08/26/2008 10:58 AM Report

Dear Flunky

It is management's job to look out for the best interests of shareholders in the short and long term. Good management makes a case for their strategy, good management makes and sells the hard decisions that need to be made to survive and compete. Your entire comment is yet another apology for failure by blaming expectations of shareholders. Honda and Toyota have shareholders too, yet they did not fail to see the future and to take appropriate action to enhance their competitive position. Is it not ridiculous for Wagoner to state that GM did not err in the 80's, for Lutz to say it was the government's EPA standards that are to blame? Not unusual when companies and managers like this have a hand in glove relationship with big oil, and other vested interests, except their own customers. Their precarious financial and market positions are testament to their incompetence.Just pathetic.

Donna Moore  08/25/2008 08:31 PM Report

Great interview! I am a GM employee who has worked with General Motors Corporation for almost 26 years! Almost every other country has loyalty to its industries. The American owned vehicle manufacturing industry is critical to the gross national product of the United States of America. It would be great if we were aware of how our choices/purchases have an impact on the United States economy. Since General Motors has excellent vehicles manufactured world-wide that have great design, get great mileage with over 30 miles per gallon, great value, and is a great contributor to our communities through employment and other endeavors, we have an excellent opportunity to make a difference in our economy. We can improve our economic condition by supporting our American economy through the purchase of American manufactured vehicles and other products! General Motors' vehicles are very competitive! Prove me wrong by going to a GM dealership and test driving one of our vehicles. I dare you! Show your loyalty to America by purchasing your next vehicle from an American owned manufacturer such as General Motors Corporation.

chance  08/25/2008 07:59 PM Report

Rick, It's not 1975 anymore, GM doesn't have 40% of the market, or time to fix this problem. Your stock is $10 a share soon to be $5 a share if you don't stop following the pack and do something bold. You and Bob Lutz (especially BOB) seem to think your packing what it takes to fix this. There's only one thing that will put you back in the lead quickly, (technology) not the same thing everyone else is doing! That's not technology, that's following. If your the CEO and Bob head of future projects you both should be looking at a lot of stuff right now. You have a chance here to look at something that's very interesting. Bob said the volt is GM's moon shot. The technology we've developed will launch Volt, and dramatically improve the entire GM line of vehicles. If you don't believe me, come and see. I'll prove it!

I'm not sure you have the guts to do what it takes?

tattoorose  08/25/2008 02:34 AM Report

The only alternative for GM to turn itself around is to get Rick Wagoner out!!!!! He don't know nothing about the automobile business. The only thing he cares about is the money that goes into his pocket. He don't care about the employees out here on the line that are breaking themselves down everyday to produce the vehicles for GM. I actually thought GM cared about their employees until I started to work at one of the facilities. I found out that to be wrong. Until GM especially Rick Wagoner is gone and they bring the jobs back to the United States where they belong I will never buy another GM product again. GM has always been an AMERICAN company but now you might as well buy Toyota or Honda because they are made in the USA not like GM. I still work at GM but the plant I work for is closing their doors. I don't feel this way because of that reason. I understand completely why they have to close the doors on this plant but to sit there and deny money from the state and be tax free to bring another product to the plant and decline it? What is wrong with that? Does that sound like they care about the workers who make their vehicles I think not!!! The plant that I work at has supported GM for years and kept GM alive. Now all of a sudden they turn there backs on the one plant that made them successful. To me that is wrong. What alot of people don't know is that the UAW is responsible for this plant I work for to close. It is the only GM plant that is not UAW. When the UAW went on strike the agreement was that they would get all the products at their plants and leave this one out. I don't agree with that. The UAW is suppose to care about people and the welfare of people that is what a Union is for. The UAW don't care at all about people only that they have money coming into their pockets too. They are just like Rick Wagoner and everyone else that is in charge of the company. I thought Unions were suppose to fight the management not become one of them. So in conclusion the ones that sit there and say that this is the right move for GM you are completely wrong. Keep buying your foreign vehicles and I will stay with my American cars where I am proud to live and work.

sock puppet  08/24/2008 03:25 PM Report

Repeated from the Lutz interview (cause it sticks in my craw). Rick Wagoner and Jamie Dimon and their ilk are all peas in a pod. Glib, arrogant, smug, self satisfied, entitled by birth and the common man and taxpayer is morally and duty bound to be honored to pay homage by mortgaging themselves and their progeny for generations to their golden-parachuted eternal welfare.

