General Motors' Leadership Shift: Key Changes Expected to Bolster Company's Recovery

Strategic Insights -

The General Motors Corporation's board meeting in New York is expected to bring significant changes to the company's leadership, marking the most substantial personnel moves since 1992. G. Richard Wagoner, the company's 41-year-old chief financial officer and head of worldwide purchasing, is likely to be promoted to the No. 2 job, President of North American Operations, responsible for the domestic vehicle business and nearly 80% of GM's revenues.

According to automotive financial analyst and author Maryann Keller, G. Richard Wagoner's success in helping GM turn around its billion-dollar losses in the US, Canada, and Mexico has made him a prime candidate for the top job. With Jack Smith's cost-cutting campaign and the surge in demand for new cars and trucks, GM made $511 million in North America in the first quarter of 1994, and North American operations are expected to finish the year in the black. As Wagoner takes on more strategic responsibilities, Smith will focus on significant decisions, paving the way for a new era in GM's leadership.

Key Takeaways:

  • G. Richard Wagoner, the 41-year-old chief financial officer and head of worldwide purchasing, is expected to be promoted to the No. 2 job, President of North American Operations.
  • Wagoner's success in helping GM turn around its billion-dollar losses in the US, Canada, and Mexico has made him a prime candidate for the top job.
  • Jack Smith's cost-cutting campaign and the surge in demand for new cars and trucks have led to GM's improved financial performance, with $511 million in North America in the first quarter of 1994.
  • Wagoner joined GM's treasurer's office in 1977 and has held various finance positions before becoming director of strategic business planning for the former Chevrolet-Pontiac-GM of Canada Group in 1988.
  • Other potential reassignments include the promotion of J. Michael Losh to replace Wagoner as chief financial officer and the promotion of Robert Hendry to take over Wagoner's role as chief of worldwide purchasing.
  • Philip Guarascio, marketing and advertising general manager, could be named to replace Losh as vice-president of sales and marketing.

Statistics:

  • GM made $511 million in North America in the first quarter of 1994.
  • North American operations are expected to finish the year in the black.
  • 80% of GM's revenues are generated from domestic vehicle business.
  • G. Richard Wagoner joined GM's treasurer's office in 1977.
  • 1988: Wagoner became director of strategic business planning for the former Chevrolet-Pontiac-GM of Canada Group.
  • 1991: Wagoner was named president and managing director of GM's Brazilian operations.

Sources:

  • Associated Press, Detroit MI
  • Maryann Keller, Furman Selz Inc.
  • General Motors Corporation