Based on their poor performances at the Congressional hearings this week — including the tone deaf moves of flying in on G4s and wearing bling to the hearings — there is a groundswell calling for the heads of the Big 3 automakers.
The logic: it’s all the CEOs fault. Replace them with smarter, more effective CEOs and everything will be ok.
Problem with the logic: Though Waggoner has been at GM forever and CEO for a long time, Mulally came to Ford a little over 2 years ago (from Boeing) and Nardelli came to Chrysler a little over a year ago (from Home Depot, after a career at GE).
In other words: TWO OF THE THREE ARE NEW !
Perhaps that’s why some of their answers weren’t as crisp and authoritative as one would expect.
My opinion: these are very complicated businesses with many constraints (burdensome union contracts, government regulations, legacy costs). It would be difficult for any mere mortal to jump in, grasp the business, and overcome the constraints.
Who’s on the shortlist of replacement CEOs? Pity the poor souls. Anybody who would take the job should be eliminated from consideration on the basis of poor judgment.
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