http://www.thecarconnection.com/Indu...193.A8664.html
Q&A: GM’s Mark LaNeve
GM is “in the fight of our lives.”
by Paul A. Eisenstein (2005-05-24)



He grew up in a tough steel town, and spent his college years as a first-string football player. But for Mark LaNeve, the fight is just beginning. But for a brief stint running Volvo Cars North America, LaNeve has spent his entire career at General Motors, including a three-year stint as head of the Cadillac division.

Caddy's comeback is one of the few real success stories for GM lately, and the desperately hoped-for sign that other GM divisions might have the chance to turn things around, as well. In a not entirely unexpected announcement, the giant automaker says it will effectively consolidate three of its most "troubled" brands, Buick, Pontiac and GMC. That's just part of a grand restructuring designed to slash costs and rebuild market share. What else is in store? TheCarConnection's publisher, Paul A. Eisenstein, had this conversation with GM's blunt and hard-charging new director of sales, service and marketing operations inNorth America.



TCC: GM suffered a two-point decline in market share during the first four months of 2005, yet some analysts warn even bigger losses are likely. Some suggest we could see the U.S. market start to look like Europe's, where even the biggest brands hold barely 15 percent. Do you agree?

LaNeve: I don't like hearing that, because as the market leader, we have the most to lose. But the fact is, in some ways, our (foreign-owned) competitors have advantages over us when competing here. When they enter new segments, it's very difficult to keep them from gaining share. On the other hand, whenever we enter segments, we gain share. Cadillac gained 70,000 units in sales when it entered two sport-utility segments. This will sort itself out over time. There's no natural inertia that says we have to slip to 20 percent over time. Executing new products well, we'll gain share.



TCC: So is there a product in the portfolio that could turn things around for GM as a whole, much the way the Escalade or CTS helped revive Cadillac?

LaNeve: People keep looking for a silver bullet that will reverse GM's fortunes, but I can't think of one. This has to be done over time with good products that will rebuild brand. Over time, strong brands win, weak brands lose.



TCC: Okay, so a few months ago, Vice Chairman Bob Lutz said several brands were "damaged," and though he backed down from that statement, you admitted Buick, Pontiac and GMC are "troubled." But you seem to have an alternative solution to simply shutting one or more of them down.

LaNeve: We still think eight brands is better than seven, (but)…we're going to run it (Pontiac/Buick/GMC) like one division. To be honest, this isn't entirely new news. We've been doing this (quietly), and now we're beginning to talk about it. Half the dealers already handle all three brands, and 90 percent have two. The goal is 100 percent.



TCC: Will you cut back on the number of products the consolidated division sells compared to when they operated independently?

LaNeve: Yes, but three really strong Buicks would be a better business proposition than the (larger) lineup we have today. And eventually, if we're successful, the BPG channel might have more products than today. If light trucks remain strong, for example, we might add even more models under the GMC nameplate.



TCC: GM just scored a big coup in the oft-quoted J.D. Power Initial Quality Survey. You nearly matched Toyota/Lexus/Scion in the number of segments you led, and swept with the highest-quality plants in North America.

LaNeve: That sends a really important message to the market.



TCC: Yet isn't part of the challenge you face getting people to hear - and believe - that message?

LaNeve: It's a big problem. Consider Buick, in terms of perception, it has a 50-point gap compared to its actual quality. The only brands we have (with positive perceptions) are Cadillac and Chevy. We need to move all of them over. You just have to keep delivering in the J.D. Power reports. You have to keep working at it. Brands like Buick have great quality. They just don't get credit for it.



TCC: You've long been the biggest advertiser in the U.S. , but a huge portion of your billion-dollar-plus ad budget goes to network TV. We hear that's going to shift. True?

LaNeve: I'm not sure, over the years, that we were totally effective. Here's an example. Pontiac was a small player on TV, but they could be the biggest player on the Internet if we choose to be there.



TCC: One often hears GM described as an "arrogant" company. Fair?

LaNeve: A lot of the stuff people say, we deserve, but characterizing us as arrogant, that we don't deserve. We'd have to be the dumbest sons-of-guns on earth considering where we are compared to 25 years ago to be arrogant. We are in the biggest fight of our lives.

 

interesting
i'm really starting to like laneve
let's see how it all works out

 

Sounds good to me. I hope the plan works out.