32 long years did this Harvard MBA take to understand GM; one fine day it took the US Senate to fire him! No more gambles, Rick...
George Bush Jr. (the former US Prez, who else?!) and Rick Wagoner share many things in common. Both are men. Both married. Both Americans. Both Harvard MBAs. Both controlled the strongest entity in their fields (one ruled over the US Senate & the other, over the largest US automaker). Both elected in 2000. Both saw their best days in the first four years of their administration. Both reigned for eight years. Finally, 2009 saw both becoming history… And yes, before we forget, both can hold the Democrat Obama responsible for their ousting! But beyond the drama, there exists one stark difference between the two, and in the manner in which they played their final goodbye tunes. While Bush was ‘booth’ed out respectfully by Democrat Obama & his administration (as he’d run out of time), that very same Obama army, booted out Rick!
And it all happened on March 29, 2009, when Rick Wagoner (now former CEO & Chairman, GM), met up with officials from the US Senate. The Senate (under the Republican Bush administration) had previously given him a reason to raise a toast on New Year eve, showering upon him a most benevolent $18.88 billion on December 31, 2008. But matters got no better, and GM ended up burning dollars in public, reporting $52.8 billion in net losses for FY2008!
His affair with GM shareholders haven't been too cordial (See chart to note how GM shares have lost value on NYSE). But hey Rick, we're not here to criticise you... we are proud of you, and surprised we are, as to how the world's turned a blind eye to what's left in the glass... Yes, the $90 billion in GM’s Mcap that you peacefully destroyed during your reign amounts to just 98% of GM's total Mcap when you began gnawing. Rick, now what are they cribbing about? You've still saved 2% for your successors!!! What’s more, the day your resignation was announced, GM’s Mcap rose by a cool $128.2 million; did someone thank you?
Then there are other issues that will keep you fresh in our memories. Your utmost detest for fuel-efficiency and your scrapping of the futuristic EV1 ‘electric car’ project wins you our fan cards! Really Rick, we admire your awareness, and the manner in which you forgot how the global auto market is more elastic than the US army. Afterall, you belong to the Harvard MBA Class of '77, right?
George Bush Jr. (the former US Prez, who else?!) and Rick Wagoner share many things in common. Both are men. Both married. Both Americans. Both Harvard MBAs. Both controlled the strongest entity in their fields (one ruled over the US Senate & the other, over the largest US automaker). Both elected in 2000. Both saw their best days in the first four years of their administration. Both reigned for eight years. Finally, 2009 saw both becoming history… And yes, before we forget, both can hold the Democrat Obama responsible for their ousting! But beyond the drama, there exists one stark difference between the two, and in the manner in which they played their final goodbye tunes. While Bush was ‘booth’ed out respectfully by Democrat Obama & his administration (as he’d run out of time), that very same Obama army, booted out Rick!
And it all happened on March 29, 2009, when Rick Wagoner (now former CEO & Chairman, GM), met up with officials from the US Senate. The Senate (under the Republican Bush administration) had previously given him a reason to raise a toast on New Year eve, showering upon him a most benevolent $18.88 billion on December 31, 2008. But matters got no better, and GM ended up burning dollars in public, reporting $52.8 billion in net losses for FY2008!
His affair with GM shareholders haven't been too cordial (See chart to note how GM shares have lost value on NYSE). But hey Rick, we're not here to criticise you... we are proud of you, and surprised we are, as to how the world's turned a blind eye to what's left in the glass... Yes, the $90 billion in GM’s Mcap that you peacefully destroyed during your reign amounts to just 98% of GM's total Mcap when you began gnawing. Rick, now what are they cribbing about? You've still saved 2% for your successors!!! What’s more, the day your resignation was announced, GM’s Mcap rose by a cool $128.2 million; did someone thank you?
Then there are other issues that will keep you fresh in our memories. Your utmost detest for fuel-efficiency and your scrapping of the futuristic EV1 ‘electric car’ project wins you our fan cards! Really Rick, we admire your awareness, and the manner in which you forgot how the global auto market is more elastic than the US army. Afterall, you belong to the Harvard MBA Class of '77, right?
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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