GM says new CFO is a candidate for CEO post
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GM says new CFO is a candidate for CEO post
GM says new CFO is a candidate for CEO post
Liddell is candidate for GM CEO post; hundreds of dealers to get back their lost franchises
By Tom Krisher, AP Auto Writer , On Wednesday January 6, 2010, 4:18 pm
DETROIT (AP) -- General Motors Co.'s new chief financial officer will be a candidate for the CEO job, and GM expects to bring back hundreds of dealers who lost their franchises, the interim CEO said Wednesday.
Chairman and interim CEO Ed Whitacre also said he's not optimistic that GM will be able to sell its troubled Swedish Saab brand, and that efforts are under way to close it.
Whitacre said during a meeting with reporters in Detroit that he would consider Chris Liddell, the CFO hired from the same post at Microsoft Corp., in the search for a new CEO.
Liddell, 51, announced before GM hired him that he would leave Microsoft to pursue a higher-ranking position.
Liddell was hired late last month as CFO, the first permanent top manager hired from outside the traditionally insular GM since the company left bankruptcy protection in July. He replaced Ray Young, who transferred to GM's China operations.
At Microsoft, Liddell developed a reputation for holding down costs while building up cash. He instituted a plan to cut $3 billion from the technology company last year that included its first mass layoff, wage freezes and cuts in travel and other expenses.
GM is majority owned by the federal government and Liddell was granted an exemption from government imposed pay caps to take his post. He will be paid $750,000 this year, but will get up to another $5.45 million in stock starting in 2012 if GM successfully sells its shares to the public.
Whitacre also said he is not optimistic for a deal to sell its Swedish Saab brand. GM is phasing out Saab and expects to start closing plants this week.
Liddell is candidate for GM CEO post; hundreds of dealers to get back their lost franchises
By Tom Krisher, AP Auto Writer , On Wednesday January 6, 2010, 4:18 pm
DETROIT (AP) -- General Motors Co.'s new chief financial officer will be a candidate for the CEO job, and GM expects to bring back hundreds of dealers who lost their franchises, the interim CEO said Wednesday.
Chairman and interim CEO Ed Whitacre also said he's not optimistic that GM will be able to sell its troubled Swedish Saab brand, and that efforts are under way to close it.
Whitacre said during a meeting with reporters in Detroit that he would consider Chris Liddell, the CFO hired from the same post at Microsoft Corp., in the search for a new CEO.
Liddell, 51, announced before GM hired him that he would leave Microsoft to pursue a higher-ranking position.
Liddell was hired late last month as CFO, the first permanent top manager hired from outside the traditionally insular GM since the company left bankruptcy protection in July. He replaced Ray Young, who transferred to GM's China operations.
At Microsoft, Liddell developed a reputation for holding down costs while building up cash. He instituted a plan to cut $3 billion from the technology company last year that included its first mass layoff, wage freezes and cuts in travel and other expenses.
GM is majority owned by the federal government and Liddell was granted an exemption from government imposed pay caps to take his post. He will be paid $750,000 this year, but will get up to another $5.45 million in stock starting in 2012 if GM successfully sells its shares to the public.
Whitacre also said he is not optimistic for a deal to sell its Swedish Saab brand. GM is phasing out Saab and expects to start closing plants this week.
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No surprise about Saab being toast. It's been obvious for months that if GM couldn't sell it off it would simply shut it down permanently. It's still pretty laughable that anyone else thought otherwise despite the laundry list of reasons.
What IS a surprise is that GM is considering it's new CFO as CEO.
I guess in a way, that might be expected as well. GM was never going to find another Mulally or another person who already had experience turning around a major corperation (or company). Therefore, it stands to reason that the position would go to someone with something to prove.
According to the article, Liddell has experience in holding down costs and boosting cash, which is what GM needs right now in order to pay back the government and go public again. But like Fritz Henderson, who turned out to be around just long enough to serve GM's purpose of getting through bankruptcy and the immediate fallout, I can't help but wonder if Liddell gets GM back to the point where they pay back the Feds and become public, if he won't then be ejected in favor of someone who serves the next need GM might have at that moment.
I know GM WILL get back on track because Whitacre has an undisputable track record of turning around and expanding companies. But he also has a reputation of being pretty ruthless.
I think a lot of new stars will come out of GM's near certain revival. GM will be a far better company than it ever was if Whitacre and GM's new board have their way.
But there's also likely to be a sizable body count as well.
Being where GM was, and what it's taking to turn it around, that shouldn't be at all unexpected.
What IS a surprise is that GM is considering it's new CFO as CEO.
I guess in a way, that might be expected as well. GM was never going to find another Mulally or another person who already had experience turning around a major corperation (or company). Therefore, it stands to reason that the position would go to someone with something to prove.
According to the article, Liddell has experience in holding down costs and boosting cash, which is what GM needs right now in order to pay back the government and go public again. But like Fritz Henderson, who turned out to be around just long enough to serve GM's purpose of getting through bankruptcy and the immediate fallout, I can't help but wonder if Liddell gets GM back to the point where they pay back the Feds and become public, if he won't then be ejected in favor of someone who serves the next need GM might have at that moment.