_____________________________________________________________________________________________________ ____________________________________________________________________

To the big 3 non-statesman request for a interest rate subsidy, the response should be framed in a per cent of the taxes they've paid in say the last several years. In other words: nothing. _____________________________________________________________________________________________________ _______________________________________________________________ What brass cajones? What chutzpah? What an indictment of our system that they would even consider asking. But given the subprime example bailouts - why not eh? _____________________________________________________________________________________________________ ________________________________________________________________ They've doubtless paid taxes in the (offshore) countries where they've been profitable (China), why not ask them? Leave our battered treasury alone. Treating the future taxpayers like an open pocketbook will ultimately bring on banana republic-type inflation (400%/day?) cause ultimately it becomes mere paper. Turn on the printing presses.

_____________________________________________________________________________________________________ __________________________________________________________________

Could we consider making PRESUMPTIVENESS a punishable crime? Like maybe a day in the stocks in the public square?

bad background  08/24/2008 09:41 AM Report

Charlie,

Watch your background. the one for GM CEO shows photos that are just out of focus and looks like a mostly naked person riding on someone bent over mooning the camera and the one just over the CEO's right shoulder looks like someone licking another body.

Hat to say it but please at a later date explain what this really is. Very distracting.

Alwasy love your show but this is basic background for your producers.

PBS Guy  08/24/2008 09:40 AM Report

Hey Flunky

"So, in order to sell Widget #2 at a price that your customers are willing to pay, you have to take a loss on each one you sell."

So how does Toyota do it? How come Toyota makes money in this market, how come Toyota made money when gas was dirt cheap, cheap, somewhat expensive, and very expensive.

Toyota, Honda and others find ways to make gas-guzzlers, family sedans and compacts and make money.

Face it, this has everything to do with management, GM has none, GM has a guy who makes 15 million dollars a year, a guy who knows NOTHING about auto business.

sock puppet  08/24/2008 08:17 AM Report

These shameless bastards want to strain a burgeoned system with even more bailout subsidies. Should be a direct subsidy that any fair-trade protagonist should object to. Toyota for instance.

GM, Ford, and Chrysler want even more - $50 billion -- with 25 up front and 25 in subsequent years.

This is the problem with bailouts. You do it for someone, you have to do it for everyone.

Lou deBottari  08/24/2008 01:10 AM Report

Finally, I believe GM is on the right track. The GM approach to produce an all electric car will be able it to adapt to all the new technologies now on the horizon. Their approach allows electric cars to begin to be on the road, at first using a standard internal gasoline engine to charge the battery while driving. Unlike the Prius that has to carry two drive systems. The GM engine runs at a constant rpm thus making it very efficient and easily adapted to new fuels as they come on line. When gasoline is phased out, the internal combustion engine will run on methanol, ethanol or natural gas. As hydrogen because the fuel of choice, the internal engine will run on hydrogen and finally when the fuel cell becomes available the internal combustion engine will be retired and the charging will be accomplished using a fuel cell. This cell can run on natural gas with a reformatter that will strip the hydrogen atom off the natural gas. When onboard hydrogen is available the reformatter will be removed. I predict the VOLT and its cousins will be around for at least 3 decades and will be the catalysis to make this country oil independent. Good work GM

Flunky  08/22/2008 08:10 PM Report

I just love people that comment on things that they do not understand, and can only use an armchair Monday Morning Quarterback analysis on things, along with a Lemmings chain of thought. Hey, LB, have you ever sat on a board of a major public company? Let's pretend that you have and that you have to address the shareholders of your company. Let's pretend that your company is selling Widget #1, which has a low cost and a viable profit margin, which puts money in the stockholders' pockets. It takes any company in your industry at least 5 years to develop a new Widget from the ground up. Not just using technology that Widget #1, where suppliers already have the tooling and environment in place for Widget #1. There is a buzz around that Widget #2 would need to be made. Now the cost of Widget #2 is very different from Widget #1, and your customers would need to pay a very large premium over the price of Widget #1, which they will not do. So, in order to sell Widget #2 at a price that your customers are willing to pay, you have to take a loss on each one you sell. Now, how do you think your stockholders are going to react, when at the time, Widget #1 is selling very well, making a profit? If you're a shareholder, and you're making money right now with the shares you own in this company, do you have the foresight to take a profit loss for the next few years in order to make Widget #2?

New technology that hasn't been previously developed in cars cost more. Toyota takes a hit on every Prius sold. GM will take a hit on every Volt sold. It's hard for shareholders to look at the big picture when their investment money is at stake. That is the future of the price of oil and it's effect on the US economy that no one foresaw.

You can blame American investors for their lack of wanting to stay with their investments in the very long term.

Dr. Hans J. Kugler, PhD  08/22/2008 03:16 AM Report

Wow!

Have they really stopped trying to push the highly polluting hydrogen car down our throats?

