GM board orders faster new vehicle rollout
TRAVERSE CITY, Mich. -- At its first meeting, the board overseeing the new General Motors ordered management to bring some vehicles to market faster, a sign that the 13-member board will play a far larger role than the old one.
Board Chairman Edward Whitacre Jr., in a conference call with reporters Wednesday, would not identify which vehicles were pulled ahead, but said the board of the government-controlled company emphasized fuel efficiency as well as other areas.
"I'll tell you there were some suggestions made," said Whitacre, former CEO of telecommunications giant AT&T. "There were some changes made. This board's going to be very active. We're charged with doing well for the stockholders."
GM, which emerged from bankruptcy protection July 10, can become profitable sooner than most people think, Whitacre said, although he wouldn't give a time frame. The company is not yet profitable despite shedding debts and burdensome contracts in bankruptcy court, he said.
"We've only been at this one month," he said. "It's a complicated financial situation at this point in time. We have an aim for when we'll cross that line."
The board, he said, spent much of its time going over GM's financial statements, then moved to the Milford, Mich., proving ground northwest of Detroit to drive vehicles.
After the drives, Whitacre said he is confident that GM can protect and grow its market share in the U.S. despite shedding four brands to focus on Chevrolet, Buick, GMC and Cadillac.
"We think it's possible. Time will tell," he said, adding that it's important to grow market share to grow sales.
GM ended July with 18.9% of the U.S. market, down from 20.5% a year ago. The company in the 1950s controlled more than 50% of the market.
GM, in a viability plan filed with the U.S. government in April, predicted its U.S. market share would be 19.5% this year, 18.9% next year and 18.6% in 2011.
GM will stick with the Chevrolet Volt rechargeable electric car despite reservations about its prospects of making money that were expressed by members of the Obama administration's auto task force, Whitacre said.
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