I know GM WILL get back on track because Whitacre has an undisputable track record of turning around and expanding companies. But he also has a reputation of being pretty ruthless.
I think a lot of new stars will come out of GM's near certain revival. GM will be a far better company than it ever was if Whitacre and GM's new board have their way.
But there's also likely to be a sizable body count as well.
Being where GM was, and what it's taking to turn it around, that shouldn't be at all unexpected.
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Christopher P. Liddell is a New Zealand businessman. Since May 2005, he is a Senior Vice President and the current Chief Financial Officer of Microsoft. Liddell plans to leave the company at the end of December 2009 per an announcement on November 24, 2009; he is expected to seek a CEO position at another software company.
On December 21, 2009 it was announced he would join General Motors as Chief Financial Officer. He is expected to begin work early in 2010. [1][2]
Prior to joining Microsoft, he served as CFO at International Paper Co. from March 2003 to April 2005; prior to his appointment to this position, he also served as Vice-President of Finance and Controller. Prior to his employment at International Paper, he served as CEO of Carter Holt Harvey (1999-2002), with a previous stead as CFO (1995-1998).
Aside from his business life, he has also served as director of the New Zealand Rugby Union, governor of the New Zealand Sports Foundation and chairman of Project Crimson; he is also a member of the Securities and Exchange Commission's Advisory Committee on Improvements to Financial Reporting.
On December 21, 2009 it was announced he would join General Motors as Chief Financial Officer. He is expected to begin work early in 2010. [1][2]
Prior to joining Microsoft, he served as CFO at International Paper Co. from March 2003 to April 2005; prior to his appointment to this position, he also served as Vice-President of Finance and Controller. Prior to his employment at International Paper, he served as CEO of Carter Holt Harvey (1999-2002), with a previous stead as CFO (1995-1998).
Aside from his business life, he has also served as director of the New Zealand Rugby Union, governor of the New Zealand Sports Foundation and chairman of Project Crimson; he is also a member of the Securities and Exchange Commission's Advisory Committee on Improvements to Financial Reporting.
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I would be nervous about Lidell as CEO for at least a year or so. His experience with Microsoft is a completely different business model than GM. They might spend years developing a product (like GM), but the production costs almost nothing. Let him understand how much money it takes to build cars before putting him in charge.
-Geoff
-Geoff
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GM needs someone who knows how to cut billions in costs by other means than just gutting your engineering teams.
I do not approve of him for CEO.
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But is he a "car guy"? If not, the idea of him being CEO has failure written all over it. Sure he can control costs... but does he know the car business? There have to be several people who are good cost controllers that are also "car guys"... or am I over thinking this too much?
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I would be nervous about Lidell as CEO for at least a year or so. His experience with Microsoft is a completely different business model than GM. They might spend years developing a product (like GM), but the production costs almost nothing. Let him understand how much money it takes to build cars before putting him in charge.
-Geoff
-Geoff
No, I assure you they have quite substantial development costs. That's what drives the computer world more than any other consumer product, including cars.
Difference is that the product they sell doesn't cost 20-70 grand. But as a percentage of the final selling price going to development, I'd wager that most of the cast that isn't profit goes to development costs.
It is a totally different model, but I wouldn't say Microsoft has no production cost either. Out here Lidell's name isn't spoken with a positive tone - he got costs down by gutting Microsoft's teams and effectively shelving many [money making] future projects while also expecting even MORE overtime from the remaining employees. Microsoft has a known practice of burning through employees like candy -- but GM adopting tactics like that is a GM doomed to fail.
GM needs someone who knows how to cut billions in costs by other means than just gutting your engineering teams.
I do not approve of him for CEO.
GM needs someone who knows how to cut billions in costs by other means than just gutting your engineering teams.
I do not approve of him for CEO.
Not because I think he'd make a great CEO (I think the board is planning on using him for their current needs). But because it's a clear window where GM's priorities are at the moment.
Beyond streamlining the company and speeding it's reactions and decisionmaking 100 fold, GM is clearly focused on getting the governments money back.
It's what GM needs at the moment, but it's not what GM is going to need, say, in a year or 2.
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Development cost is almost nothing???!
No, I assure you they have quite substantial development costs. That's what drives the computer world more than any other consumer product, including cars.
Difference is that the product they sell doesn't cost 20-70 grand. But as a percentage of the final selling price going to development, I'd wager that most of the cast that isn't profit goes to development costs.
No, I assure you they have quite substantial development costs. That's what drives the computer world more than any other consumer product, including cars.
Difference is that the product they sell doesn't cost 20-70 grand. But as a percentage of the final selling price going to development, I'd wager that most of the cast that isn't profit goes to development costs.
Microsoft ---> Production = burning CD's virtually zero captal required.
GM ---> Massive production system. Massive capital required.
-Geoff
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I think that is a lot better than the pansies that have been running the show for years. IMO you need someone to crack the whip every once in awhile.
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