New GM North America Boss Tightening Up the Team
December 11, 2009
In webchat with a "consumer" audience that seemingly was populated by plenty of industry-savvy questioners, new General Motors Co. North America president Mark Reuss said Friday one of his first initiatives since assuming his new role early this month will be to streamline some of the corporate structure.
Reuss said his planned new system comprises just five direct reports that are "laser focused" on sales, marketing, manufacturing, Canada/Mexico and GM's OnStar telematics-service unit. He said recently-resigned CEO Fritz Henderson "had a lot more to do," inferring that the reporting to Reuss can be simplified because of the different duties of CEO and North American president positions.
Reuss also insinuated he will be working to solidify the ties between GM's North American engineering activities and its Adam Opel AG European Operations. After a lengthy period in which GM made preparations to sell off Opel, the company's board decided to retain the division. Now, Reuss said, he plans to leverage the engineering and product-development experience at Opel to the benefit of all GM vehicles.
"I put Karl Stracke in behind me here (at GM North America) as (vice president) of vehicle engineering globally," Reuss wrote in the webchat. "He is from Opel and one of the best engineering guys ever - so he will help us raise the bar even further in how we knit Opel and everyone together.
"Opel is a really really good set of engineers," he added, "that will add to our vehicles throughout the world and they can again put the Opel DNA back into the local-brand products in Europe."
Dealer Derring-Do
And Reuss said improving GM's relationship with its dealers - and through dealers, customers - is one of his chief priorities. He also candidly said he approves of the federal legislation currently being considered to force GM and Chrysler Group to arbitrate with disgruntled dealers recently disenfranchised by the companies' wide-ranging dealer-consolidation initiatives.
"Dealers are gonna be my first activity," Reuss said, adding, "The legislation that is happening is a good thing - to bring integrity and the right decisions for the companies and the families of our dealers across the land. It is an opportunity for all of us to make the right decisions and move on. The relationships of dealers and customers is my highest priority. Period."
(Reuss said he had met with two Cadillac dealers this week, and rumor in Detroit confirmed Reuss was insistent on visiting dealers entirely unannounced - despite the objections of other GM executives).
Pontiac Is History, Buick Can Snag Millenials
In other highlights from the webchat, Reuss said:
> He doesn't see much hope for any revival of the Pontiac brand. "It does not look good for that. Things happened."
> The president's Task Force on Autos is not interfering with product decisions, including the ever-present rumor the left-leaning White House's minders are forcing on GM a green agenda.
"No they are not (interfering). They like our plans for our products and the resultant focus that we have on green house gas and petrol use (sorry, "gasoline" - two years in Oz affecting my speech)."
> GM has plans to seize the lead in fuel-economy for the mainstream midsize-sedan segment - although Reuss insists he cannot yet reveal how GM plans to do so.
> He has "a lot of respect" for the Buick brand "and the range and depth it can resonate with" and believes Buick can be infused with appeal to younger buyers. 
Reuss said "hot design" can help increase Buick's potential for snagging a new generation of customers and noted the first 2010 LaCrosse sedan was sold to a 33-year-old.
>GM's newest products will be profitable even if they cost more to produce and the company will rely less on incentives to convince customers to buy.
"We have product that people will be willing to pay for because they see value in the car: styling, quality, service, safety - and our new product will have it - so the 'incentive of the day' goes away 'cause the product drives value and we make money on good product. I know this sounds fundamental - and yes, it is."
The new GM North America president summarized by saying the company is playing its post-bankruptcy revival straight-up.
"No parlor tricks - stay with us. You will like what is going to happen," he said.
"Trust is key. Dont take the changes in our teams as a bad sign. It is all about putting in place what is needed to be great again. And we will." - Bill Visnic, senior contributing editor
Photos by GM
1. Mark Reuss signs a poster for a fan in Australia, where he recently served as president and managing director of GM's Holdens division.
2. Reuss said more contemporary design, such as that of the popluar Enclave, can help Buick become relevant to a new generation of customers.
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