What would all those gas stations - - definitely not frequented by plug-in drivers - - do? So, why not El Toro Poo Poo the public into believing that the hydrogen car is good for us - - - besides being the oil mogul's dream?

Consider exploring www.ElToroEXPOSED.com

Bob Miller  08/21/2008 11:05 PM Report

GM, taking advantage of all of their global assets , produces cars that are equally exciting and inspiring as any Toyota or Honda - you just have to go and actually look. The entire Saturn lineup is very competitive - and the latest Caddies and even Chevrolets will raise your eye brows. Yes, the Japanese have great products - but don't rule out GM now - their products are very good now - and it's becoming well documented in the automotive press as well.

LB  08/21/2008 01:18 PM Report

It is no surprise that these companies are not doing well with both GM persons interviewed saying none of what was coming was forseeable. These are not leaders, they are stuck in their own worlds with a lot of yes men around them. That a car is an extension of the person, especially a man, is an old concept. To blame their failures on workers' pensions is really obnoxious. I agree with the comment about the American car dealerships. I tried to buy an American car a few years ago, and was handed the, "This is the real world lady" when I tried to ask questions and discuss pricing. I bought a Toyota.

Boxer  08/21/2008 11:41 AM Report

GM will continue to fail as long as idiots like Waggoner and Lutz continue to blame the "consumer" for not being sophisticated enough to want energy efficient cars like their European counterparts. I am just shocked and amazed that these guys fail to accept any responsibility for their failure to properly guide this company since the first major oil crisis hit in the early seventies. The only reasons GM is failing is poor construction quality, poor efficiency, poor design, and poor management, period.

JT  08/21/2008 11:34 AM Report

My wife and I are both engineers and were Buick, Chevy, and Pontiac buyers for years until we bought a vehicle in the 80's and the dealer acted as if we didn't matter at all. The service department was especially difficult to work with. After that, we never looked at a GM vehicle again, no matter what. Since then, the dealers we have dealt with at Ford, Audi, Subaru, Lexus and Toyota have been excellent. If I can offer my input to Mr. Wagoner, it would be to work with the dealers to make sure they support the Volt introduction 100% and do NOT do things that aggrivate the customers. My own negativity did not come from the engineering of the vehicle, it came from the customer service experience.

Chris peters  08/21/2008 03:39 AM Report

I was impressed with the humble candor of Mr Wagoner and want to say that he is doing an admirable job with his company. I was hoping to here something about the GMAC subsidiary and its status. I havent watched part two of the interview.

fnc  08/20/2008 06:43 PM Report

Some of you seem to be mistaken about the range of the Volt. It is not limited to forty miles of driving range. It goes forty miles on a full charge of the battery, then a gasoline engine turns on to generate power which can propel the car (and presumable recharge the battery) as long as there is gas in the tank. The promise of the car is that you can commute ~20 miles in it, return home and plug it in to repeat your commute the next day without needing gas at any time. But you could still drive it across the country on gasoline alone if you needed to. The seemingly minimal electric range is the number GM came up with that balanced battery weight, battery cost, and maximum utility to the most people. There are still many questions about the ultimate feasibility of the car, but if it meets the specs GM has put forth driving range won't be a concern.

I'm hopeful cars like this can serve as a stepping stone to more intense electrification of our transportation infrastructure. And maybe, just ~maybe~, U.S. auto manufacturers won't get caught with their pants around their ankles greedily feeding at the truck/suv profit trough in the future.

F. Mackerl  08/20/2008 04:54 PM Report

Given that Toyota priced the Prius at a loss for several years, I have little faith that the Volt at $30,000 is going to be attractive to many buyers, at least until it proves itself.

Toyota took a few years to make a Prius that was more powerful and got even better mileage. I had no idea until I saw this show that GM was putting this much into the Volt. Since production is over two years in the future, I couldn't believe all the commercials GM is showing for it already. I hope it works, and doesn't look like a Pacer.

Gardiner Westbound  08/20/2008 04:10 PM Report

The Detroit-3s problems have more to do with lousy cars than retirement and health insurance costs.

The Asian invasion of the North American car market passed another milestone with Consumer Reports 2006 ranking of Japanese models as its top choice in all 10 vehicle categories. Not a single Toyota, Honda or Nissan model was included in the magazine’s list of used-car “lemons”. Of 34 used-car models reporting an unusually high number of problems, six were Chevrolets, five GMCs and four Volkswagens. Of the 44 “most satisfying” vehicles, 31 were Japanese.

xeno  08/20/2008 03:53 PM Report

I was completely unsurprised at what a idiots they have in charge of this company.

