By JOHN D. STOLL and SHARON TERLEP
General Motors Co. kicked off a new era following its exit from bankruptcy protection on Friday, with Chief Executive Frederick “Fritz” Henderson promising to transform the auto maker into a leaner and more customer-focused company.
The new company will put a premium on speed, accountability and risk taking, and root out the layers of management that had hobbled decision making, he said at a news conference.
at GM must realize this and be prepared to change, and fast.”
“Business as usual is over at GM,” Mr. Henderson said. “Everyone In a preview of a broader management shakeup to come, Mr. Henderson said the company was scrapping a number of senior posts and has disbanded two committees of top executives that made key decisions for the company’s automotive operations. Mr. Henderson expects hundreds of middle managers to be let go in the weeks ahead, and the company’s sales and marketing operation will be reorganized.
“Our culture to this point has been an impediment,” Mr. Henderson, a 25-year GM veteran, said. “This is all about flattening the management structure.”
Mr. Henderson said he is adopting some techniques used by the alliance of Renault SA and Nissan Motor Co., led by Carlos Ghosn. Several of GM’s highest-ranking executives studied Mr. Ghosn’s approach in 2006 while GM’s board weighed a potential merger with Nissan-Renault.
Mr. Henderson and his top lieutenants also are planning to hit the road in August to talk to dealers and consumers to gain insight into the U.S. market. In the past, GM based much of its decision making on market-research studies, focus groups and strategy meetings among executives. Dealers said the company needs to reconnect with consumers.
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