Gm Freshens Up Market Strategies

First quarter report shows that the sales of theassembly of Volvo engine parts.
Toyota Motor Corp. have swiftly surpassed that ofOn another perspective, GM is reaching out more for
the General Motors Corp.'s. This is why critics in theinput, and even putting a decision on generating a
industry are expecting GM to double its efforts to holdconcept vehicle up to a vote. "This is a team game,
on to its crown as the world's largest automaker.and to get the team functioning at its most efficient
The excitement continues and the thrill leaveslevel, you have to have all the players playing to their
enthusiasts and critics astonished. Is Toyota about tostrengths," GM Vice Chairman Bob Lutz said before
grab the finest title in the auto industry which wasintroducing a set of new concepts for mini-cars.
safeguarded by GM in the past three decades?Finding it hard to choose which from the three models
Texan Ross Perot, during his brief stint on GM's boardshould debut at the New York Auto Show (NYAS),
of directors, once described the automaker asGM decided to show all the cars and then let the public
"isolated and insulated" from the American drivingvote on which should see production. "If that means a
public. Just about two decades later, amid a massivegreat idea is born in one spot and develops into reality
overhaul at the world's largest automaker, signs aresomewhere else," Lutz said. "So be it." The new set of
starting to come into view that GM is shedding thatproduct lines is set to debut next year at the Detroit
impeccable and domineering style of management.Auto Show.
GM is taking a more flowing and unfastened approachGM's shift is gradually penetrating into the market.
to doing business in an industry it once ruled. This isSome say it started nearly a decade ago, when GM
because the company was jolted into action byadopted a team approach to vehicle development that
unprecedented sales doldrums and market sharehas people from various departments coming together
declines resulting to overwhelming losses. Experts into make important decisions. The shift was reckoned
the industry are now called on to guide top executivesfrom the time when managers sent orders down the
in making critical decisions. GM's pool of designers isranks.
now given a wider leeway and freedom to whip upSince Lutz the product czar took on the role in 2001,
product lines with no advance approval from the topdesigners at GM have talked about feeling more
executives. And, in a first for GM, the public could havevalued and empowered. But it has been only recently
final say in choosing a new vehicle to be soldthat the shift in thinking has begun to trickle down into
worldwide.GM's public face - its products, marketing and ads.
"The company that I hired into no longer exists - which"There's a lot less Detroit tunnel vision than there used
is a good thing," said John Manoogian, the designto be at GM," said David Healy, a Burnham Securities
director for Cadillac, who started his GM career 30auto analyst. "You can see it in the new models that
years ago in the now-defunct Oldsmobile division.are coming out. And that's what's important."
"There's a new sense of where we are and what weThe ideas for the vehicles, which the automaker would
have to go to. We have senior managers saying, 'Younot tackle, were drawn from a small team of
guys show us what you can do.'"designers over at Cadillac. Traditionally, designers get
In the past decades, the supremacy of GM cannot bedirections to make products based on a market need
overemphasized. As a fact, its influence all over theor hole in GM's lineup. In this case, the team branched
global auto industry made it rule the longest. But in theout and came up with some clay models of vehicles
past few years, the supremacy seems to flicker tothey thought GM should build.
make its foreign rivals even stronger in its place ofSoon after the models were made, the designers got
dominion. GM's plight may have gotten ominous enoughword that Lutz and CEO Rick Wagoner were coming
to stimulate some actual changes in that manner ofdown to the Warren design center to take a look at
thinking. Some of this is apparent in the attitude ofthem. "We brought them out on the patio, and they just
upper management. With the overhauling of marketsaid, 'Hey, let's do this,'" Manoogian said. "For me that
strategies, everyone is more able to offer suggestionswas the epiphany - when the light bulb went on that
and question company strategy. Same thing with whatwe were doing things differently.
the Ford Motor Co. is eliciting in the manufacture and