Wealthy overpaid politically connected idiots are destroying America. They are the cancerous rot that has and will continue to bring American manufacturing to ruin.

Sadly, companies like GM and the other American corporations hire very talented engineers and over many years management destroys them. How many engineers start at these corporations full of hope, then move to anger, and then go home and weep over the waste and corruption, and then acceptance of it all, and give up. The talent and answers are always there, but are stifled by overpaid management idiots.

And nothing motivates a embattled workforce like plant closures and the always impending phone call to inform you that your services are no longer required.

The new redesigned Volt rushed to production only goes 40 miles on a single charge! Assuming you want to return home, then its 20 miles, and assuming that you will be doing some driving at your destination, then its 10 miles. Is there a warning when you have reached the point of no return? Lets assume that the price of this vehicle will be 30K, and by its very function you will need another car to go any distance. There is no savings in owning two cars, with registration, excise tax, insurance, parts, devaluation, etc.

Why would anyone own own the Volt when they could own just one HIGH QUALITY Prius, with unlimited range?

John Coats, P.E.  08/20/2008 02:13 AM Report

After watching the last couple of days discussing GM, it's management (Wagoner and Lutz), I'm not surprised GM is going under. Are they just clueless (or just old). GM hasn't approached compentant design for 20 years. After seeing your program, I understand why. I'm ashamed to see America not compete, but after seeing their management, I'm not surprised. The game hasn't changed, they just don't understand it. Sell GM.

GQtaste  08/20/2008 02:10 AM Report

These guys have screwed up the best company in the world! The management for the last twenty years have crushed good men and women across this country w/ their horrible management acumen or lack there of. My old man lost his job in OKC, OK b/c they had to close the plant for making dumbass decision's that were sleeping at the wheel.

Livewire  08/20/2008 01:21 AM Report

Charlie, GM had the EV1 from 1993-2003. The third generation EV1 got 100 miles per. charge with Ni Metal Hydrate Ovonic Batteries. GM owned a controlling interest in the battery tech. and now the New "Volt" will only go 40 miles per. charge? In 2003 GM had the EV1's crushed and shreaded as soon as California's 0 emission program was cancelled, with a little help from Gm CEO Rick Wagoner and Andy Card (then CEO of American Auto Association). I think we're being "Bushed" by GM about the "Volt". It will drag out a few more years as they watch the gas drop another $1 and then back on with even bigger tanks to drive. Remember in 2003 when Bush gave his speech about Hydrogen cars. Turns out, they don't work very well in the cold and using pre-heaters for the hydrogen is a bit explosive. It was just a con job and shortly afterward, Andy Card joined the Bush club of deep thinkers and story tellers. Anyone want to buy a Hummer that runs on Bull Poop?

more power to you, GM!  08/19/2008 10:34 PM Report

all this talk about the future of GM has left me asking what about the HOMER? i don't think we should abandon this option yet people! think about the key demographic... young, energetic, north americans. people with a sense of humour would love driving this car! there's got to be folks out there who agree with me, c'mon people!

http://img84.imageshack.us/img84/6853/blueprintsio5.jpg

http://girtby.net/images/homer-car.gif

p.s. lol!

more power to you, GM!  08/19/2008 10:34 PM Report

all this talk about the future of GM has left me asking what about the HOMER? i don't think we should abandon this option yet people! think about the key demographic... young, energetic, north americans. people with a sense of humour would love driving this car! there's got to be folks out there who agree with me, c'mon people!

http://img84.imageshack.us/img84/6853/blueprintsio5.jpg

http://girtby.net/images/homer-car.gif

p.s. lol!

Eric  08/19/2008 06:26 PM Report

Wagoner's a smart guy, and I believe he's positioning GM for a bright, successful future. He can't control the economy, fuel prices, CAFE regulations, or UAW strikes, which are the main sources of the auto industry's issues. The product is King, and Wagoner along with the rest of GM knows this.

Herb Neu  08/19/2008 05:39 PM Report

Wow. With Wagoner (and his yes-men) at the helm, GM (and its stockholders) may be doomed. This interview is very revealing. Do all the automobile companies think this way? It's time to initiate a balance between "profit" and "customer." We need vehicles that will fit the times.

sock puppet  08/19/2008 02:52 PM Report

E Caskey - Great point, repeated here (without permission): "With a high $30K's price point, the Volt won't just be beyond the reach of people who can't aford them; they'll also be difficult to justify by customers who can afford $30K, but simply don't choose to spend it on a car. The idea of the Volt is great. But, GM needs to remember Henry Ford's business plan and make the car that everyone can afford. If they don't, you can bet that Hyundai will."

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GM should put you on their payroll as a consultant if not full time. The wisdom of creating "customers" instead of consumers is so cogent GM should price it initially as a loss-leader. If it's their savour (as advertised / hoped) the unit cost should drop it into profitability. Say 1-2 years? They're losing on suv's, why not something with potential. I vote Caskey as Wagoners replacement at the next board meeting. Assuming there's enough stockholders left to form a quorum.

Michael Poole  08/19/2008 10:51 AM Report

In the interview Wagoner casually alluded to the biggest problem facing GM: the five year product development cycle. In an era that allows energy futures to double in six months and shoppers to browse the internet every waking moment of their lives such an interval is untenable. I wonder what Steve Jobs or Jeff Bazos would think of a five year cycle.

E Caskey  08/19/2008 09:11 AM Report

Mr. Wagoner's constant referral throughout the interview, to auto buyers as "consumers" and his arrogance regarding vehicle price points (including the Volt), demonstrate why GM is experiencing financial problems - GM management is focused on profit and doesn't understand auto buyers. GM doesn't want "customers", they only want "consumers". Many of us don't just "consume" cars - we research their quality & value, make an educated purchase and keep them longer than 2 or 3 years. Mr. Wagoner's comment about profit margins on truck/SUV/luxury vehicles vs. small cars and why people purchace them -"some people buy small cars because that's all they can afford" was way off the mark. Some people drive small cars because they enjoy them, enjoy the fuel economy or feel that they're better for the environment. And some people drive big vehicles that they can't really afford. With a high $30K's price point, the Volt won't just be beyond the reach of people who can't aford them; they'll also be difficult to justify by customers who can afford $30K, but simply don't choose to spend it on a car. The idea of the Volt is great. But, GM needs to remember Henry Ford's business plan and make the car that everyone can afford. If they don't, you can bet that Hyundai will.

TABS  08/19/2008 04:58 AM Report

How many more rolls of the dice does GM have? The worry for GM is CASH! Do they have the cash to see them through? Are they in a position that everything has to go their way or they will fall? Is everything riding on the new Volt technology? Maybe in 5 years GM will be reduced to making peddle cars?....... Anyway Mr Wagoner holds his water well......for a guy who looks like he is on crank! If Mr Wagoner level of anxiety is an indication of the state of GM's financial health, GM ain't gona be around.

em2  08/19/2008 03:38 AM Report

Tech is here but the auto makers aren't fast enough. They saw it comming and only focused on current profits. I don't feel sorry for the CEO and the board. Most of us can not just go out and buy a new $30-40000 car.

Any fully electric powered car does not go over 40-45 mph. What do you do when you have to go 12 miles between cities and there is only a 60mph road. It will take to long for roads to be funded for slower cars. The need is now and no one is comming through. Poeple are leaving jobs because it costs to much to get to work, loosing everything wlse becasue they can't keep their jobs. The majority of people can not wait 2 years.

Why don't you come up with a new drop in conversion for the rest of us. It would be better to not just put all these standard fuel cars in the dump but to redo them. I would be more willing to have you gut my car then start over just like a house.

No we are not willing to pay more because we are loosing more-we do not get CEO pay checks!!!!

sock puppet  08/19/2008 12:59 AM Report

Glad to hear the enthusiasm for the Volt. But if it's a catch-22, where its very success would contribute to its failure, if the long run commitment is as whimsical as gasoline prices. If the world oil drops accordingly fuel costs will drop. Then would they revert to high margin suv's and crossovers? Again?

_____________________________________________________________________________________________________ ________________________________________________________________

Somewhere, sometime principle might be useful. Emission standards - even if pump-prices plummet - might be a driving force over (gasp, choke) maximum-short-term-profitability. Long-term vision for once needs to trump short-term quarter-to-quarter profits. Toyota gas efficiency should show them something in this regard. They had them for lunch. I'm ready to get a 'charge' out of the Volt. It's overdue.

RE Mant  08/19/2008 12:06 AM Report

What GM needs most, whatever it does do, is consistency. Ditto the other American car makers. I wouldn't buy a car I doubt will be here tomorrow. Carmakers overseas have it, but not here, and I don't think you can blame that on the American consumer. Part of it is no doubt the short-term mentality of the stock mkt. And part of it is the ups and downs of the economy and the price of gas in the past 40 years. We have been through this same "crisis" several times now and I have no doubt that if gas drops to $3 tomorrow it will be back the the SUVs. And, as he alluded to, car cos here don't want to produce cheap cars for poor ppl. BTW, if they want to sell Hummer, it can't be an asset.

sock puppet  08/16/2008 11:23 PM Report

Greed > Vision?